Verify TDS Deducted, Advance Tax Online Before Income Tax Return Filing

With just two weeks left to file the income tax returns, many taxpayers are busy making their final calculations, visiting their tax consultant and filling up the returns form. Before filing the tax forms, you need to deposit the balance tax due and interest, if any. This amount is based on your tax liability for the year, after taking into account advance tax paid and tax deducted at source.

Of late, the scope of tax deduction at source has been increased and includes salary, rent, interest, professional services etc. So, while preparing the tax returns and calculating the tax liability, you should take into account the tax amount already deducted on your behalf. Now, an easy way to do this is to refer to the 26AS statement. This statement is accessible on the NSDL site and is also available online on the websites of many banks.

According to a recent advice issued by the Income Tax Department, taxpayers should review their 26AS statements to check whether all the TDS deducted is appearing against their accounts or not. This would facilitate faster processing of refunds, if any.

Tax credit statement

The Income Tax Department facilitates a PAN holder to view its tax credit statement (Form 26AS) online. Form 26AS contains details of tax deducted on behalf of a taxpayer by deductors, details of tax collected on behalf of a taxpayer by collectors, and advance tax, self-assessment tax, regular assessment tax etc deposited by a taxpayers.

It also has details of refunds received during a financial year and details of high-value transactions involving shares, mutual funds etc.

A Form 26AS is generated wherever a valid PAN is furnished in a TDS statement.

Accessing Form 26AS

The tax credit statement (Form 26AS) can be accessed in these ways:

IT website

You can view your tax credit an https://incometaxindiaefiling.gov.in, and those who are registered on this site can view the Form 26AS by clicking on ‘View Tax Credit Statement (From 26AS)’ in ‘My Account’. The facility is available free of cost.

Bank website

You can view it on a bank’s website through the Internet banking facility. The facility is available to a PAN holder with an Internet banking account with any authorised bank. Form 26AS will be available only if the PAN is mapped to that particular account. The facility is available for free of cost.

TIN website

This facility is available to a PAN holder whose PAN is registered with the Tax Information Network to view of Form 26AS. The PAN holder has to fill up an online registration form for the purpose. Then, verification of the PAN holder’s identity is done by the TIN facilitation centre personnel either at the PAN holder’s address or at the TIN facilitation centre that has been chosen by the PAN holder. The verification involves a cost at the prescribed rate. Once authorised, the PAN holder can view his tax credit statement online here.

Credit confirms tax deducted

The credits in the tax statement confirm that:

The tax deducted by the deductor or collector has been deposited with the government The deductor or collector has filed the TDS/TCS statement accurately giving details of the tax deducted or collected on your behalf The bank has furnished the details of tax deposited by you accurately

TIN system

Every entity that has deducted or collected tax at source is required to deposit the tax with the government through a bank. A bank will upload this payment-related information in the TIN central system. The deductors are also required to file a quarterly statement with the TIN giving details of their TDS/TCS.

The TIN central system will match the tax payment related information in the statement with the tax receipt information from the bank. If they match, the TIN will create a comprehensive ledger for each PAN holder giving details of the tax deducted or collected on the basis of every deductor who has filed a statement.

In future, you will be able to use this consolidated tax statement (Form 26AS) as a proof of tax deducted or collected on your behalf, and the tax directly paid by you along with your income tax returns, after the need for submission of TDS/TCS certificates and tax payment challans along with income tax returns has been dispensed with by the Income Tax Department.