Few days Back one our reader(now Friend) Nitika Budiraja (IIT,Scientist) has also asked us what to do in such cases ?,we have done few exercises for her which are shared here under for the benefit of all.
- What is Mis matching in Form 26AS and Form 16/Form 16A,
- What are the reasons for Mismatching.
- What Should we Do
- Letter to Employer/ Deductor to correct their TDS/TCS return
- Letter To ITO CPC
- Preventive measures
1. what is Mismatching in Form 26AS and tax credit claimed
- Details of tax deducted on behalf of the taxpayer by deductors
- Details of tax collected on behalf of the taxpayer by collectors
- Advance tax/self assessment tax/regular assessment tax, etc. deposited by the taxpayers (PAN holders)
- Details of paid refund received during the financial year
- Details of the High value Transactions in respect of shares, mutual fund etc.
when assessee file his/her Income Tax return he/she claim tax credit on the Basis of TDS certificate or communication sent by the deductor for tax deduction ,However Form 26AS is prepared on the Basis of return filed by deductor to Income Tax Department. There are chances of differences in TDS claimed and TDS detail uploaded by the Deductor which is called mismatching of tax.
A.Incorrect/Non Filing of TDS return by Deductor/ Employer.
1.Deductor related reasons :
- Non filing of quarterly TDS statements
- Omission to include details of challan in TDS statement
- Quoting wrong CIN in challan details in the TDS statement
- Entering wrong amount in challan details
- Quoting of wrong TAN in the challan while remitting the TDS in the bank
- Quoting of wrong minor head in the challan while remitting the TDS
- Omission to include details of a deductee in the challan wise annexure in the TDS statement
- Non quoting of PAN of the deductee
- Quoting of structurally invalid PAN of the deductee
- Quoting of valid but non existent PAN of deductee
- Quoting of valid but incorrect PAN of deductee
- Entering incorrect amount in deductee details
- Error in the TDS amount claimed in the return
- Claim of inflated TDS credit in the return
- Bogus claimed as TDS credit in the return
- Erroneous cclaim of TDS credit in the return
- Amount paid / credited shown in the TDS certificate erroneously Claim of TDS credit pertaining to two years in the return of income for one year
- Quoting of incorrect TAN of the deductor in the return.
- Quoting of the TAN of the last DDO only in case of salary drawn from different DDOs during the year
- Credit for TDS claimed in a different PAN and status
- Credit for TDS claimed for an assessment Year other than the assessment year relevant to the year of deduction
If there Tax difference due to non reflection of Advance tax and Self assessment tax then you have to approach your assessing officer to correct the same (challan correction procedure is given here)
- For Assessement Year 2007-08 This view is further supported by Instruction No.6/2008, dated 18th June, 2008 whereby Assessing Officers were instructed that where the aggregate TDS claim does not exceed Rs 5 lakh, and where the refund computed does not exceed Rs 25,000, the TDS claim of the taxpayer should be accepted at the time of processing of returns; and in all remaining returns, the Assessing Officer shall verify the TDS claim from the deductor or assessee, as the case may be, before processing the return (Instruction was applicable for A.Y. 2007-08)
- Ay 08-09 http://www.simpletaxindia.net/2010/03/refund-ay-2008-09-without-matching-tds.html
- AY 9-10 http://www.simpletaxindia.net/2010/12/tds-matching-up-to-4-lakh-not-required.html
- AY 10-11 http://www.simpletaxindia.net/2011/02/refund-without-matching-tds-diff-up-to.html
- y 11-12 http://www.simpletaxindia.net/2012/02/tds-claim-without-matching-ay-2011-12.html
- Demand Notice
- Form 16/16A
- Form 26AS
- Order of refund adjustment of next Year (if any)
- Provide you Pan to Tax deductor like Bank ,Employer, principal immediately where tax is to be deducted on payment made to you.
- Fill your correct detail while depositing Self assessment Tax or advance tax Fill you pan correctly and check you tax payment receipt to confirm that bank have filled data correctly in computer.
- Check your Form 26AS periodically and contact deductor where there are any discrepancies.
- Before filing you Income Tax return for Assessment year 2012-13 please ensure that tax deducted by other and deposited by you has been fully incorporated in form 26AS. if not wait for few more days and before filing of return take necessary steps so that complete tax details reflected in form 26AS. Please note that due date to file last quarter return for TDS is 15 May,2012 so last quarter Tax can only be reflected in your form26AS only by 17 th May if not reflected earlier . So our advice is to file return only after Getting form 16/Form 16A from deductor and after confirmation of complete tax in Form 26AS for speedy refunds and painless return filing.Due date for filing of Income Tax return For Assessment year 2012-13 for non audit cases is 31.07.2012.