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16/03/2015

What to do if Form 16 Show TDS Deduct & Form 26AS not?

This is the Financial Year End month and thus every Taxpayee wants to match Tax Credit Statement (Form 26AS) before submission of Annual Income Tax Return to Assessing Officer, Income Tax.

If tax credit statement not match by the Taxpayee, it is more difficult comply paid Tax/TDS which are deducted by Deductor or Employee as well as in case if the Tax payee get refund that time Taxpayee face the problem to get proper Refund.  Due to this problem every taxpayee want to register PAN with TRACES, although more taxpayee did not registered with them.  Therefore, for those the Taxpayee who did not registered with TRACES they can adopt the following procedure to check their Tax Credit (Form 26AS Statement without PAN Registration.


Login to TRACES web site www.tdscpc.gov.in.

Mandatory Fields to check Tax Credit Statement:
·                     PAN of Deductee*
·                     TAN of Deductor*
·                     Financial Year*
·                     Quarter*
·                     Type of Return*
or
Click Here and Enter correct information in Mandatory Fields.
The duty of TDS or TAX Deductor is bounded to :
·                     Deposit the tax deducted at source within prescribed time to the Government Treasury.
·                     File the Quarterly TDS return in respect of the Tax Deducted
·                     Issue the TDS Certificate to the Deductee within a prescribed time.
For non compliance of each and every part mentioned above, there is a separate penalty and consequences under the Income Tax Act-1961 as under:
1.     For non issuance of TDS Certificate within a prescribed time, penalty is imposable u/s 272A (2) @ Rs. 100/- per day during which the failure continues. However, the amount of penalty cannot exceed the amount of tax deductible/deducted.
2.     For non filing of TDS Return also, there is a penalty provision of Rs 100 per day. The recent Finance Act-2012 has imposed a fee of Rs. 200/- per day for late filing of TDS Return. Besides, a penalty of Rs. 10,000/- to Rs. 1,00,000/- is there for non filing or inaccurate filing of TDS return. The amendment is w.e.f  01.07.2012.
Without Quarterly TDS Return being filed by the Deductor, you will not be entitled for the Tax Credit in respect of TDS done from payment made to you. Also, unless and until the TDS return is filed by the Deductor, deductee will not be able to view the TDS Credit in Form No. 26AS.

There is a general grievance that in many cases the Bank and other Tax Deductor are either not filing the quarterly TDS return (or are not issuing the TDS certificate) despite many requests & reminders by the Deductees.

In such cases, Deductee can follow the following approach:
Write a letter to the Deductor incorporating:
·                     The details of payments done and the tax deducted there from.
·                     Provision of Section 203 which requires the Deductor for issue of tax certificate within one month from the date of tax         deduction
·                     Keep the proof of letter issued to the Deductor
·                     If despite this, the certificate is not issued, write a letter to Joint Commissioner or Addl. CIT of TDS wing who has                jurisdiction over the Deductor mentioning the detailed facts elaborated above.

We advise all our readers to regularly track all the tax deducted & deposited in your account [i.e. Tax Credit in Form No. 26AS] by registering your PAN at www.incometaxindia.gov.in. In the absence of availability of TDS in form No. 26AS it would be difficult for the Assessing Officer to grant the TDS Credit.