Income Tax: TDS plays a significant role when submitting income tax returns. It is a government-issued system that incorporates tax deducted from the taxpayer’s income.
What is TDS
TDS functions as a mechanism introduced by the government to combat tax evasion. Prior to disbursing any earnings, interest, rent, or professional fees, a specific amount of tax is deducted as a precautionary measure. The tax amount deducted through TDS is remitted directly to the government.
In cases where an excessive amount of TDS is deducted, the taxpayer has the option to claim a refund when filing their income tax return (ITR). Details concerning the TDS deducted are documented in Form 26AS of the ITR.
Form 26AS contains this information
Part A of Form 26AS contains details regarding the TDS deducted from income during the entire financial year. It includes essential information like the deductor’s name, PAN number, income source, date of TDS deposit, among other specifics.
After verifying the TDS information given in Form 26AS, it is recommended to proceed with filing the income tax return (ITR). Now, the query arises: what steps should be taken if there is a discrepancy between the TDS details in Form 26AS and Form 16?
What to do if the TDS information in Form 26AS is not correct or there is some error in it
In case there are inaccuracies or discrepancies in the TDS details appearing in Form 26AS, the taxpayer can initiate corrections. The Income Tax Department has enabled a provision for taxpayers to modify such information.
As per the details found on the Income Tax Department’s official website, taxpayers are allowed to modify the TDS information in Form 26AS by citing appropriate reasons. It’s important to note that amendments cannot be made in cases where taxes are deducted using an incorrect PAN number or if TDS details are not provided to the Income Tax Department.
For this reason, the Income Tax Department also recommends that taxpayers verify the information shown in Form 26AS. If there are discrepancies in the details provided in Form 26AS, they should initiate the process to correct them. Taxpayers can submit requests including TDS/TCS correction details to facilitate the rectification process.
