A lot of us know what TDS is. For those who don’t know, TDS is tax deducted at source. It is basically the tax that gets discounted from salary of the employee against PAN number and gets deposited to the government.
After deducting TDS, employers issue Form 16 at the end of the financial year. This form is the statement of your salary and the taxes paid. The deducted amount gets deposited by the employers quarterly.
TDS has become a buzzword these days as the tax department has uncovered a scam worth Rs 3,200 crore , in which it was revealed that around 400 companies were substracting the tax from their employee’s salary but were not giving the money to the government. The money was instead being used for business or personal interests.
As an employee, you may feel that once the tax has been deducted the responsibility of where the money goes rests in the hands of your employer and you may not be accountable. However if the money is not going to the government, you may also be in problem. A notice will be issued to you from the Income Tax department for inconsistency in Form 26As and Form 16. So we must ask : How can I check whether my money is going to the government or not?
TDS is stated in employee’s salary slip and you can check it from there. Form 26 As reflects information about TDS, total tax deducted, tax collected at source, refunds, and advance tax. So the form tells you about TDS that has been deducted and given to the government. TDS is linked to your PAN, so you can check whether it has been deducted and can be verified through Form 26AS.
Checking TDS deductions:
- Visit the income tax e-filing website
- Login to the website using username and password
- Click on “View Form 26AS” showing on the right. You will get redirected to TRACES site
- Click on Tax Credit to download Form 26AS.
- PAN holders operating netbanking account can download form 26As. Login to your bank’s website and click on “View Form 26As”
- Taxpayers can update their mobile numbers in the e filing account to receive sms alerts regarding information about TDS deposited.
- Also make sure that correct PAN number is given to the employer. Any changes should be informed to the employer so that a revised Form 16 may be issued.