One of the major issues of concern for the taxpayers is the non-credit of TDS for the online platform, named as Form 26AS. Despite the assessee furnishing before the Assessing Officer and TDS certificate issued by the deductor, there was evidence of TDS mismatch in many cases.
It happens frequently that number of assessees approach the Assessing Officers for the mismatched tax amount while submitting their TDS certificate forms with requisite details and particulars about tax deduction. CBDT, the Indian governing body for direct tax payment has decided to verify whether or not the proper amount of payment has been deposited by the deductor to the TDS account of Indian Government. This is an effective approach for preventing TDS mismatch and paying the credit money to the assessee.
CBDT also allows the Assessing Officers to verify and authenticate the correct value for the mismatched TDS. The instruction provides absolute liberty to them for issuing notice to the faulty deductors and compelling them to submit the statement of file correction as per the established procedure.
This new move by CBDT is widely accepted by the taxpayers, as it promises to bring justice, which was so far beyond reach for the lack of clear procedures. The foundation of this instruction can be related to the case of Own Motion versus UOI and Ors. (dated 14-3-2013), held in Delhi High Court. The court has declared the verdict with seven mandamuses for necessary actions to be adopted by Income Tax Department of India. One of the important remedies recommended by the court was regarding the non-credit of TDS to the taxpayers because of TDS mismatch, despite the assessee submitting TDS certificate issued by the deductor before the Assessing Officer.
The CBDT instruction clearly states about the manner in which the TDS claims are to be credited to the tax-payers’ accounts, while clearing the backlog for pending returns. There are also residuary clauses in the instruction for the specific TDS disputes, where the refund amount could not be decided easily. For these cases it is clearly mentioned that the ‘TDS credit shall be given after due verification’.
Responsibility of taxpayers in the light of aforesaid CBDT instruction?
- Tax payers should E-file their tax returns only after properly matching and verifying the tax deducted at source on the Income Tax Department Portal, popularly known as Form 26AS.
- In case of any mismatch of tax deducted at source, taxpayers should ask the deductor for the proof of payment of taxes with respect to the TDS deducted.
- Tax Payers should also check with the deductor if the TDS return has been filed properly with the details of tax payers, for instance PAN numbers. It has been noted that many times correct TDS credit is not provided due to wrong information in the TDS return forms.
The taxpayers should remember the above-mentioned points while filing their income tax returns. These documents might come in handy later, when Assessing Officer asks for the same during the assessment of TDS. It is best to collate the documents from before, as it might be difficult to collect everything at the last moment.
About Author: Taxmantra.com was founded by Alok Patnia, who has profound knowledge and understanding about new business startups and ITR filing by individuals and business organizations. He has many years of experience in business maintenance service sector. His expertise includes service tax, company law compliances, auditing, accounting and similar fields.
Thanks for reply giving.Sir ;I have submitted my indemnity bond;one year back;and TDS certificate attested by my college principal;my DDO for TDS mismatch and send earlier details to CPBangalore on line and went to e-nivaran on line and my filled return shows refund of 3000Rs without matching 26AS Traces;CPC referred my case to my jurisdictional ITO,but even after filing indemnity bond and attested tds,no decision,many people of teachers college suffers from TDs mismatch,and ITO clerk wants original TDS.Kinly let me know its solution.Thanks.
Grr…sad to hear your trouble.
Do you want to raise it on social media twitter/facebook account?
You can also raise Grievance on income tax website. See the video How to submit Grievance in tax website
You can also call on the numbers on Grievance Addressal Mechanism webpage here and see if helps.
Let us know your status.
Is it mandatory to submit my original TDS to my AO for TDS mismatch or attested copy of my TDS?
Submit attest copy of TDS.
Take original to show.
Typically this rule is to be followed for most of the official documents.
Thanks for the suggestion.
10 Moves that make Income Tax Department more friendly.
More info@ https://www.moneydial.com/blogs/10-moves-that-make-income-tax-department-more-friendly-to-tax-payers-like-installing-cheque-deposit-machine/
Actually, the same case happened to me.
I think income tax has a software called ITD, in which they have different mechanism for TDS Credit match. In case of one of my client, his 26AS was appearing proper TDS Credit but their software was not able to verify the same.(their software was showing much lesser than 26 AS).
The AO said(at that time) we can’t do anything in this.
I think, with this judgement, we can have a proper base in talking to him.
thanks alok 🙂 and ofcourse Kirti Desai
Actually, the same case happened to me.
I think income tax has a software called ITD, in which they have different mechanism for TDS Credit match. In case of one of my client, his 26AS was appearing proper TDS Credit but their software was not able to verify the same.(their software was showing much lesser than 26 AS).
The AO said(at that time) we can’t do anything in this.
I think, with this judgement, we can have a proper base in talking to him.
thanks alok 🙂 and ofcourse Kirti Desai