13 ERRORS YOU SHOULD AVOID TO GET CORRECT TDS-TAX CREDIT IN INCOME TAX RETURN

Reasons for mistakes in Credit for tax payments or TDS 

A major reason for difference in refund amount during processing is that the details of tax payment or TDS do not match with the data available with the Department. The critical checkpoints are as under:

1. Tax deduction details from All employers/TAN holder shall be shown separately  :Corresponding deduction of tax (TDS) on salary by all Employers should be correctly entered in Schedule TDS1 in ITR1 or Schedule TDS 1 for ITR 2.Please note that details of all Employer /deductor should be shown separately .In some organisation location wise/branch wise /station wise /DDO wise TAN is taken ,in such case if you have received salary from two TAN holder then you should enter TAN wise tax deduction.
2. Salary TDS and Interest etc TDS should be entered in Sch TDS-1 and TDS-2 Separately :TDS on salary should be entered in Schedule TDS1 ONLY and TDS on other Income should be entered in Schedule TDS 2 ONLY. 
3. Enter Correct TAN of the Deductor :Tax deduction Account Number (TAN) of the Employer/Deductor is the unique identifier for matching TDS claims made against TDS reported by Employer/Deductor. The TAN number is mentioned on the Form 16 given by the Employer or on the Form 16A given by the Deductor. In case the TAN of the Employer/Deductor is not correctly mentioned, no matching is possible and TDS credit will not be given. 
4. Check and Match your Form 16/16A details with Form 26AS :If the TAN has been correctly entered but the Employer/Deductor does not report the same TDS details to the Department, especially the taxpayer Permanent Account Number (PAN), then also the TDS cannot be matched. Therefore it is advised to check Form 26AS for the amount which has already been deposited by persons deducting tax on behalf of the taxpayer. Thereafter, the taxpayer should bring this fact in the notice of persons deducting tax so that they can act accordingly. 
5. Deposit Self assessment Tax at correct PAN:In case of Tax payments of Advance tax or Self-Assessment tax, the PAN used to submit the tax challan to the bank should be the same as the PAN used to submit the return. Without a valid PAN the tax payment received from the bank would be in suspense and cannot be matched with tax payment claim as entered in the return. 
6. Deposit Tax for correct assessment year :While making the tax payment at the Bank, NO MISTAKE should be made in the challan while entering the PAN, Name, Major head (20 or 21), Assessment Year, Type of tax payment {advance tax (code 100), Self-Assessment tax (code 300)}, tax applicable (Income tax other than companies). 
7. Do not select code 400:Any tax payment made under code 400 corresponding to 'Tax on regular Assessment' cannot be used for matching and accordingly credit cannot be given against advance tax or self-assessment tax claims. 
8. File correct Challan Identification Number (CIN) :The Challan Identification Number (CIN) is the combination of BSR code (any bank branch's unique 7 digit identification number issued by RBI), date of deposit of challan (DD-MM-YY), and the running serial number of the challan, asis mentioned by the Bank while accepting tax payment on its seal. In case this is not clearly legible, the Bank can be requested to provide correct details. This must be entered correctly in the return while claiming credit.

Schedule TDS and TCS 

A major reason for difference in refund amount during processing is that the details of tax payment or TDS do not match with the data available with the Department. The critical check points are as under: 

1. Tax deduction Account Number (TAN) of the Employer/Deductor is the unique number for matching TDS claims as reported by the Employer/Deductor. The TAN is mentioned on the Form 16 given by the Employer or on the Form 16A given by the Deductor. In case the TAN details do not match TDS credit will not be allowed. 
2. Where the TAN entered is valid but the Employer/Deductor does not report the exact TDS details to the Department, especially the taxpayer Permanent Account Number (PAN), and then TDS cannot be matched. Therefore it is advised to check Form 26AS for the amount which has been deposited by persons deducting tax on behalf of the taxpayer. If any mismatch exists, the taxpayer should bring it to the notice of persons deducting tax so that they can act accordingly. 
3. TDS on salary should be claimed ONLY in schedule TDS Salary (ITR 1) or TDS1 (ITR 2-4). 
4. TDS on income other than salary should be claimed ONLY in TDS on income other than salary (ITR 1) or TDS 2(ITR 2-4). 
5. Claiming of TCS claims in TDS schedules and vice versa will lead to mismatching, which results in excess demand or lower refund. The claim of TDS amount should be made in “TDS deducted” as well as “TDS Claimed for the year” columns in schedules TDS2 and TCS. 
6. TDS claims should match with Form 26AS.