How to Check Your TDS Status by Using Your PAN Card?

In the Indian taxation system, Tax Deduction at Source (TDS) is a key concept, as it ensures tax collection directly from the income source. It also helps to maintain the consistency of the government’s revenue base and aids in promptly collecting taxes. One of the most efficient ways to know the status is to do a TDS check by PAN card.

Understanding TDS and PAN

TDS (Tax Deducted at Source): TDS is a mechanism where the payer (an employer, a bank, or any other entity) deducts tax at the source before paying the payee. Payment could be in the form of salary, interest, rent, dividends, etc. The deducted tax is then deposited with the government. TDS helps prevent tax evasion and ensures a steady tax revenue inflow throughout the year.

The deduction status can be identified via a TDS check by PAN card. The TDS rate was reduced to 20% from the maximum marginal rate on PF withdrawal for employees who do not have PAN.PAN (Permanent Account Number): The Income Tax Department of India issues PANs, which are distinctive 10-character alphanumeric identifiers. It is compulsory for financial transactions like receiving taxable salary or fees, selling or purchasing assets above specified limits, and many other activities. PAN is crucial for tracking and linking various financial transactions and ensuring they are all accounted for in the tax records.

Steps to Check Your TDS Status By PAN Card

Due to the digital infrastructure that the Income Tax Department has provided, TDS check by PAN card is a simple process. Here's a step-by-step guide:

1. Visit the Official Income Tax Website:

   1. Go to the official Income Tax e-filing portal at https://www.incometaxindiaefiling.gov.in.

2. Log in to your Account:

   1. If you already have an account, log in using your user ID (PAN card), password, and Captcha code.
   2. If you do not have an account, you will need to register. Click on the "Register Yourself" option and follow the instructions to create an account.

3. Navigate to the TDS Section:

   1. Once logged in, go to the 'My Account' section.
   2. Click on 'View Form 26AS (Tax Credit)' For a TDS check by PAN card.

4. View Form 26AS:

   1. You will be redirected to the TRACES (TDS Reconciliation Analysis and Correction Enabling System) website.
   2. Agree to the usage terms and click on 'Proceed.'
   3. Select the relevant assessment year and view your Form 26AS in either HTML, PDF, or text format.

Form 26AS will provide a detailed summary of the TDS check by PAN card on your behalf and deposited with the government against your PAN.  So if you ever need clarification about how to know TDS deducted on PAN number, look for details such as:

• Part A: Details of TDS deducted by various deductors
• Part B: Details of tax collected (TCS)
• Part C: Tax payment details (other than TDS or TCS)
• Part D: Details of paid refunds
• Part E: Details of high-value transactions

Importance of a Regular PAN TDS Check

Regular TDS checks by PAN card are crucial for several reasons:

1. Ensuring Accuracy:

   It helps you verify if the correct amount of TDS has been deducted and deposited by the deductor. Any discrepancies can be promptly addressed.

2. Filing Accurate Tax Returns:

   Accurate TDS details are essential for filing your income tax returns. It ensures that you claim the correct amount of TDS and avoid any mismatches that could lead to notices from the Income Tax Department.

3. Planning Financial Transactions:

   Understanding your TDS deductions can aid in better financial planning and cash flow management.

4. Eligibility for Loans:

   Banks and financial institutions often scrutinize your TDS details to assess your financial health when you apply for loans. Having a clear TDS record can facilitate smoother loan approvals by demonstrating your financial responsibility and reliability to banks and financial institutions.

Connection Between TDS Status and Loans

Lenders assess your monetary stability and repayment capacity when applying for a loan, especially unsecured loans like personal loans. Your TDS records play a significant role in this assessment in the following ways:

1. Verification of Income:

   Lenders use your Form 26AS to verify your income. Regular TDS deductions on salary or interest reflect a steady income stream, making you a reliable borrower.

2. Assessment of Tax Compliance:

   A clean TDS check by PAN card indicates good tax compliance, which is a positive factor for lenders. It shows that you are responsible and financially disciplined.

3. Creditworthiness:

   Lenders consider the applicant's overall financial behaviour. Regularly checking and updating TDS records demonstrates your proactive approach towards financial management, enhancing your creditworthiness.

4. Loan Amount Determination:

   For self-employed individuals and business owners, TDS details on business receipts and other incomes help determine eligibility for the loan amount. A higher reported income through TDS can lead to higher loan eligibility.

How to Ensure Your TDS Records Are Up-to-Date

1. Regularly Check Form 26AS: Make it a habit to check your Form 26AS periodically, especially before filing your tax returns or applying for a loan.
2. Ensure Correct PAN Quoting: Ensure your PAN is correctly quoted in all financial transactions. Incorrect PAN can lead to TDS credit not reflecting in your account.
3. Communicate with Deductors: Ensure that all deductors (employers, banks, etc.) are depositing the deducted TDS promptly and accurately. This can be done through a TDS check by PAN card.
4. Rectify Errors Promptly: In case of any discrepancies, promptly communicate with the deductor and get the necessary corrections done.
5. Use the e-filing Portal: Use the Income Tax e-filing portal to view and manage your TDS records efficiently.

Take Control of Your Taxes – Check Your TDS Status Now

Being vigilant about your TDS check by PAN card is not just about tax compliance but is also crucial to your overall financial health. It ensures that you file accurate tax returns, avoid penalties, and maintain a clean financial record, which is essential when you need to take out loans. Your PAN card TDS is a key tool for effortlessly accessing your TDS details and staying on top of your financial obligations.

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