1127 (Tax Credit) Can taxpayer take credit of everything reflecting in tax credit statement (26 AS)? Project - Make Knowledge Free Video Link - https://youtube/watch?v=3Y2xcq5DhgQ Case Methodology - Harvard Case model Narration - For previous year 2013 14 , i had salary income of 10 lakhs on which company deducted TDS 1.3 lakhs TDS under section 192 . I had FD interest income of 1 lakh on which Bank deducted TDS of 10000 Rs under section 192 A ....i paid self assessment tax of X rs when i realised that the sum total of TDS credit available is not enough to meet my tax liability on total income as per slabs ! I also bought a flat for 85 lakhs from ramesh and while paying ramesh the due consideration ,i paid him 84.15 lakhs after deducting TDS from ramesh 85000 Rs and deposited it using challan 282 ( got a receipt , filled TDS return 26 QB ..registered at Trace werbsite got a TDS certificate 16 B and gave it to ramesh ) For last year , i had a refund case due to which i got a tax refund of 2000 Rs in current year .... Now all this reflects in my tax credit statement ! So for present year total income ,whatever my tax liability is , can i use all this tax credits or am i supposed to filter them to understand what is my tax credit and what is not ! Surely , as a buyer what i deduct TDS is not my credit ...it is tax credit for the seller ...it is not my money in th efirst place then how can it be my credit and if you see carefully the seller name is mentioned clearly in the deductee field ! Think of it like this , instead of paying seller 100 Rs , i am now paying him 99 and giving him form 16 for other 1 Rs ....which he can definitedly use for metting his own tax liability for his total income ! As far as tax refund goes , it is taxes that were deducted extra for my last year income so it is income for last year on which correct taxes have already been deducted , so it is not credit for current year but actually income of last year ! So clearly i am not supposed to use this as tax credit as well ! Other than this i can surely use Salary , Non salary ( bank interest ) TDS credit and self assessment tax paid to meet my tax liability , So , when you read your tax credit statement , ,please learn to differentiate credits from other tax entries because 26 AS is complete annual entry of all taxes that relate to your account (either as deductee or deductor ) Hope you enjoy the tut! Cheers , Amlan Dutta
Posted on: Thu, 01 Jan 2015 03:01:25 +0000
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