What is the annual tax statement?
Do you have to register to get your annual tax statement?
How to read the annual tax statement?
Why must you check the annual tax statement?
When and why was this exercise started?
these are the questions which arises in your mind about "annual tax statement" so read the following to get the answers. The income-tax department, through the National Securities Depository Ltd (NSDL), has been sending income-tax payers a document called the 'annual tax statement' for the past two years. If you have ignored these emails or letters from NSDL's Tax Information Network (TIN), it's high time you referred back to them. For, under the new rules, these are central to the tax filing process.
Do you have to register to get your annual tax statement?
How to read the annual tax statement?
Why must you check the annual tax statement?
When and why was this exercise started?
these are the questions which arises in your mind about "annual tax statement" so read the following to get the answers. The income-tax department, through the National Securities Depository Ltd (NSDL), has been sending income-tax payers a document called the 'annual tax statement' for the past two years. If you have ignored these emails or letters from NSDL's Tax Information Network (TIN), it's high time you referred back to them. For, under the new rules, these are central to the tax filing process.
What is the annual tax statement?
The annual tax statement lists all the tax deducted at source (TDS) or tax collected at source (TCS) by the employer in case of salaried individuals or banks for fixed deposits, etc. This statement will tell you what is the tax deducted by anybody for your permanent account number (PAN) in a particular year. So, if tax has been deducted by someone in 2008-09, the letter from TIN will read Annual Tax Statement for Assessment Year 2009-10 (when you pay taxes for income earned between April 1, 2008 and March 31, 2009).
TIN creates the statement based on the information submitted by the person who has deducted or collected your tax, before handing over your rightful money to you. Companies, banks, etc file income-tax returns before individuals do and so the information submitted by them for your PAN has to be verified by you before filing your return.
Do you have to register to get your annual tax statement?
If you want to get the annual tax statement from the current financial year, you can register and also view your tax credits through a one-time registration. Registration details are available at www.incometaxindia.gov.in and www.tin-nsdl.com.
How to read the annual tax statement?
Also called your Form 26AS, the annual tax statement contains, all the TDS in Part A, while the tax collected at source TCS is covered in Part B. When you deposit tax in a bank as self-assessment or advance tax via a challan, the same would be reflected in Part C.
The status of the tax credit too would be mentioned, besides the tax entry, using three letters --- P for provisional, U for unmatched and F for final. Provisional would mean tax where the credit is effected on the basis of TDS/ TCS returns filed only. This would turn to final on verification.
Unmatched would mean that the deductor has not yet deposited the taxes or has provided incorrect details of tax payment. Sometimes final status would not appear if the payment details in the bank match don't match with the details of deposit in the TDS or TCS return.
When and why was this exercise started?
This mailer is being sent to most tax payers for the past two years, when the income-tax department moved to a separate system of filing and submitting returns without any attachments such as Form 16, TDS Certificates etc.
As there was no proof of tax deducted or collected without the attachments, the income-tax department was finding it difficult to process the returns. Hence, the annual tax statement was initiated to tell individuals about the tax credits reported by their tax deductors or collectors and the tax deposited as self assessment tax, advance tax, etc. It is claimed that the process would help the income-tax department process returns faster like in USA, where refunds are given to the individuals within two months time.
Why must you check the annual tax statement?
The statement will be referred by the income-tax department while processing your income-tax return. So, if the data provided by you doesn't match that provided by the tax deductors, then your return won't be accepted until it is corrected.
Only the deductor or the person who has entered the data has the right to correct it and not the individual on whom the data has been entered. The annual tax statement sent for this assessment year notes, "The statement is being sent to enable you to take up the matter pertaining to any deficiencies in your statement with your deductor at the time of taking the TDS certificate(s) at the end of the financial year. This would also ensure that complete and correct tax credit is available to you at the time of filing of the income-tax return for the A.Y. 2009-10."
How can discrepancies creep in?
Your tax credit could be erroneous if the deductor or collector has not filed its quarterly TDS/TCS return; has not quoted or has wrongly quoted your PAN in its return. It may also happen if the deductor has not paid the required TDS to the government account. If you have not provided your PAN details, the employer or bank may not be able to submit your tax details as PAN is mandatory. In case of any such errors, you must persuade the deductor to rectify the mistake.
What if you don't correct them?
The tax credits would be given to you only on the basis of the tax statement. The income-tax department has stated, "The same (tax credit) should be verified before claiming tax credit and only the amount which pertains to you should be claimed."
Will a fresh statement be sent in case the deductor revises his or her returns?
NSDL will provide you a fresh tax statement when the deductor revises his data.
Who to contact in case of queries?
In case you are still have queries on the annual tax statement you can call 020-2721 8080 or contact NSDL via fax at 91-20-2721 8081 or email them at reply@nsdl.co.in or tininfo@nsdl.co.in.
So, before the July 31, 2009 deadline for filing income-tax returns, make sure you ask your deductor to rectify any errors in your annual tax statement.
SourceThe annual tax statement lists all the tax deducted at source (TDS) or tax collected at source (TCS) by the employer in case of salaried individuals or banks for fixed deposits, etc. This statement will tell you what is the tax deducted by anybody for your permanent account number (PAN) in a particular year. So, if tax has been deducted by someone in 2008-09, the letter from TIN will read Annual Tax Statement for Assessment Year 2009-10 (when you pay taxes for income earned between April 1, 2008 and March 31, 2009).
TIN creates the statement based on the information submitted by the person who has deducted or collected your tax, before handing over your rightful money to you. Companies, banks, etc file income-tax returns before individuals do and so the information submitted by them for your PAN has to be verified by you before filing your return.
Do you have to register to get your annual tax statement?
If you want to get the annual tax statement from the current financial year, you can register and also view your tax credits through a one-time registration. Registration details are available at www.incometaxindia.gov.in and www.tin-nsdl.com.
How to read the annual tax statement?
Also called your Form 26AS, the annual tax statement contains, all the TDS in Part A, while the tax collected at source TCS is covered in Part B. When you deposit tax in a bank as self-assessment or advance tax via a challan, the same would be reflected in Part C.
The status of the tax credit too would be mentioned, besides the tax entry, using three letters --- P for provisional, U for unmatched and F for final. Provisional would mean tax where the credit is effected on the basis of TDS/ TCS returns filed only. This would turn to final on verification.
Unmatched would mean that the deductor has not yet deposited the taxes or has provided incorrect details of tax payment. Sometimes final status would not appear if the payment details in the bank match don't match with the details of deposit in the TDS or TCS return.
When and why was this exercise started?
This mailer is being sent to most tax payers for the past two years, when the income-tax department moved to a separate system of filing and submitting returns without any attachments such as Form 16, TDS Certificates etc.
As there was no proof of tax deducted or collected without the attachments, the income-tax department was finding it difficult to process the returns. Hence, the annual tax statement was initiated to tell individuals about the tax credits reported by their tax deductors or collectors and the tax deposited as self assessment tax, advance tax, etc. It is claimed that the process would help the income-tax department process returns faster like in USA, where refunds are given to the individuals within two months time.
Why must you check the annual tax statement?
The statement will be referred by the income-tax department while processing your income-tax return. So, if the data provided by you doesn't match that provided by the tax deductors, then your return won't be accepted until it is corrected.
Only the deductor or the person who has entered the data has the right to correct it and not the individual on whom the data has been entered. The annual tax statement sent for this assessment year notes, "The statement is being sent to enable you to take up the matter pertaining to any deficiencies in your statement with your deductor at the time of taking the TDS certificate(s) at the end of the financial year. This would also ensure that complete and correct tax credit is available to you at the time of filing of the income-tax return for the A.Y. 2009-10."
How can discrepancies creep in?
Your tax credit could be erroneous if the deductor or collector has not filed its quarterly TDS/TCS return; has not quoted or has wrongly quoted your PAN in its return. It may also happen if the deductor has not paid the required TDS to the government account. If you have not provided your PAN details, the employer or bank may not be able to submit your tax details as PAN is mandatory. In case of any such errors, you must persuade the deductor to rectify the mistake.
What if you don't correct them?
The tax credits would be given to you only on the basis of the tax statement. The income-tax department has stated, "The same (tax credit) should be verified before claiming tax credit and only the amount which pertains to you should be claimed."
Will a fresh statement be sent in case the deductor revises his or her returns?
NSDL will provide you a fresh tax statement when the deductor revises his data.
Who to contact in case of queries?
In case you are still have queries on the annual tax statement you can call 020-2721 8080 or contact NSDL via fax at 91-20-2721 8081 or email them at reply@nsdl.co.in or tininfo@nsdl.co.in.
So, before the July 31, 2009 deadline for filing income-tax returns, make sure you ask your deductor to rectify any errors in your annual tax statement.
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