CA. M. Lakshmanan
The Annual Tax Statement under section 203AA in From No. 26AS contains ‘Details of Tax Deducted At Source’ in Part A, ‘Details of Tax Collected At Source’ in Part B and ‘Details of Tax Paid (Other than TDS and TCS)’ in Part C basing on the data available with the department through OLTAS (On Line Tax Accounting System).
In a case where a particular Deductor deducts and if he either does not pay or if he fails to file the TDS return with full details in time, the assessee, from whom the tax is deducted, will not get credit for the tax deducted from him because this particular deduction will not find a place in the Form 26AS. Then intimations are sent demanding the tax (already deducted) with interest. In such a situation top priority is to be given by the concerned officers for the returns filed manually and by the CPC for the e-filed returns to dispose of the rectification petitions filed with a copy of the certificate issued by the Deductor In these circumstances whether the assessee has to file the stay petition for collection of taxes, for the intimations processed at CPC, with the jurisdictional assessing officer or the CPC is not clear. Further the rectification petition and the stay petition are to be sent by ordinary post only since registered post are not accepted by CPC and this procedure will result in unnecessary litigation at a later date regarding levy of penalty and interest for non-payment of taxes and non-acceptance of appeals due to belated filing as there will not be any proof for filing these petitions.
Ultimately, where tax has been deducted and the certificate has been issued, the credit should be given to the assessee from whom tax has been deducted basing on the certificate issued by him even if the transaction does not find a place in From No. 26AS and appropriate action should be taken against the ‘Deductor’ who has either not paid the deducted tax correctly or not filed the TDS return correctly after due verification of the TDS certificate for its genuineness.
Many Public Sector Banks and Public Sector Undertakings neither deduct tax correctly nor file the e-TDS returns correctly in time and certain Banks and Post Offices insist the deposit holders (who are already assessees) to give Form 15G/Form15H to avoid the botheration of deducting, paying and e-filing, which in their opinion is cumbersome. Whether they file the Form 15G and 15H within the stipulated time with the Commissioner of Income Tax is another question and even if filed whether the I.T. Department takes time to verify all of them and take action against the persons who makes false declaration is another big question.
It also happens that certain unrelated transactions appear in Form 26AS such as professional fees or contract payments are shown and tax is deducted, whereas the assessee in whose Form 26AS the payment appears is not at all having connections with Deductor. This happens because of mistake in quoting wrong PAN while filing the ETDS returns. In such cases, unless corrective steps are not taken immediately by the Assessing Officer/CPC in coordination with the officer who is in charge of TDS to eliminate such entries by calling the Deductor while these are brought to their knowledge by the affected ‘Deductee’ there is going to be false demands/refunds.
As of now if an assessee fails to deduct tax or deducts tax at a lesser rate or pay the deducted tax belatedly with interest he can file revised ETDS returns with correct figures and these belated payments have to appear in the Form 26AS. But in the meantime if the assessee, from whom tax has been deducted belatedly, has filed his returns and paid taxes, he has to file revised return to claim the additional TDS, if the original return has been filed in time. Here also how many times and upto which date the revised ETDS returns can be filed is not clear.
To conclude the authorities, who are at the helm of affairs have to take corrective measures at the earliest to avoid huge pending demands/refunds and unnecessary paper work and litigation.
the Article was first Published on 05th August 2010
Read Other Articles of CA M. Lakshmanan
(Republished With Amendments)
Author Bio
We are a subcontractor, And want to know that if tds (IT) deducted but not deposited by the limited company so far. so what can we do? Our financial year was 2011-12. Can we will claim with a legal notice or any other procedure for collect the TDS?
Sir,
I am working in Central Govt (Min of Defence) and they are deducting tax in my salary and the same is submitted to CDA. However, the tax deducted is not appearing in Form 26AS to enable me apply for refund. Kindly let me know the procedure and whom to approach.
regards
Refund has not been issued till this date even after it matches with 26AS(credit statement) for assessment yr 2011-12.I filed my rtrn dtd 08/09/2011 bearing efiling no 282073060080911
nice article to go through.its help in solving the problem of many queries
My son has been allotted PAN ANWPS3102J and has been filing his IT returns against this account.
Suddenly while trying to register his account for e-filing, we find that his PAN has abruptly changed to AUOPS4511L without any intimation to him. while all TDS challans have been made by deductor(s) against earlier PAN.
Please let us know how we can get credit for the TDS credited to the current (new) PAN or if there is any method for getting the earlier PAN restored?
There are only Questions here. Important ones.But no answers are forthcoming. I have seen many such queries answered quickly by experts at .moneycontrol. Readers may like to see that.
hello sir
i dont know very well about tax law.
this is my first time of tds deduction experiences.
deductor not give me a any certificate or my 26 as from blank in nsdl website.
they tell me that we will send tds certificate.
till date i cant received any certificate .
what i do sir?????
help me sir…
In my comment the assessment year may kindly be read as 2011-12 in place of 2010-11.
A.K.Maitra
I am a sr. citizen. I worked in Jaiprakash Associates Ltd. and subsequently in Jaypee Fertilizers & Industries Ltd. upto 31st December during the year 2011-12. My employer wrongly made excess deduction of Rs. 67,000/- + on a/c of TDS during the assessment year 2010-11and deposited the same with the Income Tax Office. Till date, I have not received the refund.I am a retd. person and do not get any pension. My mother is above 80 and is critically ill. Its really serprising that there is no punishment to the employer for such a serious lapse and and an innocent person like me is suffering for the same. Govt. should be urged to take penal action against such irresponsible employer and protect the innocent employees. Why should I suffer so much for no fault of mine?
i have one doubt . if tax is deducted and deposited with ito but only due to not feeding PAN NO they have refused there right claim . I am of the opinion that if banks are issuing TDS cirtificate and amount is not very big ITO must refund the lawful refund on the basis of certificate given by bank as you know banks are use to deduct tax at source and deposit within stipulated time by remitting the same to ITO . Is any circular is their for such refund
SIR
DESPITE THE ONLINE ITR(AS 2011-12) SUBMITTED IN TIME AND ITR V RECIPT HAS BEEN ACKNOWLED BY CPC ON 02.11.2011, AND ALL TDS IS FULLY MATCHED WITH 26AS; EVEN MY REMINDER ON THE SAID SUBJECT ONLY FETCH A REMARK FROM CPC AND MY CONCERN ITO, AS ITR HAS NOT BEEN PROCESSED BY CPC TILL 07.05.2012, WHAT SHALL I DO?
This article is very informative. I am facing the similar problem with State Bank of Mysore. The Bank had issued TDS certificate for FY 2010-2011. But these deductions are not appearing in 26AS. I bought this matter to concerned Branch Manger multiple times and no action was taken on it. He simply puts the blame on the person who uploaded the data.
I am afraid that IT-Dept will raise a demand note for the shortfall of the TDS claimed.
HI,
In FY 09-10 one company has deducted TDS of Rs 2482 on one of our services. For the same they have issued us Form 16A as well, in which our details provided are correct. But it seems there has been some mistake in filing TDS returns from there side as the amount is not getting reflected in our 26AS form.
As the amount is not big they are not willing to refiling the returns. Now kindly let me know how can we get the refund of that amount as it has been paid to IT Dept.
Kindly suggest some way as CPC is telling to contact deducter for refiling it and deducter is not refiling it giving some excuses as amount is less.
i had filling my tds return on 22/11/11. in how many days later my tds amt will credited in my A/c.
Hi All,
I have my 26AS form downloaded from the incometax department, It comprises details against my PAN number “ABCD..”.i.e 26AS contains the following;
TDS deduction – Present with details
TCS transactions – NIL
Details of TAX Paid – NIL
Details of Paid Refund – NIL
However , when I requested for TAX been paid against my PAN number , incometax department stated that there is no incometax details against my PAN number in my ITR.
I am kind of confused, when I have TDS deducted against my PAN number , (which is through my ,small business). How can incometax department cannot have details of that I have paid tax. Am I not tax payer? If I am tax payer whom to ask for the official confirmation that I am a tax payer.
Request to please clarify
Thanks
Thank you for the awareness created.
in spite of best efforts and several visits to Deductor’s office (SBI and Post office- Chennai) I am not able to get TDS amount shown in my A26 form. In the TDS cert they are not showing details of payment to Govt account.
I had problem in the past also with IOB and PO and lost money as refund was denied. I am e-filing returns and therefore not able to get any credit based only on TDS certificates issued by Deductors.
I end up paying tax, fines, travel expenses to deductor’s offices and waste my days pursuing the case without any success while the Deductor is comfortably sitting in his office. Totally unfair system to Tax payee.
IT authorities should permit atleast Sr Citizen tax payers to pay tax on interest income with Advance tax considering peculiar difficulties they face in pursuing the case
I submit return but entry not found in 26AS
How can the mistake in entering interest paid by bank be corrected in 26AS?
Dear Mr. Laxman,
I am facing a problem.
Despite my providing PAN details to the bank, they deducted TDS @ 20% on Interest earned by FDs. In fact they had mentioned my PAN number on TDS certificate issued last year which proves that they have information about my PAN number.
This is not all. I found amount of Interest earned & TDS from statement of FD through my Netbanking account. I checked my 26AS form & found that they made mistake in the value of Interest paid by them on FD in 26AS form. They simply doubled this value (& effective TDS becomes 10%).
Is there a way by which Interest paid value shown in 26AS be corrected? If yes,
how?
I am not sure if they know the procedure for it & therefore, can I read the procedure some where on Net? If yes, kindly send me the link.
Looking forward for your reply.
Thanking you. Best regards, RAKESH
i was thinking that the few problems on t d s which i shared with tax guru,were bothering only me as an individual. looking at the number of responses to mr. laxmanan’s well articulated write-up,it looks these are serious problems affecting many. it clearly shows a lack of application of mind while framing rules. i(we)know now that a serious problem exists and it is a systemic fault. this should not be left here as a matter of just academic interest.this should be pursued to its logical end to get full protection to t d s deductees as they are totally at the mercy of deductors and i t dept. if tax guru can go a step further in projecting this to the highest authorities for immediate remedial measures,he will be doing a great service and will be remembered with gratitude. g. dattatreya
“…….as a first step, seek and obtain the required clarification from the payee,…….”
CORRECTION:
In the above context, the word – ‘payee’ should be read ‘payer’
As regards the numerous problems and views aired, it is prudent for one to be focused on the mandate of section 205 of the IT Act, which is loud and clear.
It bars a direct demand on assessee to the extent tax has been deducted at source (by the payer of ‘income’ liable for TDS).
So far as the ‘payee’ is concerned, his obligation is to furnish the requisite particulars of the ‘payer’ and ‘TDS’ in the tax return. In the normal course, therefore, the revenue is expected to proceed on the premise that the information so furnished is correct and complete. Accordingly, as natural justice demands, the revenue should, in all fairness, in any case of ‘mismatch’ or the like, as a first step, seek and obtain the required clarification from the payee, and only thereafter, if at all that becomes necessary, from the payee, before proceeding any further. Any precipitate action, such as straightaway raising a demand on assessee, without a proper verification of the factual position, will be a blatant violation of the above mentioned mandate. That will also result in, otherwise avoidable, hassle and hardship to the assessee.
vswaminathan
wish to add that in the latest communication from CBDT (instruction no. 5/2010 dated 21.07.2010) to the various CCITs it has been stated that “In all the returns filed in ITR-1 and ITR-2 for assessment year 2009-10, where the aggregate TDS claim does not exceed Rs 3 lakh and where the refund computed does not exceed Rs 25,000, the TDS claim of the tax payer shall be accepted at the time of processing the return,” It would have been more usefull if it is made applicable to the current assessment year 2010-11 and for all the ITRs instead of the restricting the same to Assessment Year 2009-10 and for ITRs 1 & 2.
I also have doubt if there is some mistake in the intimation u/s 143(1) sent by CPC then where should one file ractification application?
In the Form V generated after efiling of return, the designation of A.O (which may be called jurisdiction under which the assessee falls), is shown as the local jurisdiction where the assessee’s address appears on the ROI.
But the jurisdiction to issue 143(1) intimation of efiled returns has been given to the commissioner at CPC.
So where should we file ractification application, is a big question in my mind.
In case of PAN where AO has not send refund, on top line of report of AS 26 it is shown as if the PAN is wrong or non existing . This need to be corrected to avoid confusions.
The article and various comments are interesting and shows practical problems and ground realities. No doubt there are still teething troubles at various levels, and mistakes in data entry and delayed submission of online returns of TDS are contributor to the situation of AS 26 not showing full credit. However, it is also true that there has been considerable improvement over a relatively short period of time, and we can expect more improvement in near future.
What is disturbing is that in-spite of AS 26 showing credit and return of income having been filed long ago – more than two years ago, and assessment having been completed u/s 143.1 and no issue of notice for scrutiny, the department is not sending refunds by ECS or cheques wherever refund amount is larger. Only smaller refunds are sent timely or quickly to make publicity.
How to change practice at offices of AO, of general ‘cashiers psychology’ that some one should come to take payment, even when payment should be automatic?
Government must take stern action against omission of officers and staff in not sending refunds even when credit is shown on AS 26, and assessment is completed (deemed to have been completed) and assessee is entitled to refund.
Form 26AS/ TDS form issued by deducted show correct amount while department AST processing system shows lesse amount. Authorities are unable to resolve this problem.
I agree with Mr.A. L Chaudry. Canara Bank also issues defective and outdated Form 16A not only to the depositors but to their pensioners. Nor does the bank file Form 26 AS. I have taken up the matter with the concerned Branch. The reply was astonishing. “What is there in our system loaded by the head office only is used and the branch is not at fault” quips the Manager. Similarly TATA Motors. I
pointed out that the TDS is shown as “U”. I asked them to rectify. No response so far. Unless punitive action is taken against the deductors, this malise will never end.
IF ANY ONE DEDUCT TDS AND DEPOSIT WRONGLY IN OTHER PAN AT THE TIME OF FILING OF TDS RETURN AND TDS CERTIFICATE IS IN THE NAME OF DEDUCTEE AND CORRECTLY MADE CERTIFICATE, THAN WHAT WILL BE THE REMEDY TO DEDUCTEE TO CLAIM TDS.
Mr. Lakshmanan has raised pertinent problems faced by all taxpayers for no real fault of theirs. It is the common taxpayer who is made to run around. It is utopian to think that the Department will ever be able to successfully do away with issue of TDS Certificates in the foreseeable future, which is its ultimate objective. If the Department is really serious in not harassing the taxpayers, it should continue to allow credit on the basis of TDS Certificates till it perfects its own TDS system.
Thanks for the timely article CA.Laksmanan. Now the IT Department has been informed to process refunds more than Rs.10.00 Laks from the concerned jurisdictional AOs. Again they are not issuing the refunds as TDS from certain deductees are not found place in the Form 26AS. Had the entries are in the Form 26AS the CPC would have issued the refund. And it is not known why processing of returns have been passed on to concerned jurisdictional officers with same procedure. At least they can process the refunds by getting confirmation letters from the concerned deductees and later action may be taken on the defaulting deductees. At least the department can save interest on the refunds issued.
I think the present 2 step system i.e first paying Tax and then filing TDS retun is converted in single step it may help solving majority problems. All details of the deductee should be required to be submitted at the time of payment of TDS into Government treasury.
Thanks for your very informative article. I am also facing such problem in case of my company where I am handling the TDS matter. I have deducted TDS from Directors’ remuneration, deposited through net banking and also filed return on time. Now just few days before I & one of our director have received a letter from I.Tax stating that the amount deducted and claimed by the director are totally mismatched. But surprisingly Form No.26AS of the particular director are showing total deduction and deposited are same as the Form 16 of the company showing. Please let me know what to do in such situation.
A problem has also been encountered when the PSU Bank and other PSU deductors have issued a consolidated certificate without giving separate details of deduction in each quarter. Now there is mismatch and the refunds are held up for no fault of the investor assessees.
Since the systems are online,computer based, errors of om-mission and commission by tax collection system participants should and must attract the provisions of information technology acts wherein punishments are severe and such misplacements of taxes collected are treated as misappropriation of money and not just reconciliation issues where the assessee can be made to run around for no fault of his.
The system introduced by the department is informative and usefull.But most of the deductors especially Gov.Departments, Panchayaths, Banks, Post Offices etc not uploading the information to the NSDL website result in demand for assessee from Dept.The ITD take necessary action againt the deductors who donot file the return on due time otherwise this system leads to huge demand and burden on assesse.
SBI is sending a CONSOLIDATED list of TDS deductions and not on the name of individual clients with their PAN. So these are not reflected in the form 26AS(in the CDSL statement). The finance ministry should take it up immediately with the banks and other deductors.
If CBDT wants the assesses to be responsible then please do away with TDS and let the assesses pay advance tax and be responsible for their own actions and not pay for mistakes committed by others.
I strongly agree with Mr Raj.Assessee can not be asked to pay twice,once as TDs and secondly for default of the deductor.
AS THE tds is deducted as per IT rules because the department have no trust in the payee,than why CBDT demand tax from the assessee for his no defalt.
CA Premchand
The biggest problem is that no where in the system government is putting pressure on assessee to file TDS return on time and correctly. Due to the late or incorrect deposit assesee has to accept what every is given to him and return and then file rectification every time…….it’s high time that department should first set up system that TDs returns and bank entries of advance tax and self assessment tax are file correctly by them.CBDT should also help that bank refuse to accept small payment and want cheques on every payment………..thus challan is given after 5 days by bank…….. thus there are delay in filing returns
Many of the deductors who have deducted tax are not uploading the information on NDSL web site for FORM 26AS. I have FDs with PSU banks and reputed companies which includes TATA group and SBI also . Some of my TDS is information are not appearing in FORM 26AS while others are with remark as U Unreconciled. I have taken up the issue with bank and compnay but no solution. There should be penal provsions for defaulting deductors for not putting TDS information on NSDL web site.
I am not getting credit for my TDS. I have spent lot of time and money on trasport for visiting SBI office several times but no solution.
If CBDT wants the assesses to be responsible then please do away with TDS and let the assesses pay advance tax and be responsible for their own actions and not pay for mistakes committed by others
in fact govt. is the biggest deductor and they are short of immune from the penal action from the other hand of govt i.e income tax deptt. they are,therfore, indifferent to the hardship of general people and never take corrective action inspite of repetitive request to do the same.
govt includes all the wings of govt agencies, banks etc.
Nice material on the latest contrversial form 26AS and TDS deposits and bank challens.
thank you
I am a retired senior citizen. Banks namely SBI & ICICI deducted tax from the interst paid on my savings but the same is not reflected in my FORM-26AS. Inspite of repeated request to the home-branch and e-mail to the greivance cell, nothing has been done.
Unless the government imposes PENALTY on the defaulter, things are not going to improve.
I suggest the penalty should be 50% of the deducted amount not reported/wrongly reported OR Rs 1000/= whichever is MORE and the same should be credited to the Assessee’s account. It may provide a little compensation to the assessee for the unnecessary work load created by wrong-doing of the DEDUCTOR.
No doubt this article is useful for those who should understand the importance of it. Meanwhile one of the Point also need to be covered along with what is said in the article is:
You find that the TDS paid by others and Advance Tax and Self Assessment tax appearing in 26AS is not end of it. I have found in my own case for AY 2008-09 that the full credit is not given for TDS as well as Advance tax paid while assessing the Return of Income as appearing in 26AS.
Tax authorities at the level of Dy Com. has commented that “since you have paid tax at location other than your jurisdiction, it does not appear in our system and hence no credit is allowed. You better pay at location of Assessing Office to get the credit correctly.” It is hightime that CBDT should announce elaborat policy on the credit of tax which would be binding on Income tax department and Assessees alike. Probably this would be a step forward.
Problems for “credit for TDS” needs to be taken up with the Dept.There is one more issue of year of credit. When (1) the Deductor deducts as per his system of mercantile accounting but the deductee claims in other year as per his system of Cash accounting & (2) When the deductee raises the bill at end of financial year but the deductor accounts the bill in beginning of next year.In both this cases the deductee is in trouble to get the credit for TDS
can someone apprise as to what is the legal aspect in the following situation:
a) if the employer deducts TDS for salary paid for part of the year as evidenced by Pay slip and does not deposit the TDS and also does not issue form 16
b) For part of the year for which salary is not paid, whether such unpaid salary also forms part of the salary even though there is no Pay slip, for the purpose of determining Taxable salary?
Will the employee be treated as assessee in default and be required to pay for tax to be paid on the salary received + accrued but not paid even before 31st July 2010.?
Shall appreciate if any judicial pronouncement can be cited to support the assessee who has been paid salary less TDS.
If we follow the current system very correctly then there are lot of benefits. Firstly there is no need to issue TDS certificates as the Deductee can check it out in Form 26AS on line on NSDL website.
Secondly there is no need to wait for TDS certificates and thus ROI can be filed very early. But there are also some practical difficulties. Not all deductors are having the expertise of filing correct E TDS retuns. MOreover the process for Correction Statement is very cumbersome. Why dont the dept develop a program in a way that the deductors are only required to File the Excel file of Deductee sheet & Challan Sheet?
The program should pick up the data & update in OLTAS.
FANTASTIC ARTICLE, MR. LAKSHMAN.
I WISH THAT CBDT & LAW MAKERS MUST GO THROUGH IT AND PRESCRIBE SUITABLE PROCEDURES AND MAKE SUITABLE AMENDMENTS IN LAW, SO THAT FOR THE DEFAULTS OF THE DEDUCTORS, INNOCENT DEDUCTEES ARE NOT PENALISED.
Hi Mr.M.Lakshmanan
Thanks a lot, this is very informative, and it is right the authorities have to take corrective actions in order to reduce unnecessary paper work and litigation.