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 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.

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.

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.

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.

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)

Click here to Read Other Articles from CA Sahil Jolly

More Under Income Tax

Posted Under

Category : Income Tax (26766)
Type : Articles (16262)
Tags : CA Sahil Jolly (26) Form 26AS (59) TDS (981) TRACES (55)

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

  15. kamlesh jain says:

    in my 26as statement, my income is shown less, and tds shown exactly deducted.
    In january and february sal, tax was not decucted, so income of january and february sal income not shown in 26as by employer.

    now can i file income tax return with my actual income. which is not match with 26 as. tds amt is perfect

  16. Aswath says:

    Some bank I have deposited some amount. but instead of reflecting TDS amt on form 26AS Bank shown total interest credited amount on the form. is it OK.

    Pls clarify

  17. Aswath says:

    Some bank I have deposited some amount. but instead of reflecting TDS amount on form 26AS Bank shown total interest credited amount on the form. is it OK. Pls clarify

  18. Nitin says:

    in one bank I have deposited some amount. but instead of reflecting TDS amount on form 26AS Bank shown total interest amount on the form. is it OK.

  19. SUNIL KUMAR says:

    in financial year 2014-14, my employer give me correct FORM 16 ( PREPARED MANUALY IN OFFICE ) incorrect TRACES(form 26AS). despite of my several reminder my employer didnt correct my TRACES ,and based on my ITR , I got refund
    NOW WHAT SHOULD I Do pl advise me

  20. priyanka says:

    I have receive maturity proceeds in respect of bond redemption in A.Y. 2011-12 after deduction of TDS. I have submitted the return manually claiming TDS refund but same have been denied as TDS is not appearing in Form 26AS. No PAN no. was furnished at the time of redemption of bond. I have the proof that TDS have been deducted on maturity proceeds. IT Department is now raising demand for tax for A. Y. 2011-12 and deducting the same from my pending refund.
    How can I claim TDS Deduction where PAN is not furnished?
    What is the Procedure?

  21. kamal K sharma says:

    I have deposited FDR of Rs.200000 in 20006 for -8- years in UBI, at that time I have no PAN, as I am retired pensioner, I am not well aware of PAN Card & 15H, The Bank has deducted Rs39000 in the last -8- years. They have not infromed me about deduction of TDS and submission of PAN card & 15H. On maturity on 20.10.2014, they just told me that you have not submitted PAN card & 15H, TDS has been deducted, we cann’t do any thing not.

    Then can i claim for deducted TDS from bank or even through higher authorities?

  22. Mahendra says:

    I joined my office in Month of June 2013.
    In June 2013, I submitted my investment declaration. I didn’t have PAN card at moment. In June 2013, Rs.7089 income tax got deducted from my salary.
    In July 2013, I submitted my PAN card. From July 2013 to January 2014, No tax was deducted.
    In February 2014, income tax Rs.5569 and educational cess Rs.167 got deducted. In March 2014, no tax deduction.

    Now my form 16 shows that Rs.5736 is amount deposited to IT. My tax payble is Rs. 6098.
    My total tax deducted by office is Rs. 12825.

    As tin-nsdl.com/etds-etcs/faq-etdrevised-general.php, tells that if there are deficiency in general TDS/TCS statement, then correction can be done by furnishing correction statement. Correction can be: Update PAN of the deductee or employee in deductee/salary details.

    My deductor is saying that he can not help me on this matter. What should I do ?

  23. Sanjay Goswami says:

    Sir,
    I am not under tax payable category as I am student. I do work in MLM company. The MLM company charges tax(at source) on my commission and those are reflected in Form 26AS. Now my question is does tax payed at sources are refundable as I am not under tax payable category.

  24. Nidhi says:

    In my 26AS, the amount of tax deducted is Rs. 156, however, the amount of tax deposited is Rs. 160. So I can claim credit of Rs. 156 or 160?

  25. Gaurav says:

    During the PY 2013-14, someone has inadvertently deposited TDS of Rs. 78,000/- u/s 1941A against my PAN number. He requested me to claim the same in my ITR and refund the amount to him. However, I advised him to get the same rectified. I even talked to his CA and told him to get the same rectified. Despite several reminders, the person has failed to do so.

    Recently, I filed ITR and didn’t claimed that incorrect deposit as TDS resulting in mismatch in TDS as shown in 26AS and that filed in the return. Being a online ITR, the system will definitely give the error and will send a notice to me.

    What is the course of action available with me?

  26. dattatreyahg says:

    Venkat is correct in his posting above [17 july 2014 (12:49 PM)]. But it needs a little more explanation. I am also not an expert,but have tried to get answers to my own similar questions from people who claim knowledge on this. Some kind of FDRs fetch Interests physically given to us only at the end of the tenure( say after 5years). But the accrued interests for each year are considered as taxable interests for each year, even though we dont physically receive on year to year basis.We dont get Form 16A if the aggregate of accrued interests do not exceed Rs 10,000 in any year,as no TDS is deducted then. All the same these accrued interests even if they are less than Rs 10,000 are to be considered as our income for the year,and tax ( as per slab rates) must be paid on that. We get to know what exactly is this accrued interest for the particular year only when we ask for,and get a yearly Interest Certificate. Pass-Book of a Bank does not show accrued interests. I hope I am correct. But a person like Sri A.Abubaker (Retd ITO) who has posted his comments above( on some other issue) should confirm the correctness of what I have said.

  27. dattatreyahg says:

    I refer to Sri A Abubaker’s posting d/d 16 July 2014( 7:33AM). It is so kind of you. What a paid ITO could have done,and did not do, you as a Retd ITO have done. That is what is called spirit of service. Keep it up. Having been within the system for long, you should be able to tell us why Refunds are delayed for two/three years. Kindly send your Email address to me at dattatreyahg@yahoo.com I need to get some clarifications from you.

    • A. Abubaker says:

      Sir,
      The obligation of deduction of TDS and remitting the same in government account should be done by an official for which he should be some commission in addition to his salary then the accuracy may be some what good. This commission should be paid by government by levying some cess.
      A. Abubaker

  28. ASHISHMADHAV says:

    Hello,
    I have made an FD for a period of 6 years (starting in may 2013) in United Bank.
    For the Assesment year 2014-2015, the yearly interest earned was Rs 39310 for which the TDS of amount Rs 3931 was deducted.
    However the entire interest earned will only be credited to me after the completion of six years(i.e- May 2019).
    I file my ITR for the salary which I get.
    In Form 26AS the amount of Rs 3931 is also displayed. Do I need to file ITR for this amount also along with my regular ITR.

    • A. Abubaker says:

      Sir,
      You have to compute income from all the sources of income example Salary, Income from property, Business or Profession, Capital gains and other sources.
      You have two source of income one from salary and the other from income from other sources – interest from FD. Compute total income after deducting Chapter VIA deductions if any. On the taxable total income calculate the tax at 10% or 20% accordingly and then 3% Education cess on the tax. On the total give credit for the TDS deducted (on salary and FD) net tax is refund will be credited in the bank account or balance payable we have to pay it.
      A.Abubaker
      Income tax Officer (Retired)

    • VENKAT says:

      I am not a tax expert. but i think that the income of 3931 should be shown in your ITR as income from other sources and you can take advantage of TDS collected shown in 26As as tax already collected. Ir does not matter if the whole amount is given at the end of six years. the notional interest has been added to your principal each year and so taxable

  29. Sunman says:

    Hello,
    My tenant deducted 78,000 TDS on actual total rent of 7,80,000 for AY 2014-15. But form 26AS showing “Total TDS deposited” as 1,20,000 with “Total Amount Paid / Credited” as 12,00,000. Tenant is saying TDS is payed in excess by mistake and will correct it.
    1) Is it possible to correct in Form 26AS?

    Though I will reconcile the rent with my tenant if it is not possible to correct form 26AS, my concern is if it not possible to correct in form 26AS:
    a) I have to pay income tax on higher slab.
    b) I have to start collecting service tax from AY 2014-15 because the rent is exceeding 10,00,000.

  30. Malkeet says:

    Hello Dattareyahg,

    I can help you with getting your refund order processed. Please contact me at ca.malkeetpadam@gmail.com

    Regards
    CA Malkeet Singh
    9915933593

  31. Arun says:

    It has been observed while processing the return a person following Receipt/Cash system of accounting the credit of TDS according to Form 26AS is given propertly i.e if a person deducted tax on 31.03.2013 and the person who claimed the TDS in subsequent year on receipt of payment the credit of TDS not getting since they only follow the credit of the particular year and not earlier from the Form 26AS.
    What is the solution for this because the intimation recd raising demands.

  32. A, ABUBAKER says:

    Sir,
    I fully agree with the statement of Mr. Dattareyahg. I am working with a CA and in the cases of our clients there is lot of mismatch of TDS credit due deficiency of credit reflected in the 26 AS. This due to none filing of TDS returns by the deductor, mistake in PAN etc. The deductee is not able get the credit even after much persuvation with the department. Due this there is lot of paper demand and lot of refund pending with the department. The department should take proper corrective step in this regard with the help of CBDT.

  33. venkat says:

    I am always checking 26 AS particularly before finalsing my filing tax return the problem is
    1. delay in deducting authorities (including PSU banks) in submitting TDS forms or sending defective TDS which is not reflected in 26as
    2. in many occasions 26 AS form is mostly Lower than what they actuallY deducted. we have to depend upon the deducting authorities diligence and accuracy. Customers do not have much control and nor IT authorities to bring these guys to do the needful correctly and timely. In the case of my friend the postal authorities sent TDS much later than 31st july the last date of submission. IT also does not care. The whole system of TDS is defective and there should be different method. TDS should be scrapped.

  34. dattatreyahg says:

    Here lies a problem. If 26AS entry is sacrosanct, I should get that TDS credit automatically based on my PAN no in my IT Return. Because of the inadequacy / inefficiency of the computerised system,I am required to mention TAN no of Deductor. OK,I will do that. Not enough. I have to mention Certificate no of Form 16/16A also. Ok, I will do that. After all this Grand Paper-work(in a computerised system!!!!), I am still waiting for my REFUND to a tune of 19000 due to me for over two years. Hats off to this system,if you want to call this a system at all.

Leave a Reply

Your email address will not be published. Required fields are marked *