Powerless to Claim Credit of TDS from Your Bank? Reason Here

From this point, the institutions like banks can find out the TDS (Tax deducted at source) at a higher rate of 20% on the interest you have gained on the deposits. As you had furnished TDS upon the interest income you need to get it managed for your overall tax liability. Indeed if the tax cut was more than your tax liability then you can avail of the refund. The assessee shall need to show pre-tax or gross, ITR and the credit for the tax furnished shall need to be taken separately.

But you might face hardships in availing of the TDS credit as it will not get shown on your Form 26AS as you shall not file your PAN through your bank. The TDS return furnished through the bank shall mention, “PAN not available”.

Tax expert stated that "Any person deducting TDS, including banks, needs to know the PAN (and Tax Account Number or TAN) of the person whose TDS is being withheld and paid. The deductor has to submit a quarterly statement (TDS Returns) of whose TDS has been deducted and paid and quoting the correct PAN/TAN of all such persons."

Moreover, he said "The income-tax system then collates all the information from all the TDS Returns filed and credits TDS based on the PAN details provided. Now, if the banks do not have your PAN, or have incorrect PAN, although they will deduct TDS and pay it, the TDS Return will not show your correct PAN, and therefore the system will not be updated with that TDS credit against your PAN," he further explained.

He commented you shall therefore pose a problem availing the credit since the system shall not be upgraded. It is similar to the individual who is furnishing you with the money that has your wrong bank account number. They might try and transfer the money however it does not go into your account.

The only method to avail of the credit is through renewing the true PAN with the bank and urging them to file the TDS returns.

Comments

GST: Assessees Must E-file Their Tax Returns by 30th Nov 2024 to Claim Pending ITC

If you are a GST-registered assessee you need to consider the due date to avail of any due Input tax credit or revised errors/omissions for the FY 2023-24 is November 30, 2024, via submitting the appropriate GST forms. Missing the due date can produce an outcome of a financial loss as the unclaimed ITC could not be used to offset your output tax obligation. What is the Method to Claim the Due ITC or Revised GST Errors for the FY 2023-24 It was stressed by the tax experts that the GST law specifies the procedure to claim the due ITC via GSTR-3B and amend errors in GSTR-1. Filing GSTR-1: Errors induced in GSTR-1 can be rectified by making amendments in the following GSTR-1 filings. Filing GSTR-3B: Via the GSTR-3B return the obligated ITC can merely be claimed. November 11, 2024, was the due date to submit the GSTR-1, and November 20, 2024, is for GSTR-3B without any penalty. Both the outcomes can be provided till November 30, 2024, as per the late fees. R...

How ITR Software Assists Individuals in Filing Tax Returns

Every assessee's process of income tax return (ITR) filing is significant, as it contributes to Indian's economy. The Income Tax Department has made efforts to facilitate this approach in recent years, but numerous people still see themselves steering a difficult financial system, multiple tax deductions, miscellaneous exemptions, and changing tax laws. This complexity can turn what must be an easy task into a significant challenge. In this context, income tax software evolves into an important partner, presenting a useful variety of accuracy, efficiency, and reassurance. The software enables return filing that permits taxpayers to handle their financial responsibilities when complying with the law. 1. Accurate Tax Calculations An incorrect income tax calculation of taxes could result in messages from the Income Tax Department or missed refunds. The tax software helps in finding taxable income and tax deductions that you may be allowed, like insurance or home loans. The co...

Why Small Firms Should Consider Gen Payroll Software?

Businesses in this competitive era would be required to manage the payroll. Payroll software has multiple operations such as paying employees, following tax laws, managing employee benefits, filing important documents, and keeping accurate records. Businesses that manage tasks manually or with spreadsheets can result in inappropriate compliance and issues, wasting time in doing operations. Gen Payroll software arrives to manage payroll with accuracy and resolve the issues that come therein. The merits and demerits of Gen Payroll software are mentioned below. Gen Payroll Software Gen Payroll is a payroll management software made by SAG Infotech . It eases and automates the process of payroll. The software’s features are tracking employee attendance, calculating salaries, ensuring compliance with laws like PF (Provident Fund), ESI (Employee State Insurance), and TDS (Tax Deducted at Source), as well as generating payslips. Businesses, whether small or large, can use this software. ...

SAG Infotech: Need Tax Software (Call 0141-4072000)

Search This Blog