Using 26AS? check your tax credit twice!

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The ITR that you file is only as good as the source from which you update the data. Ensuring that the source data is correct is essential before starting the e-filing process. This includes the tax credit statement form 26AS.

What is Form 26AS?

Form 26AS is basically a consolidated tax credit statement that has all the details of various taxes deducted on your income at source. Form 26AS is the tax passbook which enlists the detail of taxes deposited on account of taxpayer during the financial year. These taxes can be in form of TDS (tax deducted at source), TCS (tax collected at source). You can access Form 26AS from the tax department’s website. Some banks also provide access to Form 26AS for their account holders. Earlier, details regarding advance tax and self-assessment tax were available in Form 26AS. However, this information is now reflected in the Annual Information System (AIS), which can be accessed through the Income Tax website by logging in.

What happens if there is a mismatch?

If there is a mismatch in the amount of TDS claimed in income tax return and the amount of TDS appearing in Form 26AS, the assessing officer will provide credit only for that amount which appears in Form 26AS. In this case, the taxpayer shall be issued a demand notice requiring him to deposit the tax equivalent to mismatch in the amount of TDS. However, if tax is refundable to him/her, it shall be reduced by the amount of TDS wrongly claimed in the ITR.

Reasons for Mismatch

  1. Tax deductor might have failed to submit the amount of TDS with the government
  2. Deductor failed to submit TDS return
  3. Wrong PAN was quoted by the deductor in TDS return
  4. Incorrect amount entered in the TDS return
  5. Mistake in the chosen Assessment year
  6. Incomplete details of the assessee in the TDS return
  7. Mismatch in the TDS quoted and the actual TDS deducted

Thus, in such situation, a taxpayer should contact the tax deductor to rectify the discrepancies found in Form 26AS.

Any assistance or guidance needed in relation to Income Tax E-Filing or any other matters, please reach out to us at contact@msassociates.pro

 

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