Form 26AS, its worth the effort, check it!

This article is primarily meant for interest earners wherein they earn interest income from Fixed deposits and etc. other interest bearing instruments.

While putting money in Fixed deposits and etc. other interest bearing instruments, quite some number of us do not give a duly filled and signed Form 15G for lower/non-deduction of Tax Deducted at Source (TDS) from the interest income wherein we expect that our income from interest and other sources is going to remain below the Taxable quantum.

As a result TDS is deducted by the respective institution and is deposited to our credit with the Income Tax department. Here comes Form 26AS wherein TDS deducted and deposited to our credit appears and we need to check it!

Why?

Because, thinking that our income is below taxable quantum, if we do not file our Income Tax Return then we will not be able to get back the TDS which was deducted and deposited to our credit. Thus, one must check Form 26AS on regular basis and see if any TDS credit is there, if it is there then irrespective whether one’s income is taxable or not, one must file an Income Tax Return in order to claim refund of TDS deducted.

Example:

I have an Interest income of INR 2,00,000/- from Fixed deposit in a Bank wherein TDS of INR 20,000/- was deducted and deposited, by Bank, to my credit. Thus, when I checked Form 26AS then a credit of INR 20,000/- was appearing on account of TDS on interest income.

Now, though for F.Y. 2014-15, my income of INR 2,00,000/- is below taxable limit but still I should file the Income Tax return so that I can get back the TDS of INR 20,000/- in my Bank account since my income is below the taxable quantum.

Thus, post duly filing my Income Tax return, I will get the refund of INR 20,000/- in my Bank account very soon.

Hence, Form 26AS, check it!

Regards,

CA Sahil Jolly

Jolly & Co. Chartered Accountants