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Find out if your Employer is Depositing your TDS with the Government

is employer depositing tds with government

Check the news these days & you will find one or the other scam being covered. It seems this is the season of scams. The latest tax scam unearthed by the I-T department is the one involving Rs 3,200 crore, where 447 companies deducted tax from their employees but did not deposit it with the government. You may take it as one of the other scams happening in the country which do not directly affect your life. But this is where you are making a mistake. If your employer commits the same crime, you could also get into trouble. This will happen because if your employer deducts tax from your salary but does not give it to the government, it will result in a mismatch between Form 16 & Form 26AS. To understand this mismatch of data, you need to understand how taxes are reflected in both the forms. Form 16 which is issued to you by your employer reflects the tax deducted by him from your salary. On the other hand, the Form 26AS reflects how much of the tax deducted from your salary was deposited with the government.

This mismatch of tax data can cause litigation. You can get a demand notice from the tax department because the department will assume that you have not cleared your tax liability. So, it is important to check your Form 26AS regularly to ensure that your taxes are being timely deposited with the government.

Responsibilities of employer

A company is required to deduct taxes regularly from the salary of their employees. It is required to deposit this tax to the government & file TDS return on a quarterly basis. The due date for filing TDS return by a company is one month after the end of the quarter. So, for the quarter ending March 31, 2018, the due date for filing the TDS return is May 31, 2018. Accordingly, your Form 26AS will be updated after May 31 by the tax department. Usually, the information from the TDS returns is updated within two days, but it is advisable to check it after the 10 days of the due date.

Checking Form 26AS

You can download Form 26AS from the TRACES website after logging into your e-filing account on the income tax website. It is a password protected statement (password to open the file is the date of the birth of the user) which he would have entered while registering with the e-filing portal. Form 26AS provides details such as the name of the deductee, PAN, details of deductor, amount of TDS deposited and so on. An individual also has the facility to download the Form 26AS using the Net banking facility of authorised banks.

Updating mobile number on the ITD website

The income tax department has started sending SMS to taxpayers providing information about the total TDS deposited against their PAN by the employer as well as the cumulative TDS deposited for the financial year. Therefore, make sure that your correct mobile number is updated in the department’s records. You can update your mobile number on the e-filing website of the income tax department under the profile settings.

Matching Form 26AS with Form 16

It is important that you cross-check your Form 26AS with the TDS certificates and Form 16/Form 16A during the year as well as at the time of filing of returns. If there are any discrepancies, you must inform the tax deductor immediately to make sure that necessary steps are taken to rectify the mistake. As an employee, it is their duty to provide PAN details to your employer. In case of non-availability of PAN, your taxes will be deducted at a higher rate. More importantly, if you provide wrong PAN details, then the TDS deducted from your salary will not be reflected in your Form 26AS which is linked to your PAN.

How can H&R Block help you?

If you are facing any tax litigation, the income tax experts at H&R Block India can help you resolve the issue. Also, if you need help in filing taxes, you can avail our online tax filing by experts service and get your taxes filed accurately and hassle-free.

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CA Shreya Oturkar
CA Shreya Oturkar
Shreya is a tax advisor at H&R Block (India) with intensive experience in SME taxation and audit. She holds an advanced post graduate qualification in accounting and is highly skilled in financial analysis and reporting. Apart from her professional achievements, Shreya is a talented artist with a flair for free-hand sketching!