EPF TDS Refund & Rectify the defect in your Return of Income


The gross receipts/income, on which tax has been deducted, are to be entered in the schedules under the respective heads of income, as they are assessable in the year in which the credit for the TDS is being claimed.

Probable Resolution

“If the receipts as per Form 26AS is not offered in the year in which the TDS credit is claimed, then the claim of TDS will be restricted on the basis of proportion of the receipts offered in the return of income to the receipts in Form 26AS, as per Rule 37BA of the IT Rules. The correction of this defect is to be made by filing the corrected return by offering all the receipts as per form 26AS or by claiming the TDS proportionately as above.”


Got this message probably because the amount on Form 26AS includes the EPF that includes employee contribution also. Whereas in the ITR, only the interest on employees’ contribution to EPF (Other income) & Employer contribution + its interest (salaried head) were added.

How to resolve this? Kindly suggest. Thanks.

Hi @acchainsaan

Based on the information you provided, it appears that the ITD has sent you a notice regarding a defective return. This usually happens when there is a mismatch between the income reported in your ITR and the income shown in Form 26AS. It seems you may have missed reporting any income or value while filing a return.

To resolve this, you are required to provide the correct and accurate information in response to the notice on the Income Tax e-filing Website, hence, you must rectify the return to address the issue.

Here’s how you can respond to the defective return notice u/s 139(9).

Hope it helps.

Thank you, Team.

I will elaborate here so that you can advise me accordingly.

I had withdrawn EPF in less than 5 years due to which 10% TDS was levied on it.

Since I never used my EPF contribution for 80C, I mentioned only a) Employers contribution + interest under salaries and b) Interest on my contribution under other income.

So, this could lead to a mismatch in the income in my 26AS and what I am mentioning in the ITR.

Please tell if I should mention my own contribution also under other income and then mention this amount under the income exempt from taxes? Else, how to resolve this. Please suggest. Thanks.

Hi @acchainsaan

If you’ve withdrawn contributions from EPF in less than 5 years, then you’re supposed to report the particular income under Income From Other Sources (IFOS).

You may not have reported or may have under-reported the income, so that’s is why it showing a mismatch. Hence, you need to update the income in your ITR.

Hope it clarifies your query.

You need to read properly. I clearly mentioned that employee contribution is not taxable since I didn’t show it in 80C but interest on it is taxable as other income. While the entire employer’s contribution and the interest on it are taxable as income from salaries. So, the mismatch in 26AS and what I would report is evident since 26AS shows the total EPF and not component wise EPF.

How can I update my income when my contribution is non taxable as mentioned above? READ PROPERLY BEFORE RESPONDING!

Hello @acchainsaan,

As per the provisions, since you have not claimed 80C deductions for EPF contribution, your contribution i.e. employee’s contribution is treated as exempt income. You need to show the employee’s contribution as exempt income and resolve the mismatch with 26AS.

Hope this helps!