Employer deducts TDS from the taxable salary of the employee i.e. if an employee makes certain investments which qualify for deduction from income that an employee can declare in new form introduced by income tax department- Form 12BB.
Arun Jaitley, our Finance minister announces to launch Quarterly SMS service for salaried persons about TDS deductions.
Near about 2.5 crore salaried taxpayers will receive SMS alerts. The SMS tells you the TDS deducted from your salary every quarter. This is an initiative by Finance Minister to increase the TDS transparency so that at the time of filing TDS returns there should be less discrepancy. CBDT also says that out of 12.5 lakh TDS mismatches, 9.73 lakh mismatches belong to salaried class people.
Jaitley also said that salaried class cannot afford to pay tax twice or indulge in litigations. Sometimes, TDS deducted from the person’s salary is deposited with wrong PAN or in case the employee shifts the TDS deducted by both employers is more than the actual liability of the employee. In last the employee pays excess tax and cannot take tax credit of TDS. To end up this error, the salaried person can compare the SMS alerts with your pay slips to find out any discrepancy.
This will be very useful for the salaried class people as TDS mismatch is the most common error in while filing income tax return. A person needs to get registered his/her mobile number with the department’s website. When your number gets registered, you will get a welcome message which will inform you about the facility and after every TDS deduction you will get a SMS for the same. The SMS alert will contain a summary of TDS deducted till the time when the SMS is received. In a case of any mismatch, employee can contact their deductor for appropriate correction. Earlier the employee had to wait for the year end to get a Form 16 to check all the TDS credits are duly recorded (in case the employee is not aware of Form 26AS). SMS alerts will also be sent to deductors who have not deposited the tax deducted or failed to file TDS return by the due date as may be prescribed.
Jaitley asked the CBDT for making the grievances Redressal system for TDS mismatch online so to remove interface between the taxpayer and the tax department.
Jaitley said that e-Nivaran is working well for taxpayers and CBDT is taking several initiatives which are taxpayer friendly.
This SMS alert service is currently being provided on a quarterly basis, but soon it will be provided on a monthly basis. The frequency will be further increased when the process of filing TDS returns is up to date to real time basis. The complete details of TDS deducted on your salary as well as other payments made to you can also be seen in your Form 26AS. Form 26AS is a tax credit statement which can be viewed from the Income Tax Department’s website.
This SMS alert will also be provided to 4.4 crore non-salaried people soon.
About the Author
Arpit Goyal is pursuing CA and B.com & also working as an article assistant in Gurgaon. He has an immense interest in Taxation. He loves to use technology to spread knowledge about taxation & accounts.