Income Tax Department Clarifies SMS on TDS Deductions
The Income Tax Department has been sending SMS alerts to salaried taxpayers informing them about the total Tax Deducted at Source (TDS) during the financial year. This message includes the TDS deducted by the employer for the quarter ending December 31st and the cumulative TDS for the entire financial year 2023-24.
Some taxpayers have misinterpreted the message, fearing they owe additional tax. The Income Tax Department clarifies that this SMS service, launched in late 2016, simply aims to inform taxpayers about their total TDS deductions. It’s a helpful tool for individuals to verify if the TDS amount on their salary slip matches the information provided in the SMS.
Tax Filing Timeline
Salaried people will need to wait until mid-June to file their Income Tax Returns (ITR) for FY 2023-24. This is because employers typically issue Form 16, a crucial document containing TDS details, by June 15th of each year. While the Income Tax Department‘s e-filing portal allows early filing, tax experts recommend waiting for Form 16 and ensuring Form 26AS and AIS are updated for a smoother filing experience. Form 16, issued by employers, includes details like TDS and Tax Collected at Source (TCS) deducted throughout the year, which are essential for accurate ITR filing.
