Form 26AS is, in essence, an acknowledgement of sorts when it comes to Tax Deducted at Source (TDS). Which is to say that Form 26AS shows the amount of TDS, which has been deducted and is available as credit against our Income Tax liability, if any.

To understand this concept and in order to make it work in one’s favour, one needs to understand the basics with respect to TDS and Form 26AS:

TDS:

1. TDS or Tax Deducted at Source refers to the deduction of Tax from the respective source of one’s income. Example: Let’s say that you are a Salaried employee in an organization so, subject to the applicable basic deduction/exemption limit, the organization pays Salary to you after deducting TDS from the same. Thus, Salary is your source of income and the deduction of Tax by the organization from Salary (the source of income) before paying the same to you is referred to as Tax Deducted at Source (TDS).

2. Tax is Deductible from various sources of income subject to applicable basic deduction/exemption limits. Example: Bank deducts TDS from interest (the source of income) on Fixed deposits etc.

3. Now, TDS which has been deducted by the deductor (the person responsible for making the payment, example: Bank which pays interest on Fixed deposit so Bank will be referred to as a deductor), has to be deposited in Government account on behalf of the deductee (deductee is the one who receives the income, example: the receiver of interest on Fixed deposit from Bank).

4. After depositing TDS in Government account, the deductor, files a TDS return after the end of every quarter with National Security Depositories Limited (NSDL).

5. The main purpose of filing TDS return is to inform the Government as to what all payments have been made during the quarter, to whom have the payments been made, what was the nature of payment like interest, Salary,commission, etc., PAN no. of the person to whom the payments have been made, the rate and amount of TDS deducted etc.

6. Thus, basis these returns, Government gives the credit of TDS to the respective persons on behalf of whom TDS has been deducted by the deductor.

Form 26AS:

1. Government gives the credit of TDS on the basis of TDS return and this credit gets reflected in Form 26AS. Example: Let’s say that you have a Fixed deposit of Rs.10,00,000/- @8% with ICICI bank and the Bank paid the interest of Rs.18,000/- (20,000-2,000 (TDS)) for the period April to June and then in July filed the TDS return for the period April to June. Thus, after filing of TDS return by ICICI bank, a credit of Rs.2,000/- will get reflected in your respective Form 26AS because in the TDS return filed by Bank, Bank had given the details of interest payable to you i.e. Rs.20,000/-, the amount of TDS deducted from the same i.e. Rs.2,000/- , your PAN number, Name etc. Hence, on the basis of your PAN number, the Government gives the credit of Tax deducted from your income which gets reflected in Form 26AS.

2. The organization deducting TDS from your income, like ICICI bank in the aforementioned example, will issue a TDS certificate to you after filing TDS return.TDS Credit cannot be denied on the ground of Form 26AS mismatch

3. You can compare Form 26AS with TDS certificates issued to you and if the amount of TDS deducted as per Form 26AS and as per TDS certificates is the same then it means that the Tax credit reflecting under your PAN in Form 26AS is correct. However, in case if TDS in certificates and Form 26AS does not match then you need to inform the deductor i.e. ICICI bank in the aforementioned example. The deductor will then revise the TDS return filed because such an issue of TDS credit not getting reflecting in Form 26AS occurs only when there is some error in TDS reurn filed by the deductor. Penalty cannot be levied for difference in Income with form 26AS

4. Most common reason due to which proper credit does not get reflected in Form 26AS is that the deductor has not quoted or has quoted incorrect PAN number (your PAN number) in TDS return. How to get Errors & Omissions in form 26AS rectified

5. Once the revised TDS return is filed by the deductor after making necessary corrections then the credit will get reflected in one’s Form 26AS after sometime.

Thus, before filing the return of income one must check Form 26AS to make sure that proper TDS credit is appearing in Government records.

Please remember that irrespective of TDS certificates you have, credit of Tax shall be given on the basis of Form 26AS only. However, these days TDS certificates are being downloaded from TRACES portal, thus, chances of mismatch between TDS certfificates and Form 26AS are minimal. Learn How to view Tax credit statement Form 26AS on Income Tax Website.

Please take care that you claim TDS credit in your Income Tax Return after tallying TDS certificates received by you with Form 26AS so that you get 100% benefit of TDS deducted from your income. As, at times, it so happens that the amount of TDS credit appearing in Form 26AS is more than the amount in TDS certificates and this happens because one or some of the deductors who have deducted TDS on your behalf have not issued TDS certificate(s), for the same, to you.

(Author Details- CA Sahil Jolly – Jolly & Co. Chartered Accountants, Contact: +91-9999830077, Email : casahiljolly@gmail.com)

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(Republished With Amendments)

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40 responses to “Form 26AS with respect to TDS: Knowhow”

  1. Banu says:

    Hi

    My mom got notice for tds return -194a for 2013.in 26a form tax amount paid/credited is 89000/- but tax deducted and tax deposited is zero . Why?

  2. subhankar dev says:

    kaberi mam plz help me.i have a problem regarding tex refund in MPKBY.Plz call me-8811978349

  3. K Selvarajan says:

    If you have provided form 15G/15H, then no TDS will be effected by the bank. But the bank will post the interest accrued for every quarter in form 26AS. You have to calculate the tax and pay as self assessment tax.

  4. namit chhabra says:

    Dear sir. The TDS details get updated after about 15 days from the end of quarter in which the payer has filed the TDS return.

  5. Rupa says:

    Hi Sir

    My Bank had deducted an amount of 10k in Tax in FY 2014-15, I filed the same in my IT Return in AY 15-16. I have a notice from IT dept asking me to deposit 8k as demand in 30 days. CPC/IT dept found only 2k mentioned in 26AS/Traces, I went and checked in TRACES and only 2k was mentioned there. I raised it to Bank they are saying it would take them 30-40 days to refile the remaining 8k and reflect the same in 26AS. What do I do I have only 20 days left to reply to IT department.

    Thanks
    Rupa

    • namit chhabra says:

      Sorry to hear that you got into trouble because of your bank’s default. I would be glad to assist you in any further queries/assertions

  6. sudhakara says:

    My TDS is not reflecting in 26as.EPFO bandra has deducted tds@10%.no response ,no one takes call there.how to approach now.TDs was taken in October 2015.

    • Nikhil says:

      Hi
      As Tds was deducted in october 2015, epfo will submit tds details for oct 2015-dec2015 by 15 jan 2016.
      Hopefully you would be able to see updated details by end of jan 2016.

  7. p.srinivasulu says:

    My friend had placed a deposit amount in a bank for which interest accrued was just Rs 2500/.TDs was not deducted as interest was below Rs 10000/.But they quietly showed his income as RS 2500 and TDs as zero in the Form 26As which my friend did not see earlier,before he filed his return.Later when he came to know this, he questioned the bank as to how he can know the interestamount if bank did not send form 16A.They argued that form 16A is not involved as TDS was zero.Then why the Form 26AS showed income accrued alone ??I think it was wrong to show income alone in Form 26 As, which is basically a statement of TDS involved and not “only income paid”. My friend had,any way, later paid the tax due from him for this interest amount . Pl clarify if it is the expected right practice for banks to quietly show income paid alone in form 26AS, even if tax is not deducted .Some say that income is shown , if form 15G or 15 H is filed by the investor to the bank during the fin year .I think even this is wrong!!.Please clarify this situation-whether the bank is correct in embarassing the customer in so doing.PLEASE SEND A COPY OF YOUR REPLY OPINION TO MY MAIL I.D.THANKS

  8. Kaberi Mitra says:

    I am a MPKBY agent of National Savings.
    For the Assement Year 2015-16 TDS has been issued.
    It has not been credited / reflected 26AS
    Numer of times I have requested SPM, Dhanbad.
    I could not make e-filing for the reason.
    kindly advice where to write / complain.
    Thanks

    • Kaberi Mitra says:

      Tax has been deducted from my commission income from MPKBY Agency for the Asst Yr. 2015-16 by Senior Post Master, Dhanbad.
      It is not reflected 26AS.
      I cannot submit for Refund unless it is shown in 26AS.
      should I contact Income-Tax Department directly? or advice.
      Thanks

  9. Ganesh shenoy says:

    Firstly,thank you for your explanation.The explanation was so understandable with a simple explaining power of yours.

  10. Ritwick says:

    I have a strange situation where while filing the ITR 1 through quick e filing, I find that amount credited as salary shown in 26AS is gross income and not net taxable income. So when I want to submit my taxation calculation then it does not accept as there is discrepancy between total amount credited and the amount I am showing in ITR calculation. Should I edit the income under salary in “tax details” to match with one I am declaring in “income details tab”. I think it picks this detail from 26AS automatically.

  11. ashley says:

    I want to file IT Return but I dont have form 16 as my company says there is no TDS deducted for you so cant provide form 16 .How to go ahead now?

  12. prabhu says:

    its very helpful

  13. satish says:

    Sir,

    In my 26as there are some TDS deduct amount present which I do not know why it is present. Please suggest what I should do..Thanks.

  14. KAILASH says:

    Sir,
    while submitting xml for 2013-14 i had mistakenly filled TCS in place of TDS 72456, but the amount deducted is 85276/- I have filled rectification u/s.139 correcting tax credit mismatch filling TDS 85276 and claimed the amount 85276/-,but the ITO didnot allow me 85276 and as per previous demand of 46350/-they again raised the demand 46350/- u/s.154.What shall i do to rectify the defect,shall I submit a fresh return or file rectification petition.If such then how

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