What problems do taxpayers face in getting credit for tax deducted at source?

  1. Issue of mismatch in 26AS credit versus the actual TDS deducted.

    For example in case a customer’s TDS is deducted but not deposited with the authorities before the income tax return is filed.

  2. Issue when the transaction value (sales reported) in the profit and loss statement is less than the transaction value reported in the 26AS statement.

    This makes a direct possibility of notice or query from the tax department.

  3. Incomes that are unaccounted in the profit and loss statements such as TDS on advances should be duly carried forward to the next period. In the absence of such carry forward and as already discussed above in point number 2 above there are chances of the notice / query from department.
  4. Incomes of other heads reported in the 26AS such as interest not accounted in the P&L and return in due heads causing a challenge in claiming the TDS credit.
  5. Brought forward credits of the TDS from earlier years which need to be accounted in the current period and is to claimed as TDS credit.