Steps to take if your TDS Is not deposited properly | Fusion - WeRIndia

Every deductor who deducts TDS from another’s income must deposit the tax with the Income Tax Department of India against the other person’s PAN (Permanent Account Number).

However, sometimes, the deductor may fail to deposit the TDS or might submit it against an incorrect PAN.

Here’s what you should do if your TDS is not properly deposited:

TDS (Tax Deducted at Source) aims to collect tax at the source of income. The payer must deduct TDS before paying the recipient.

This deducted amount should be remitted to the Central Government. The recipient can see the TDS credit in their Form 26AS or through a TDS certificate issued by the deductor.

The deductor must deposit the deducted TDS to the government against the recipient’s PAN.

After deduction, the recipient receives the remaining amount as salary or income. The TDS deposited online against your PAN will appear in Form 26AS.

You must regularly check your Form 26AS to ensure your TDS deposits are reflected. Ensure your employer has your correct PAN details.

If the PAN is incorrect or the TDS return is not submitted, Form 26AS will not show the deduction details.

Companies file TDS returns quarterly, usually one month after the quarter ends, except for the March 31 quarter, due by May 31.

Check Form 26AS 10 days after the filing due date to verify TDS reflection. If TDS is not reflected in Form 26AS, the employer did not deposit it or used an incorrect PAN.

You cannot claim a tax credit or get a TDS refund in such cases. Filing for a refund without the correct TDS credit may result in a notice from the Income Tax Department.

First, approach your employer to rectify the mistake. Although no specific timeline is given, it typically takes 30-45 days for the correction to reflect in Form 26AS.

If the employer does not act, file a complaint with your Income Tax Assessing Officer (AO).

Visit Income Tax e-filing services. Enter your PAN and mobile number. Then, enter the OTP received on your mobile. You will receive your AO’s details.

If needed, locate your employer’s AO and file a complaint with supporting documents such as salary slips, bank statements, Form 26AS, and Form 16 or 16A.

The Income Tax Department will conduct an inquiry and recover the TDS from the employer.

Ensuring proper TDS deposit is crucial to avoid issues with your income tax filings.

Regular checks and prompt action can help you maintain accurate tax records.

Image from Pxhere (Free for commercial use / CC0 Public Domain)

Image Published on February 23, 2017

Image Reference: https://pxhere.com/en/photo/819795