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Tracking the TDS

Neha Pandey  |  Mumbai 

Income payers who come under the Rs 5 lakh income category and haven’t had to file returns for financial year 2011-12 would be wondering how to keep track of taxes (deducted at source) paid by their employers.

The Central Board of Direct Taxes (CBDT), in its circular, had mentioned that those assesses would get this benefit “provided the TDS (deducted at source) deducted by the employer was submitted to the government”.

In other words, there has to be a paper trail of the TDS paid to the government. For such people, the answer is keeping a track of their Form 26AS. This form records the tax payments made by individuals or companies, on behalf of individuals.

Compiled by the Tax Information Network (TIN) for the income tax department, it includes details about advance taxes paid, refunds received, TDS and taxes collected at source during the financial year. This can be viewed online, on the National Securities Depository Ltd’s TIN website or on your net banking account. However, there could be situations when the TDS may not reflect in Form 26AS.

“Even if it does not reflect in Form 26AS, taxpayers need not worry. Employers provide Form 16, where the payment of TDS gets reflected,” says chartered accountant Sandeep Shanbhag. You can produce Form 16 in case of any enquiry. In fact, some employers also give TDS details on the salary slip.

For a TDS certificate on interest income on savings bank accounts or fixed deposits, you can ask your bank for a certificate or Form 16A.

Remember, banks can tax you to a maximum of 10 per cent on interest income. Therefore, those who fall in a higher tax bracket should inform their employer about their provisional interest income in a financial year and pay additional taxes, accordingly.

According to Sudhir Kaushik, co-founder and CFO of, it is often seen that employees provide a wrong permanent account number (PAN) to their employer. Or, a wrong PAN is fed into the system due to a typing error. As a result, it never shows in your account. This may result in TDS getting debited in some other PAN holder’s account. “In such a case, update your employer to file a revised TDS return,” Kaushik says.

At times, employers do not file the TDS on time and the taxpayer gets a default circular from the I-T department. In such circumstances, the assessee has to show that he paid the TDS but the employer had not deposited it. At other times, non-disclosure by the taxpayer can lead to a default circular. Here, he/she will need to pay a penalty on the amount due, at one per cent a month.

This form is no substitute for the advance tax, Form 16 and TDS certificates that one needs to attach while filing his/her income tax returns. It is of use when you haven’t received your TDS certificate. The details uploaded on the form help you check your tax liabilities and to rectify errors. An error in the amount of TDS can be brought to the notice of the employer or the bank for requisite changes, saving you from paying a penalty.

First Published: Thu, September 15 2011. 00:41 IST