All about Form No. 26AS
One of the common question by new taxpayer is ,What is 26AS? What is the procedure for discrepancies in actual TDS and TDS credit as per Form 26AS? Can it be rectified ?
A taxpayer gets the credit of tax by of the following 3 modes only:
Income-tax Department maintains the transparent database of the total tax paid by the taxpayer (i.e., tax credit in
the account of a taxpayer).
Form 26AS is nothing but an annual statement maintained under Rule 31AB of the Incometax Rules disclosing the details of tax credit in the account of the taxpayer as per the database of Incometax Department. In other words, Form 26AS will reflect the details of tax credit appearing in the Permanent Account Number of the taxpayer as per the database of the Income-tax Department.
26AS will cover TDS, TCS and tax paid by the taxpayer in other forms like advance tax, Self-assessment tax, etc.
Income-tax Department will generally allow a taxpayer to claim the credit of taxes as reflected in his Form
What to do in case of discrepancies in actual TDS and TDS credit display as per Form No. 26AS:
Every person deducting tax at source has to furnish the details of tax deducted by him to the Income-tax
Department. The details will cover details such as the name of the deductee, Permanent Account Number of the deductee, amount of tax deducted, amount paid to the deductee, date of payment of TDS to the credit of
On the basis of the details of TDS provided by the deductor, the Income-tax Department will update Form 26AS of the deductee. Many times the actual amount of TDS and TDS credit as appearing in Form 26AS may differ and it may
happen that the TDS credit appearing in Form 26AS may be less as compared to actual TDS, this can happen due to reasons like non-furnishing of TDS details to the Income-tax Department by the deductor due to deducting the tax in incorrect Permanent Account Number, etc.
In such a case the deductee should first approach the deductor and request him to take the necessary steps to rectify the discrepancy due to above reasons. If still the issue remained unresolved then the taxpayer must intimate the fact to the Assessing officer with full fact. As of Now, there is no system in the CPC to deny the wrong credit available in 26AS of the taxpayer.
The Income-tax Department updates the TDS details in Form 26AS on basis of details provided by the
person deducting the tax (i.e., the deductor). Hence, if there is any default on the part of deductor like non – furnishing of TDS details (i.e., TDS return) to the Income-tax Department, deducting the tax in incorrect Permanents Account Number, etc. then Form 26AS will not reflect the actual TDS.
In such a case, the taxpayer may not be able to claim the credit of correct TDS. Hence, the taxpayers are advised to confirm the tax credit appearing in Form 26AS and should reconcile the difference, if any.