What To Do When Your Tax Credit Does Not Show Up

What if the TDS (Tax Deducted Source) has gone out from your account but the deduction fails to show up on your Form 16A?

How TDS Works

• Employer on deducting the TDS must deposit it with the government or the Income Tax Department.

• On making this deposit, your employer must furnish Form 16/Form 16A (quarterly and annual statement of your income and TDS).

• Only your employer or deducting agency can issue this form.

• Form 26AS reflects whether the TDS deducted from your account by your employer or client has been deposited with the government. If this has not happened, discrepancy is likely between the TDS amount mentioned in your Form 26AS and Form 16/Form 16A.

. Important things to know about Form 16/16A so you do not miss out on tax credits

• Under Section (203) of Income Tax Act, if there is a tax deduction in the name of the employee, then it is compulsory for the employer to furnish Form 16. The only condition under which the employer can refuse to provide Form 16 is, if there has been no TDS deduction at all.

• The employer must issue Form16 before 31 May after the given financial year ends.

• On failing to do so, he may have to pay a penalty of Rs.100 each day after May 31 till the form is issued to the employee.

• If nothing helps, you can reach out to your accessing officer, who supervises your IT Returns and put in a written complaint against the employer.

• If TDS has been deducted but not deposited by the deducting agency, the onus of bridging the difference in your Form 16/16A and Form 26SA will not be on you as the tax payer.

• Keep copies of proofs of TDS deduction like pay slips, bank statements, communications with employer or client etc.

• Make sure the PAN number provided to the employer is correct.

The minimum term for a Tax Saving FD is 5 years. You can obtain a tax exemption of utmost Rs. 1.5 lakh. Calculate returns using FD Calculator.

Investor can claim a deduction of 1.5 lacs by investing in tax saving fixed deposit.