PAN card mistakes to avoid while filing your income tax returns - You may face problem with Form 26AS

The Permanent Account Number (PAN) card is required for every form of income tax returns related services. However, while every salaried individual is liable to pay taxes, the Income Tax Department also provides relief in form of refunds. This can be referred to as tax credit. To view tax credit, you will need to file Form 26As. Notably, this form is an important document needed for Income Tax Returns (ITR) filing. However, there can be occasions where you cannot view your tax credit statement due to few mistakes that were made during filing. One of the major errors would be in your PAN card. Hence, you must ensure to avoid below mentioned errors in PAN card dealing with Form 26AS.

What is tax credit?

This is an amount which can offset a taxpayer’s overall tax liability. Generally, it is a sum that is deducted from a total payable tax by an individual. Take note, tax credit is different from deduction as in the latter, refunds are applicable indirectly. In simple words, tax deduction helps in reducing base taxable amount of a taxpayer, on other hand, tax credit helps in minimising the liability irrespective of the base tax liability. 

For example, if an individual is charged more tax than s/he is actually liable to pay due to various reasons, then the excess amount is offered as tax credit to that individual by I-T department. Also, this tax credit can be adjusted during future tax liabilities. 

What is Form 26AS?

There are five section in Form 26AS, each depending upon the category of deductions and taxes paid. The first one would be part A and A1 of Form 26AS which have details of tax deducted on behalf of the taxpayer by deductors. The part B of the form contains information of tax collected by deductors. Then, there is part C of the document, intimating details of advance tax, self-assessment tax, regular assessment tax, etc. which are deposited by the taxpayers. Meanwhile, part D of the form gives details of paid refund received during a financial year, whereas the part E section provides data of high value transactions carried in shares, mutual funds, etc.

According to Income Tax Act, every taxpayer who has a PAN card can view its tax credit statement aka Form 26AS. 

Hence, the situation where your credit statement does not displays in Form 26AS is due to error made while furnishing PAN card details. 

Possible reasons for the error! 

Firstly, an individual must have not provided PAN details to the deductor or collector. 

Secondly, one must have furnished incorrect PAN number.

Thirdly, the deductor or collector has made an error in quoting your PAN in the TDS/TCS return.

Also, error can come if your deductor or collector has not quoted your PAN card. 

Other reasons for error would be - deductor or collector not filing TDS/TCS statement. Additionally, details of challan against which your TDS/TCS was deposited was wrongly quoted in the statement by the deductor or wrongly quoted in the challan details uploaded by the bank.

How to rectify these errors, as per IT department. 

An individual can request the deductor for the following:

1. To file a TDS/TCS statement if it has not been filed.

2. To rectify the PAN using a PAN correction statement in the TDS/TCS statement that has been already uploaded if it has made an error in the PAN quoted.

3. Furnish a correction statement if the deductor had filed a TDS/TCS statement and had inadvertently missed providing your details or you had not given your PAN to him before he filed the TDS/TCS return.

4. Furnish a correction statement if the deductor had filed a TDS/TCS statement which had mistake in the challan details.

5. Take up with the bank to rectify any mistake in the amount in the challan details uploaded by the bank.