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Misreporting TDS credits often results in income tax notices under Section 143(1) when the details claimed in an ITR do not match Form 26AS, AIS, or the deductor’s filings. These discrepancies arise from incorrect entries, delays in TRACES updates, or deductor errors, and taxpayers must respond quickly to avoid penalties or refund delays. Understanding why the mismatch occurred, verifying information online, and submitting either a revised return or rectification request help

Missed TDS entries can cause serious discrepancies in your income tax records, often leading to refund delays, penalty notices, or incorrect tax assessments. Under the Income Tax Act, 1961, every TDS deduction must be accurately reported and matched with Form 26AS. A mismatch or omission can attract penalties or even block refunds. Ensuring all TDS credits are correctly reflected is essential to maintain compliance and prevent financial losses. To report missed TDS entries a

Form 26AS is the central record of all taxes deducted or collected under a PAN, and verifying these details is essential before filing an income tax return. Every TDS entry—whether from salary, bank interest, property transactions, or professional payments—must appear correctly in Form 26AS for the refund or tax credit to be approved. Mismatches, missing entries, or incorrect deductor information often lead to delayed refunds, demand notices, or defective return classificati

Choosing the right TDS form is essential for accurate tax compliance under the Indian Income Tax Act. Both Form 24Q and Form 26Q serve as quarterly TDS return statements but apply to entirely different types of payments. Form 24Q is used for salary-based deductions under Section 192 , while Form 26Q applies to payments like rent, commission, and professional fees under Section 200(3). The right form ensures proper tax reporting and helps avoid penalties for incorrect filing

Section 194A of the Income Tax Act, 1961 governs the deduction of Tax Deducted at Source (TDS) on interest income other than interest on securities. It primarily applies to interest earned from fixed deposits, recurring deposits, loans, and advances by Indian residents. The provision ensures that tax is deducted at the source before payment, promoting timely compliance and minimizing evasion. Tax on interest income is deducted when the amount exceeds specified limits, and the

When the tax deducted at source (TDS) exceeds your actual income tax liability, the excess amount becomes refundable under the Income Tax Act, 1961. To receive this refund, a taxpayer must file an Income Tax Return (ITR) for the respective financial year, ensuring all income, deductions, and exemptions are correctly reported. The process involves filing, verification, and refund credit to the taxpayer’s registered bank account. Understanding the steps and timelines helps avo

Section 194J of the Income Tax Act, 1961 deals with Tax Deducted at Source (TDS) on payments made to professionals and technical service providers. It ensures that tax is collected at the time of payment itself, helping maintain compliance and reducing evasion. This section applies to services rendered by professionals such as doctors, engineers, consultants, and IT experts. With the recent updates from Budget 2025, the threshold limit has increased to ₹50,000, and TDS rates

Section 195 of the Income Tax Act, 1961 mandates deduction of Tax Deducted at Source (TDS) on payments made to non-residents such as NRIs and foreign companies. It ensures that tax is collected at the source when income arises from India, covering payments like interest, royalty, professional fees, rent, and capital gains. This mechanism prevents tax evasion and secures government revenue by holding the payer accountable for deduction and remittance of tax to the government

Filing TDS returns online ensures transparency, compliance, and timely credit of taxes deducted at source. Every deductor, whether an employer, business, or individual, must report tax deductions accurately using the Income Tax Department’s e-filing portal. The process involves registration, preparation, validation, and electronic submission of quarterly statements. The Income Tax Department has refined its e-filing system for FY 2025-26, making it easier for deductors to com

Form 16A and Form 16B are both TDS certificates under Indian tax laws, but they serve entirely different purposes. Form 16A applies to non-salary income such as interest, rent, or professional fees, while Form 16B is specific to TDS deducted on property transactions above ₹50 lakh. Knowing how these forms differ ensures accurate filing, proper TDS credit claims, and smooth tax compliance. With digital platforms like TaxBuddy simplifying TDS tracking and filing, taxpayers c