If you are salaried, you would definitely have come across the term TDS or Tax Deducted at Source. Your employer deducts tax from your salary and pays it to the Government, on your behalf. Your employer then issues the Form 16, which is your income certificate. It contains details of your income and taxes paid on this income. Your employer would deduct TDS on a quarterly basis, and Form 16 is issued after the end of the Financial Year.
Now, TDS is all over the news. The Income Tax Department has unearthed a scam where 447 Companies had deducted TDS from employees, but had not deposited the money with the Government. These greedy Companies had diverted the money to further their own business interests. This scam was a whopping Rs 3,200 Crores and after the PNB scam and other scams, it's a real shocker.
So what's the TDS scam? Let's find out. Want to know more on tax planning? We at IndianMoney.com will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. IndianMoney.com is not a seller of any financial products. We only provide FREE financial advice / education to ensure that you are not mis-guided while buying any kind of financial products.
Your employer has deducted TDS from your salary. That's That. It is the end of your worries or is it? If your employer does not deposit the TDS deducted from your salary with the Government, you will get a notice from the IT Department.
This is because there would be a discrepancy between Form 16 and Form 26AS. So, how can you check if the employer has deposited TDS with the Government?
SEE ALSO: Tax Deductions For Freelancers
1. Understand Form 26AS
The Form 26AS contains details on the various taxes deducted from your income by deductors, who may be banks or your employer.
In the Form 26AS, you will find details on any advance tax, self-assessment tax, details of tax collected at source and any income tax refunds got from the tax department during the relevant financial year, and high-value transactions deducted on your behalf.
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