Finance Buddy

NEW DELHI: The income tax department will deny tax deducted at source (TDS) credit and flag your income tax return (ITR) if it detects any discrepancies between the TDS information reported in the ITR and the data provided by the TDS deductor.When a TDS deductor deducts the tax, they are required to file a TDS return, which the tax department then reconciles with the data reported. "It may be noted a taxpayer will not get a tax credit for tax deductions that are not reflected in the Form 26AS," said the income tax department, which means that if one has any outstanding taxes after filing the ITR, they will be required to pay the tax debt and won't be able to offset TDS credit that is not reflected in Form 26AS, according to the Economic Times report. For example, If the deductor makes an error in reporting the data, such as a bank deducting a certain amount as TDS on FD investment but failing to report it accurately in their TDS return, the income tax department will dis...

The tax department will flag your income tax return (ITR) and disallow tax deducted at source (TDS) credit if it detects any mismatch in TDS data reported by you in the ITR and by the TDS deductor. This is because when a TDS deductor deducts the tax, they need to file a TDS return, which the tax department reconciles with the data reported by you. For example, if you invested in FDs and the bank deducted Rs 10,000 as TDS, then the bank must report this transaction in their TDS return. If, for  any reason, the bank makes an error in reporting this data, then the income tax department will disallow your TDS claim and may even issue a tax notice for this. "It may be noted a taxpayer will not get a tax credit for tax deductions that are not reflected in the Form 26AS," said the income tax department. This implies that if you owe any taxes after submitting your ITR, you will need to settle the tax debt because you won't be able to offset TDS credit that doesn't show up in...