26AS Statement : How to Get Tax Credit for Non Reflected Amounts

Non reflection of TDS on bank FD or term deposit in 26AS statement is very common problem these days. The reason for this problem is very simple –the bank is deducting tax and even depositing the said tax , but the tds statement filed by them either does not reflect your name and PAN or wrong PAN is given. Therefore , the 26AS statement which is tax statement -does not reflect the amount as the said TDS amount was never reported by the bank .

26AS Statement sacrosanct for TDS credit

The department is publicizing that the persons filing the return of income should check your tax credits in 26AS statement before filing IT return for faster processing and quick refunds. Following advisory is on the income tax department’s efiling site

Taxpayers are advised to verify the tax credits available in 26AS statement before filing the Income Tax Return. It will facilitate faster processing and quick refunds. In order to avoid the TDS mismatch i.e if your claim of TDS is higher than the tax credits available in 26AS statement, please contact the Deductor for filing of the correction TDS statement.

 Thus, when the CPC or A.O processes your return finds that the tds as per your claim is not  reflected in the departmental processing software , they do not allow the TDS credit . Consequentially ,either your refund claim is reduced or a demand is generated . This is for no fault of your !  

Ways to Get TDS reflected in 26AS Statement

As for the assessment year 2011-12 , CBDT has already relaxed the condition by issue of CBDT instruction no 2/2012  for allowing TDS credit while processing the income tax return for assessment year 2011-12  which are not reflected in 26AS statement under certain conditions. However, in most of the case , this instruction will not suffice.

Since the origin of problem is directly linked with the callousness of the bank official ( read managers) , unless they are compelled to take corrective steps , the problem of TDS credit can not be solved. So here are the steps to be taken for getting the bank manager to submit a revised TDS statement showing your TDS . If he submit revised TDS statement, the 26AS of your will show the amount of TDS automatically.

Step 1 Write to Bank Manager: 

Write a letter to bank manager , informing him that 26AS is not reflecting the TDS amount fro which TDS certificate is issued by him.  Therefore, the bank manager should be requested to upload the TDS statement with the Name, PAN and TDS amount as per TDS certificate. Give a copy to the boss of the Bank Manager .

Step  2: Write to Bank Ombudsman & CIT (TDS) 

After one month , if nothing happens, file an application with Banking Ombudsman with your  grievance about non reflection of TDs in 26AS and consequential non allowance of td credit by assessing officer. You can get the address of the banking Ombudsman from here.

Additionally ,  you should write a letter to CIT(TDS) of your city.To know the address of CIT (TDS) either approach the main income tax office or ask any CA or tax practitioner.  A sample  letter to CIT (TDS) regarding your problem is given below :

To

The CIT (TDS)

……………

Sir,

                              Sub:  Non credit of TDS on account of non filing of TDS statement

                              Ref” Asst Year………………..

I have filed / to file return of income  for aforesaid assessment year . I have claimed TDS credit for Rs …………out of which TDS of Rs…………………was deducted by the Bank manger of XYZ……….Bank having address ………………. The bank manager has issued tax deduction certificate for Rs ……………..

However, when I checked for 26AS statement , the said amount of TDS claimed to be deducted by the Bank Manager , is not reflecting in 26AS. I have already requested the Bank vide my letter for filing revised TDS statement vide my letter dt ……….(copy enclosed) . Nothing has been done as I have checked the 26AS statement few days ago and it is still not reflected therein.

Since , the TDS statement is a requirement under section 20o of the Income Tax Act and the procedure for filing such statement is given in Rule 31A of the Income Tax . Your kind attention is drawn to Clause 4 of the Rule 31A , which is clear about the duty of deductor to provide PAN , Name and amount of TDs related to deductee .The said  sub clause is as under :

(4) The deductor at the time of preparing statements of tax deducted shall,—

(i) quote his tax deduction and collection account number (TAN) in the statement;

(ii) quote his permanent account number (PAN) in the statement except in the case where the deductor is an office of the Government;

(iii) quote the permanent account number of all deductees;

(iv) furnish particulars of the tax paid to the Central Government including book identification number or challan identification number, as the case may be;

(v) furnish particulars of amount paid or credited on which tax was not deducted in view of the issue of certificate of no deduction of tax under section 197 by the Assessing Officer of the payee;

(vi) furnish particulars of amount paid or credited on which tax was not deducted in view of the compliance of provisions of sub-section (6) of section 194C by the payee;

(vii) furnish particulars of amount paid or credited on which tax was not deducted in view of the furnishing of declaration under sub-section (1) or sub-section (1A) or sub-section (IC) of section 197A by the payee.

Thus ,  the bank has not followed the Rule 31 of the Income Tax Rule and  because of that the problem of tax credit is being faced. Since , the CIT(TDS ) is an authority and custodian of income tax law ,  I request you to   help this tax payer by taking appropriate steps and direct the bank manager to do the needful so that I can get Tax Credit.

Enclosure : as above

Yours faithfully,

XXXXXXX

Copy: The Bank Manager : For his kind information