Every person deducting tax at source has to furnish the details of tax deducted by him to the Income-tax Department. The details will cover the name of the deductee, Permanent Account Number of the deductee, amount of tax deducted, amount paid to the deductee, date of payment of TDS to the credit of Government, etc. On the basis of the details of TDS provided by the deductor, the Income-tax Department will update Form 26AS of the deductee.

Many times the actual amount of TDS and TDS credit as appearing in Form 26AS may differ and it may happen that the TDS credit appearing in Form 26AS may be less as compared to actual TDS, this may happen due to reasons like non-furnishing of TDS details to the Income-tax Department by the deductor, deducting the tax in incorrect Permanent Account Number, etc. In such a case the deductee should approach the deductor and request him to take the necessary steps to rectify the discrepancy due to above reasons.

The Income-tax Department updates the TDS details in Form 26AS on basis of details provided by the person deducting the tax (i.e., the deductor), hence, if there is any default on the part of deductor like non -furnishing of TDS details (i.e., TDS return) to the Income-tax Department, deducting the tax in incorrect Permanents Account Number, etc. then Form 26AS will not reflect the actual TDS. In such a case, the taxpayer may not be able to claim the credit of correct TDS. Hence, the taxpayers are advised to confirm the tax credit appearing in Form 26AS and should reconcile the difference, if any.

​If discrepancy is due to deductor , then he may file TDS/TCS correction statement and correct the same.

The followings are the important steps/points/precautions to be kept in mind while filing the Income Tax Return:
1) The first and foremost precaution is to file the Income Tax Return on or before the due date. Taxpayers should avoid the practice of filing belated return. Following are the consequences of delay in filing the Income Tax Return/ Loss (other than house property loss):

a. Losses cannot be carried forward.

b. Levy of interest under section 234A.

c. Late filing fees under section 234F is levied for return filed from A.Y 2018-19 onwards. Late filing fee of Rs. 5,000 shall be payable if return furnished after due date but before 31st December of the assessment year. In other cases, late filing fees of Rs. 10,000 is payable. However amount of late filing fees to be paid cannot exceed Rs. 1,000, if total income does not exceed Rs. 5 Lakh.

d. Exemptions under section 10A​, section 10B, are not available.

e. Deduction under 80-IA, 80-IAB, 80-IB, 80-IC , 80-ID and 80-IE, are not available.

f. Deduction under 80IAC, 80IBA, 80JJA, 80JJAA, 80LA, 80P, 80PA, 80QQB and 80RRB are not available. (From A.Y 2018-19)

g. Belated return cannot be revised under section 139(5) till A.Y 2016-17. However, from A.Y 2017-18, even a belated can be revised by the taxpayer.

2) Taxpayer should download Form 26AS and should confirm actual TDS/TCS/Tax paid. If any discrepancy is observed then suitable action should be taken to reconcile it.

3) Compile and carefully study the documents to be used while filing the Income Tax Return like bank statement/passbook, interest certificate, investment proofs for which deductions is to be claimed, books of account and balance sheet and P&L A/c (if applicable), etc.

4) No documents are to be attached along with the Income Tax Return. The taxpayer should identify the correct return form applicable in his case. Carefully provide all the information in the return form. Confirm the calculation of total income, deductions (if any), interest (if any), tax liability/refund, etc.

5) Ensure that other details like PAN, address, e-mail address, bank account details, etc., are correct.

6) After filling all the details in the Income Tax Return and after confirmation of all the details, one can proceed with filing the Income Tax Return. In case return is filed electronically without digital signature and without electronic verification code do not forget to post the acknowledgement of filing the Income Tax Return at CPC Bangalore within 120 days of filing Income Tax Return.

• Long term Capital Gain (LTCG) under section 112 of the Act
• Long Term Capital Gain (LTCG) under section 112A of the Act (Applicable from A.Y 2018-19)
• Short Term Capital Gains (STCG) under section 111A of the Act
• Incomes referred to in sections 115A, 115AB, 115AC, 115AD, 115BBA and 115D
• Casual incomes like winnings from lotteries, horse races, etc., under section 58(4) of the Act.

• TDS is not deposited by deductor
• TDS is deposited but return is not filed by deductor
• TDS is wrongly deposited under some other PAN
• TDS credit is not updated in Form 26AS
• Any other reason

When deductor deposits TDS under some wrong PAN, he has to make correction in the statement for PAN. In some cases, online PAN correction can also be made.

Assessee can claim TDS in Income-tax return after that PAN correction

• An assessee is a resident Individual
• Total Income does not exceed Rs. 3,50,000 in the A.Y 2018-19 (Rs. 5,00,000 till A.Y 2017-18)
• Rebate is 100% of Income tax or Rs. 2,500, whichever is less in the A.Y 2018-19 (Rs. 5,000 till A.Y 2017-18)

Rebate under section 87A is not available to a non-resident individual, resident or non-resident HUF/AOP/BOI and company.