Form 26AS clarification needed

TDS 419 views 9 replies

Harishkumar Pathangay

12 Points Joined August 2020

Hi,

My Bank is saying for FY19-20 the TDS threshold limit is raised to 40,000. So the transaction about my FD and interest paid is not reflecting in the Form 26AS since TDS is zero.

I am saying to them that no. it is not the case. Even if TDS is zero, Bank should still report the transaction as TDS zero. There is no point in hiding that information even if TDS is zero.

Form 26AS should contain the details irrespective of TDS threshold limits.

I do not know correct answer. Hence reaching for the experts in the forum to help me out.

thanks in advance.

Replies (9)

Akhil

Student CA

1005 Points Joined July 2013

I think ther is no mandatory to show intrst in 26as even if tds is not deductable....

jacinthamary

accountant

888 Points Joined January 2017

They will show only if the interest paid is above the threshold limit. If interest paid is below threshold limit they will report only when TDS is done.

CA Raj Doshi

Practising CA

8944 Points Joined December 2013

It is not mandatory to report interest with Nil TDS

Harishkumar Pathangay

12 Points Joined August 2020

Hi,

I am thinking in different way.

I see form 26as as a helping tool when I file my returns. If I have 10 FDS in different banks with each providing me interst of 35000. Then I have taxable income when looking at it consolidated.

For me it will be helpful as a tax payer to double check my consolidated interest earnings with my list of fd I maintain myself.

I do understand that the onus of declaration of income is on tax payer, but will it not be helpful to record those under threshold transactions for helping the tax payer see a consolidated status before filing his returns.

I am not a financial expert but I am just looking for any errors that as a tax payer I can forget, but still form 26 as will be a good reminder to me right.

I am also still surprised why the system is not that way.

Please let me know your inputs on this too.

jacinthamary

accountant

888 Points Joined January 2017

Well. In future if tax payers use this to evade paying tax, may be the rule will change.

CA Raj Doshi

Practising CA

8944 Points Joined December 2013

Currently, the law does not mandate such reporting. So its upon the banks to decide. Many progressive banks do report. There is nothing which can be done currently.

Harishkumar Pathangay

12 Points Joined August 2020

This is what I don't understand.

Even yesterday there was announced that various additional transaction including school fees, hotel expenditure coming under the ambit of form 26 as.

But currently we have a loop hole and we dont want to fix that.

Reforms should really help people and complicate tax filing.

CA Raj Doshi

Practising CA

8944 Points Joined December 2013

Sir. You actually are exploiting a loophole by investing in a way that your TDS is not deducted. Please introspect first before talking about loopholes.

The Government has been grateful in increasing the threshold from 10K to 40K to help senior citizens and also not to forget Sec 80TTB.

Harishkumar Pathangay

12 Points Joined August 2020

You completely misunderstood me.

Ido not plan to invest money in crooked manner.

I am just raising a concern as a genuine tax payer. In fact this is the first year I am facing this issue, because I lost job and rely only on FDS. Which are in only 2 banks.

Out of which one bank said about the threshold limit.

That's why I raised concern. If something can help a tax payer then it is always welcome only.

I donot want to evade tax by crooked fd schemes or clever investments.

That's not the intention of my concern.

Any ways let's close the thread. As of now I take the clarification that it is not mandatory for the bank to report transactions with tds threshold under 40000.

Thanks for that clarification.

Please consider thread closed.