FORM OF INCOME TAX RETURNS - SIMPLIFICATION ABOUT DETAILS OF TDS. - Suggestions for ITR for Assessment year 2011-12

[C.A. DEV KUMAR KOTHARI]

Details of TDS in form of Income tax returns:

In Income tax return details of tax deducted at source from income received or accrued is required to be given. For each deduction of tax at source, details are required to be given. This makes filling of details very time consuming and complex. Furthermore, there are also chances of mistakes in data entry.

Credit found in OLTAS/NSDL report in form 26AS:

The work can be made easy by dividing details in two parts.

Part I- details confirmed in Form 26AS:

In part I details of TDS as found reported in Form 26AS on the website of income tax department/ NSDL can be given. This amount and related details are available and are duly verified by the department’s software under its system of data receiving and processing. Therefore, there is no purpose for filling details of the relevant TDS covered by Form 26AS.

In many cases there are large number of tax deductions. For example in case of large transport company, there can be thousands of tax deductions.

The assessee can obtain by way of downloading the copy of Form 26AS and give details of TDS in part I as TDS found credited in Form 26AS. This will obviate need to fill in large number of entries.

Part II- details of TDS not reflected in Form 26AS for which assessee has complete details:

Due to mistakes in data entry, non filing of TDS returns, non deposit of TDS etc. some TDS may not be reflected in report in Form 26AS. The assessee can provide details of such TDS in part II. The assessee can gather details from TDS certificate or other documents provided by the tax deductor. These TDS may be verified and reflected in Form 26AS subsequently when the tax deductor files returns of TDS, or rectify such returns. Thu by the time return is processed, the department might have details of such TDS in its system.

Part III of TDS – details of TDS for which assessee has no complete information:

There can be circumstances when the assessee only knows that certain amount of tax has been deducted or was deductible by the payer of income. He may not have details of deposit of tax deducted or deductible. For preferring claim for such TDS a third part of details of TDS can be provided. In this assessee can mention the details of payment / credit received like person paying the sum as income, amount of income, amount of tax deducted or deductible. In this part assessee would thus claim for credit of tax deducted / deductible from his income for which he has no access to complete information.