TDS deducted? Be careful if you are filing ITR only with Form 26AS

Nowadays, some taxpayers do not wait for form 16 or form 16A certificates. Some of the taxpayers submit an Income Tax Return with the details of form 26AS. But there is a chance of mistakes in TDS entry if any taxpayer files ITR only with form 26AS and doesn't tally form 26AS details with form 16 or form 16A.

What is TDS?

TDS or Tax Deducted at Source is income tax deducted from the money paid at the time of making specified payments such as salary, professional fees, commission, interest etc. As per this concept, a person (deductor) who is liable to make payment of specified nature to any other person (deductee) shall deduct the tax at source and remit the same into the account of the Central Government.

What is form 16, 16A, 16B, 16C and 26AS?

Form 16

Form 16 is the Salary TDS certificate. If your Annual Income from Salary is more than the basic exemption limit of Rs. 250,000, your employer deducts TDS on your salary and deposit it with the government. It must be issued by 15th June of the year for which it is being issued. For example, for FY 2020-21, the due date for the issue of Form 16 shall be 15th June 2021. However, sometimes this due date extends.

Form 16A

Form 16A is a TDS certificate on Income Other than Salary. Generally, form 16A shall be issued, when a bank deducts TDS on your interest income from Fixed Deposits, for TDS deducted on insurance commission, for TDS deducted on Professional or Technical Services. It must be issued by 15th June of the year for which it is being issued. For example, for FY 2020-21, the due date for the issue of Form 16 shall be 15th June 2021. However, sometimes this due date extends.

Form 16B

TDS Certificate for Sale of Property.

Form 16C

TDS Certificate for Rent of Property.

Form 26AS

Form 26AS is a statement which includes:

• Information on Tax Deducted on your income by deductors
• Details of Tax Collected by collectors
• Advance Tax and Self Assessment Tax paid by the Taxpayers.
• Regular Assessment Tax deposited by the Taxpayers.
• Details of Refund received by taxpayer during the financial year.
• Details of High value Transactions in respect of Shares, Mutual fund etc.

Due date of TDS Return

Generally, employer / deductor files TDS return quarterly and each quarter has respective due dates. However, the Due date of the last quarter (Jan- Mar) is 31st May. For example, for FY 2020-21, the due date to file a TDS return is 31st May 2021. However sometimes the due date extends. For example: In FY 2019-20, due date extended up to 31st July 2021, due to the Covid situation).

What happen if anyone Claims or Shows TDS in their Income Tax Return and file it before 31st May, 2021?

First of all, if a Taxpayer files TDS details in ITR with a TDS certificate (Form 16 / 16A / 16B / 16C) issued by Employer / Deductor, then it is ok.

But, if a Taxpayer files TDS details in ITR only with Form 26AS details before 31st May, then there is a chance of mistakes. If you check form 26AS in 'HTML view' then you can't find all details. But if you export form 26AS in PDF format, then you will get a detailed statement. Generally, for the last quarter, (Jan-Mar) TDS amount details are updated in form 26AS after 31st May. So, if you file Income Tax Return only with the TDS details of form 26AS before 31st May, generally you can't find all TDS deduction amount details. Therefore, you won't be able to show all TDS deduction details in ITR and won't be able to get full or actual amount refund (if refund arises).