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Excess income and deduction shown in 26 as

Siddharth (Thinker) (267 Points)

13 August 2015

Hi, In my 26AS, my bank has shown interest income of Rs.182000 and TDS 18200. But my actual interest income for the year is Rs.14000. It is a mistake on the Bank's part. What procedure should I initiate in this condition and how should I complete my Income Tax Return?? Pls advice.

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8 Replies

CMA Poornima Madhava (CMA) (13097 Points)
Replied 13 August 2015

Pls contact ur bank, it could be some mistake from their end which can be corrected. It is better to wait till the correction is done for filing of ITR.

Udgam Koomar (Tax Technologist) (1949 Points)
Replied 13 August 2015

Please ask for form 16A certificate from bank and fill return according to it

S. Shiroor (Others) (1207 Points)
Replied 13 August 2015

Banks give their TDs work to a CA. Since they have to give xtra money to them for corrections etc they are lethargic in giving this . you have to relentlessly follow with a letter and proper acknowledgement.

Once you file ITR late you may not be able to revise it but you can rectify it that is wrong fig of TDS wrong Tan nos etc. There is a large diff betwen bank fig and yours. you need to go to bank and point out in writing. If you have enough tax credits then you should take a call whether to file ITR.

venugopal tiwari (ca) (34 Points)
Replied 13 August 2015

just file return on factual data they will process the return eventhough data in form 26as is different in your case ,as there is a excess tds amount reflecting in your form 26AS

Siddharth (Thinker) (267 Points)
Replied 14 August 2015

Okay.. Thank you everyone..

S. Shiroor (Others) (1207 Points)
Replied 14 August 2015

I found that this is a problem with system generated interest with almost every bank.

You have got Rs14000 as interest in FY 2014-15 You should claim Rs 1400 TDS out of rs18200.

when you file the return for AY 2015-16 [Fy 2014-15] and carry forward the rest to next year. If spouse is involved you should put your spouse's share/joint account share also. The difference of [18200 -1400] will be credited as TDS for Ay 2016-17. Again if you have received the actual amount less in Fy 2015-16 TAKE 10% of the actual amount recieved as TDS and carry forward the rest to Ay 2017-18.

This is bcoz of difference between cash and mercantile method of accounting.

You will take income on actual recipt basis but bank calculates according their computer software.

If the mistake is due to Human punching error you need to go to the bank and point out the mistake in writing and take acknowledgment [this is important].

I hope i am correct. Experts should correct me if I am wrong

Shiroor

Structural Consultant for design of Bridges.

Z ( ) (2960 Points)
Replied 14 August 2015

If the income accrued is correct and the income as per your view is the income so received then I would like to cite a section

S.198. All sums deducted in accordance with the foregoing provisions of this Chapter shall, for the purpose of computing the income of an assessee, be deemed to be income received

So, if tax has been deduted on an income then that income is deemed to be income received and hence you should treat 182K as interest income instead of 14K.

(Its 14k and not 140k? difference seems huge)

If the difference is for some other reason then you request bank to make changes and altrnatively do take credit of full amount and you may utilize less , allowing carry forward of credit

S. Shiroor (Others) (1207 Points)
Replied 14 August 2015

Most probably assistant of CA of the bank has punched in wrong PAN. TDS return need to be rectified .

If you have actually [not acrued] recieved Rs10k and less in preceding years no TDS will be deducted. But just bcoz the interest was more than 10k this year , previous years income cannot be clubbed this yearby the bank unless it is acrued income.

Thanks Z for your inputs.