Simple Steps to Check TDS Statement Status Using Your PAN Card

Introduction

TDS (Tax Deducted at Source) ensures that tax is collected at the right time. The Government of India mandates that a certain percentage of income be deducted at the source by the employer or payer, which is deposited with the Income Tax Department. As a taxpayer, keeping track of the TDS deductions against your PAN is essential to avoid discrepancies during income tax filing.

This guide will walk you through the simple steps for tds check by PAN card and other methods available for verification.

What is TDS (Tax Deducted at Source)?

TDS is a tax collection mechanism where the payer (such as an employer, bank, etc.) deducts tax directly from an individual’s income at the time of payment. The deducted amount is then remitted to the government. It serves two key purposes:

1. Ensures timely tax collection: The government collects taxes before the income reaches the individual.
2. Reduces the possibility of tax evasion: It is challenging to avoid TDS because the deductions are made at the source.

Example: If an individual earns a salary of ₹1,00,000 a month, the employer may deduct 10% (₹10,000) as TDS, which will be directly paid to the government on behalf of the employee.

Importance of TDS Statement Status

Checking your TDS status is crucial to ensure that the deductions made by your employer or other payers are appropriately credited to your account. If there are discrepancies, it can result in tax-related issues, including paying extra tax during filing or facing penalties.

Example: If your employer has deducted ₹10,000 in TDS but has not deposited it with the government, you could end up paying tax on income you already paid tax on.

Prerequisites for TDS Statement Status

Before checking your TDS statement status, ensure the following prerequisites:

1. PAN Card: Your Permanent Account Number (PAN) is required to identify your TDS records.
2. Active Internet Connection: You need an active internet connection to access the Income Tax Department’s website.
3. Access to your TDS Details: Your employer, bank, or other deductors should have provided the TDS details to you in Form 26AS or through a TDS certificate.

Step-by-Step Guide to Check TDS Statement Status by PAN

Checking your TDS statement status online through your PAN card is straightforward. Follow these steps to verify your TDS:

1. Visit the Income Tax Portal: The Income Tax Department’s official website.
2. Login with Your PAN: Enter your PAN as the user ID, and use your password for the tds statement status log in. If you don’t have an account, you can create one by providing the necessary details.
3. Navigate to Form 26AS: Under the “View” tab, click on “Form 26AS” (Tax Credit Statement).
4. Select the Assessment Year: Choose the appropriate assessment year for which you want to check your TDS statement status.
5. View Tax Credit Summary: Your TDS entries, including the tax deducted by your employer and other entities, will be visible in Form 26AS. You can check the status of the TDS deducted from your income.
6. Cross-verify the TDS Entries: Compare the TDS details with your payslips or other documents to ensure that all deductions are accurately reflected.

Example: If you notice that ₹20,000 is shown as TDS deducted, but you only paid ₹18,000 in TDS, it indicates an error that needs correction.

Alternative Methods to Check TDS Statement Status

Besides the Income Tax portal, you can also check your TDS statement status via:

1. TRACES (TDS Reconciliation Analysis and Correction Enabling System):
   • Visit the TRACES website and log in using your PAN.
2. TDS Certificates:
   • Employers or deductors provide TDS certificates (Form 16 or Form 16A) that contain details of the TDS deducted and deposited.

How do you resolve login issues on the income tax portal?

If you face issues while logging into the Income Tax portal, here are some standard solutions:

1. Forgotten Password: Use the “Forgot Password” option to reset it.
2. Incorrect PAN: Double-check your PAN details and ensure no typos.
3. Server Downtime: Sometimes, the portal may experience downtime for maintenance; try again after some time.

Steps to Rectify Incorrect TDS Entries

If there are discrepancies in the TDS entries, take the following steps:

1. Contact Your Deductor: Inform your employer or payer about the incorrect TDS entry.
2. Rectify TDS Return: The deductor must file a correction in the TDS return with the correct information.
3. Follow-up: Check Form 26AS after the correction to confirm the changes.

Example: If your employer has reported a higher amount of TDS deducted than what you paid, ask them to correct the entry on the portal.

Why Regularly Checking Your TDS Statement Status is Important

Regularly checking your TDS statement status can prevent complications while filing your income tax returns. You’ll be able to:

1. Detect Errors Early: Avoid paying extra tax or facing penalties.
2. Ensure Accurate Refunds: You can claim a refund if the TDS is over-deducted.

Example: If you realize your TDS details are inaccurate, you can quickly act before filing your tax return.

Conclusion

Checking your TDS statement status is an essential part of tax compliance. With the right tools and knowledge, you can ensure that your TDS records are accurate and avoid unnecessary tax-related issues.

Following the steps outlined in this guide, you can easily verify your TDS deductions using your PAN card and promptly rectify any errors.

At RegisterKaro, we help individuals and businesses manage tax compliance efficiently. Our experts assist with TDS verification, tax filing, and rectifying TDS errors. Contact us today for hassle-free tax solutions.

Frequently Asked Questions (FAQs)

1. How do I know if my TDS has been deducted correctly?
A: You can check your Form 26AS on the Income Tax portal to verify the deductions.

2. What is the difference between Form 16 and Form 26AS?
A: Your employer issues Form 16, while Form 26AS shows the total TDS deducted from all sources of income.

3. Can I check my TDS status without logging into the Income Tax portal?
A: Yes, you can check it via the TRACES portal or by asking your employer for a TDS certificate.

4. What should I do if I find an error in my TDS status?
A: Contact the person who deducted the tax and ask them to file a correction.

5. Can TDS status be checked for multiple years at once?
A: Yes, Form 26AS allows you to TDS check online for multiple assessment years.

6. How can I download my Form 26AS?
A: You can download it directly from the Income Tax portal under the “View Form 26AS” option.

7. Is there a limit on the amount of TDS deducted?
A: TDS rates are predefined based on the type of income. You can refer to the Income Tax Act for specific limits.

8. What happens if my TDS is not updated in Form 26AS?
A: If TDS is not updated, your tax credit might not be reflected in your final tax calculation, leading to an incorrect tax liability.

9. Can TDS be refunded if more is deducted than necessary?
A: Yes, you can claim a refund for excess TDS by filing your income tax return.

10. What is TRACES, and how is it related to TDS?

A: TRACES is an online portal by the Income Tax Department that allows taxpayers to view, download, and correct their TDS records.