Merely paying taxes and reading the TDS statement issued by employer doesn’t mean your task is done. One needs to cross-check the information under the Form 26 AS or the Annual Tax Statement to ensure credit of the taxes deducted under your PAN. If all the taxes deducted and paid aren’t mentioned then corrective measures should be taken to avoid demand notices from the Income Tax Department.
Couple of years ago, NSDL operated Tax Information Network, on behalf of the Income Tax Department, would email the Annual Tax Statement to the registered taxpayer’s email address. Of late the taxpayers aren’t issued the statement directly. But this doesn’t mean you need not keep a tab of the statement.
One needs to check the Annual Tax Statement online.
This statement also called the Form 26 AS spells out the tax deducted or paid to the income tax department throughout the financial year. So, tax deducted by your employer or client or a bank for fixed deposit is mentioned in the Form 26 AS. Apart from these, the self-assessment tax paid by you finds mention. High value transactions at banks, through credit cards or sale of assets too would reflect in your Form 26 AS.
It is essential to verify this document as a tax demand notice may be raised against you, even if you have paid taxes. This may be due to mismatch of PAN mentioned by your tax deductor or even failure by the deductor to pay taxes to the government.
The responsibility to ensure that the taxes deducted from you are deposited to the government rests on you. Else you won’t get the tax credit unless your Form 26 AS mentions the amount.
One can check the Annual Tax Statement by registering for the Income Tax Filing website https://incometaxindiaefiling.gov.in . You simply need the PAN and date of birth to register. Once you register and login to the website, you can see your “Tax Credit Statement” under the My Account section.
You need to look at the statement for the correct Assessment Year(AY), which is nothing but a year ahead of the financial year (FY) in which the taxes have been paid. So, the taxes deducted in FY 2013-14 would be reflected under the tax credit statement for AY 2014-15.
If you find that taxes have been deducted but do not reflect in your Form 26 AS, then you should contact the deductor and ask him to make the necessary corrections or file a revised TDS return.
Act now as non-credit of taxes paid to eat into your current year or future refunds too.
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