I Got Income Tax Notice #tax #law #finance #education

🚨What if TDS does not show in Form 26AS? 🔸If tax deducted by the payer is not visible in this tax passbook, it would mean that the payer has either not paid the taxes to the central government or, after…

I Got Income Tax Notice #tax #law #finance #education

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🚨What if TDS does not show in Form 26AS?

🔸If tax deducted by the payer is not visible in this tax passbook, it would mean that the payer has either not paid the taxes to the central government or, after payment, the deductor has not filed the TDS statement/TDS return with the income tax department. In both situations, credit of TDS is disallowed by the tax department and a notice of tax demand is issued to the taxpayer.

But don’t worry, we have Law to protect us😎

🔸Section 205 of the Income-tax Act prohibits recovery of tax from a taxpayer if tax is already deducted from his income by the deductor. A person cannot be called upon to pay tax if that tax was deductible from his income and such tax has been deducted.

⭐️So what to do?

➡️If the taxpayer finds that Form 26AS does not show the full TDS deducted from his/her income, he should contact the deductor for such a mismatch. The TDS credit mismatch may be due to the following reasons :

(a)TDS is not deposited with the government.
(b)TDS is deposited, but the TDS statement is not yet filed with the tax department;
(c)The deductor has quoted the wrong PAN in the TDS statement; or
(d)An incorrect TDS amount has been mentioned in the TDS statement.

These mistakes can be corrected by the deductor only. Thus, the taxpayer should ask his deductor to correct the mistake at the earliest and make sure that same is corrected before filing of ITR.
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