How to get TDS/TCS Credit ?

Ensuring TDS/TCS Credit

1. Introduction
Tax Information Network (TIN), a repository of
nationwide tax related information, has been established
by National Securities Depository Limited (NSDL) on
behalf of the Income Tax Department (ITD). TIN is an
initiative by ITD for the modernisation of the current
system for collection, processing, monitoring and
accounting of direct taxes using information technology.
All quarterly TDS/TCS returns, giving details of TDS/TCS
submitted by the deductor are uploaded to the central
system hosted by NSDL. The central system also
receives, on a daily basis, details of TDS/TCS deposited
by deductors at the tax collecting banks through the
Online Tax Accounting System (OLTAS). The TIN central
system matches the details of the tax deposited given in
the TDS/TCS statements with the details of the tax
deposits uploaded by the banks and once they are
matched, each of the underlying deductees [whose
details are given in the TDS/TCS statements] are given
tax credit against his Permanent Account Number (PAN).
As per the Finance Act, 2006, credit of TDS/TCS would be
on the basis of the entries in the PAN-wise ledger
described above which is called Form 26AS or Annual Tax
Statement for tax deducted or tax collected on or after
1/4/2008. The PAN ledger will replace Forms 16/16A as
the basis for claiming tax credit in Income Tax Returns
from Assessment Year 2009-2010 onwards.
As can be seen from above, the authentication of tax
deposits claimed by deductors in their TDS/TCS returns
with the data of tax deposits from banks ensures that tax
credit is given only against funds that are actually
received in government account.
2. Ensure Tax Credit
1. The deductor should use the same TAN to deposit
tax in the bank and to prepare the TDS/TCS
statement.
2. In case the deductor has multiple TANs, only one
TAN should be used consistently, the other TANs
should be surrendered to ITD.
3. The deductor details, i.e. TAN, name, address of
deductor should be correctly stated in the
statement filed.
4. Challan details (BSR code- seven digits, challan
serial number upto five digits, date of tender)
mentioned in the statement should be same as
those stamped by the bank on the challan
counterfoil. (Verify the challan details from TIN
website (www.tin-nsdl.com) before filing the
statement to prevent errors)
5. The challan amount mentioned in the statement
should be same as the total amount deposited in
the bank.
6. Valid 10-digit PAN of deductee should be
provided.
3. Views for deductor on the NSDL TIN website
1. 'Challan Status Enquiry' displays the details of
challan deposited in the bank. There are two types
of views; CIN based view and TAN based view.
CIN based view: details of any particular challan can
be viewed.
TAN based view: details of all challans deposited in
the banks for a given TAN during a specified period
can be viewed.
2. 'Quarterly Statement Status' displays status of
the quarterly statement submitted by the deductor.
The deductor can also check the status of the
challans as well as the count of valid PANs in the
statement.
4.Inconsistency in the TDS/TCS statement
submitted by the deductor
TIN matches the challan details (BSR code, Cheque
Tender Date, Challan Serial No., TAN and Amount) in
the TDS statement with challan details uploaded by
the bank. Feedback is given to the deductor where
challans in the statement are not matched.
The status provided in the inconsistency letter is as
follows.:
Matched: Challan details, match with details
provided by bank.
Match failed (Amount does not match,
different TAN in challan and statement,
amount and TAN mismatch): indicates CIN in the
statement matches with CIN in details provided by
banks but TAN and/or amount do not match.
Match pending (CIN in statement not found in
bank data): indicates that CIN mentioned in
statement not received from the bank or the CIN
uploaded by the bank is different than the CIN issued
to the deductor.
In addition to the above the deductor is advised to submit
a correction statement providing valid PAN of all
deductees mentioned in the statement.
For detail guidelines on preparation of correction
statements please refer the Deductors' Manual and also
refer the Do's and Don'ts. These are available on the
NSDL-TIN website (www.tin-nsdl.com).
Action to be taken by the deductor ( Please refer to
the table on page No 3)
TAX INFORMATION NETWORK (TIN)
of Income Tax Department
Ensuring TDS/TCS Credit
For any clarification related to inconsistency, send
email at tin_returns@nsdl.co.in