If you are a salaried person, you must have surely come across the term TDS. TDSstands for tax deducted at source – the tax that is deducted from your salary by your employer and paid to the government against your Permanent Account Number (PAN).
After TDS, the employers issue the Form 16 to you, which is your salary or income certificate and contains details of income and taxes paid. Employers deposit tax deducted at source on a quarterly basis, and usually Form 16s are issued after the end of a financial year.
The term TDS is hogging headlines as the Income Tax Department recently unearthed a scam where 447 companies were deducting taxes from their employees but not depositing the amount with the government and instead diverting them for personal or business interests. The scam worth Rs. 3,200 crore comes in the wake of various banking and financial scams that have rocked the country recently.
Since TDS is deducted at the source, employees normally don’t worry about it. However, as an employee you may land in trouble if the TDS is deducted but not deposited with the government. You will get a notice from the I-T Department for discrepancies in Form 16 and Form 26AS. This brings us to the question: how as an employee can you check if your TDS has been deposited and that there’s no mismatch in details?
To save you from trouble, we present a step-by-step guide. You don’t need to wait for your Form 16 to see if it matches with the details in Form 26AS. The TDS deducted is reflected in your salary slip and can be checked there.
Form 26AS contains information about deducted tax, details of tax deducted at source, tax collected at source, details of advance tax, refunds, and high value transactions deducted on behalf of the taxpayer.
In simpler terms, the form indicates the TDS deducted from your salary and deposited to the government against your PAN. Since the TDS deposited is linked with your PAN, you can easily check if it has been deducted and verified through Form 26AS.
How To Check TDS Deduction:
* The TDS deducted can be checked quarterly by visiting the income tax e-filing website.
* Login to the income tax filing website using your login and password.
* Click on the View Form 26 AS tab on the right. This will direct you to TRACES website.
* To download the Form 26As from the TRACES website you have click on Tax Credit (Form 26As option).