Day by day new scams are coming to light. after the Punjab National Bank and Rotomac scams, now the income tax department has identified a TDS scam worth Rs 3,200 crores. Under this scam, 447 companies deducted TDS from their employee's, but instead of depositing with the Income Tax Department, they diverted it to further their own business interests.
Now, many salaried employees feel that TDS has anyways been deducted from my salary, and I don't have to worry about what happens after that. But, if the company does not deposit the TDS deducted from your salary with the government, you might land in a legal tangle.
This is because there will be a discrepancy in your Form 16 and Form 26AS, if TDS is deducted but not deposited with the Government. In such a case, you will be sent a notice by the income tax department, as TDS deducted from your salary (as shown in Form 16) will not match with the tax deposited against your PAN (as shown in Form 26AS), in the department records.
How to check if there are any mismatches?
To check if there are any mismatches with the TDS deducted and deposited with the Income Tax department, employees should keep checking the Form 26AS.
Form 26AS contains the annual tax credit statement subjected to TDS, and it is generated by the income tax department. You can download Form 26AS from the TRACES website after logging into their e-filing account on the income tax website.
Form 26AS contains details like your name, PAN, details of the deductor (bank/employer), amount of TDS, the amount of TDS deposited and so on.
The Government had started the SMS service in the year 2016, to provide information to the taxpayer, on the total TDS deposited against their PAN. The SMS will be sent once in 3 months. So, you should provide the proper mobile number to the income tax department.
You can also download the Form 26AS using the Net banking facility of authorized banks. After checking the Form 26AS with the Form 16, if you find any mismatch, you must report it to the tax deductor immediately and ask them to take necessary steps to rectify the error.