Friday, October 18, 2024

Maximizing Your TDS Credit: A Comprehensive Guide to Claiming TDS in Your Tax Return

Tax Deducted at Source (TDS) is a crucial aspect of the income tax landscape in India, as it allows taxpayers to receive credit for taxes that have already been deducted on their behalf. Understanding how to correctly enter TDS details in your tax return is essential for maximizing these credits and ensuring compliance with tax regulations. In this guide, we will explore four distinct scenarios involving TDS, providing step-by-step instructions for each case, so you can effectively claim your rightful credit.

Understanding the Scenarios

  1. TDS Deducted in the User’s Hands but Claimed by Spouse/Other Person
  2. TDS Deducted in Spouse/Other Person’s Hands but Claimed by the User
  3. TDS Carried Forward: TDS Deducted in the Current Year but Claimed in the Next Year
  4. TDS Brought Forward: TDS Deducted in the Previous Year but Claimed in the Current Year

Case I: TDS Deducted in User’s Hands but Claimed by Spouse/Other Person

  1. Access the TDS Entry Interface:

    • Click on the Prepaid Taxes button on your dashboard.
    • Select Non-Salary (Annexure) to begin entering TDS details.

  2. Enter the Relevant Information:

    • Example: Mr. A has an income from Capital Gain amounting to Rs. 80,00,000 from the sale of an immovable property.

    • TDS of Rs. 80,000 has been deducted by Mr. C (PAN: AXEPC4439Q) on 10.08.2020. This TDS will be claimed by Mrs. B (spouse of Mr. A).

    • Data Entry:

      • Column 1: Select Capital Gain from the dropdown menu.
      • Column 2: Enter Sec 194IA.
      • Column 3: Fill in PAN of Mr. C (AXEPC4439Q).
      • Column 4: Write Mr. C.
      • Column 5: Mention income of Rs. 80,00,000.
      • Column 6: Fill in 10.08.2020.
      • Column 7: Enter Rs. 80,000.
      • Column 11: Mention Rs. 80,00,000 (this income will be claimed by Mrs. B).
      • Column 13: Enter Rs. 80,000 (TDS to be claimed by Mrs. B).
      • Column 14: Enter PAN of Mrs. B (ABNPA1423M).

Case II: TDS Deducted in Spouse/Other Person’s Hands but Claimed by User

  1. Access the TDS Entry Interface:

    • Click on the Prepaid Taxes button on your dashboard.
    • Select Non-Salary (Annexure) for entering TDS details.

  2. Enter the Relevant Information:

    • Example: Mrs. B has an income from Capital Gain of Rs. 80,00,000 from the sale of an immovable property.

    • TDS of Rs. 80,000 has been deducted by Mr. C (PAN: AXEPC4439Q) on 10.08.2020. This TDS will be claimed by Mr. A.

    • Data Entry:

      • Column 1: Select Capital Gain from the dropdown menu.
      • Column 2: Enter Sec 194IA.
      • Column 3: Fill in PAN of Mr. C (AXEPC4439Q).
      • Column 4: Write Mr. C.
      • Column 5: Mention income of Rs. 80,00,000.
      • Column 6: Fill in 10.08.2020.
      • Column 7: Enter Rs. 80,000.
      • Column 8: Enter Rs. 80,000 (TDS credit to be claimed by Mr. A).
      • Column 11: Enter Rs. 80,00,000 (this income relates to Mrs. B).
      • Column 12: Enter Rs. 80,000 (TDS deducted in the hands of Mrs. B).
      • Column 14: Enter PAN of Mrs. B (ABNPA1423M).

Case III: TDS Carried Forward Case

  1. Access the TDS Entry Interface:

    • Click on the Prepaid Taxes button on your dashboard.
    • Select Non-Salary (Annexure) for entering TDS details.

  2. Enter the Relevant Information:

    • Example: Mr. X has an income from Commission of Rs. 1,40,000.

    • TDS of Rs. 7,000 has been deducted by Mr. Y (TAN: MUMY21424E) on 05.03.2020 (for AY 2020-21). Mr. X will claim this TDS in the next assessment year (AY 2021-22).

    • Data Entry:

      • Column 1: Select Other Sources from the dropdown menu.
      • Column 2: Enter Sec 194H.
      • Column 3: Fill in TAN of Mr. Y (MUMY21424E).
      • Column 4: Write Mr. Y.
      • Column 5: Leave blank (as income is not claimed in AY 2020-21).
      • Column 6: Fill in 05.03.2020.
      • Column 7: Enter Rs. 7,000.
      • Column 8: Enter 0 (TDS will be claimed next year).

Case IV: TDS Brought Forward Case

  1. Access the TDS Entry Interface:

    • Click on the Prepaid Taxes button on your dashboard.
    • Select Non-Salary (Annexure) for entering TDS details.

  2. Import Previous Year Data:

    • Click on the Import from Prev. Year button to automatically import unclaimed TDS amounts from the previous year.

  3. Enter the Relevant Information:

    • Example: Mr. X has an income from Commission of Rs. 1,40,000.

    • TDS of Rs. 7,000 has been deducted by Mr. Y (TAN: MUMY21424E) on 05.03.2020 (for AY 2020-21), but Mr. X claims this in AY 2021-22.

    • Data Entry:

      • Column 1: Select Other Sources.
      • Column 2: Enter Sec 194H.
      • Column 3: Fill in TAN of Mr. Y (MUMY21424E).
      • Column 4: Write Mr. Y.
      • Column 5: Mention Rs. 1,40,000 (income related to TDS brought forward).
      • Column 6: Fill in 05.03.2020.
      • Column 7: Enter Rs. 7,000.
      • Column 8: Enter Rs. 7,000 (TDS credit for the current year).
      • Column 10: Mention 2019 (TDS deducted in FY 2019-20).

Conclusion

Receiving credit for TDS is an essential part of the income tax filing process, as it ensures that taxpayers do not pay tax on income that has already been taxed at the source. By accurately entering TDS details according to the scenarios outlined above, you can effectively claim the credit you deserve and avoid any complications during tax assessments.

Posted by at
Labels: , , ,