Pro Tips: 5 ways to simplify 26AS/Form 168 reconciliation in Zoho Books
This is a guest post by Cappitall Want Network.
The importance of 26AS/Form 168 reconciliation usually only surfaces near the time of filing ITR. By that point, companies might have hundreds and thousands of deductions in their 26AS/Form 168. The chances of an incorrect or missing deduction increase without continual reconciliation.
Last minute reconciliation is costly in terms of time and money being left out. Here are five practical tips to ensure that your 26AS/Form 168 doesn’t hold any money and your working capital flows.
Curb manual reconciliation
Manually reconciling your book and 26AS takes several days and becomes more laborious as your customer base and transactions grow. One mismatch or missed deduction going unnoticed will keep cash from reaching your hands.
Pro tip 1: Automating the reconciliation between 26AS and Zoho Books can allow you to match transactions across PAN/TAN and invoice level. This lets your finance team focus on exceptions and edge cases instead of going through every transaction.
Validate deductor details ASAP
A single typo in PAN/TAN when your deductor files will prevent that transaction from showing up in your 26AS and leave you with a short deduction or missing TDS refund.
Pro tip 2: When continually checking your books and 26AS, flag mismatches as soon as you can. This gives you time to chase corrections rather than leaving everything for the time of filing.
Chase corrections systematically
After finding mismatches and verifying if they are on your deductor’s end, you need to follow up on your deductor to correct and file again. If there are many such deductors or an email that gets missed, your money is at risk.
Pro tip 3: Have a system in place for follow-up emails to deductors in the case of mismatches. Make sure that you are following up with them until the re-filing is finished and the amount is reflecting in your 26AS. A register that tracks the resolution status of mismatches will also be a useful record to have.
Have internal deadlines before filing
While reconciling and chasing corrections, some deductors may need multiple follow-ups to correct their entries and file again.
Pro tip 4: Keeping an internal deadline for chasing corrections well before filing time will create a buffer, giving you enough time to make sure all rectifications are done before the deadline.
Remember 26AS carries weight when it’s time to file
Since 26AS is the government’s record of TDS, it holds the most power when it comes to claiming TDS credits at the time of ITR filing.
Pro tip 5: When you are chasing corrections and fixing mismatches, if they aren’t reconciled by the time of filing, your 26AS deductions matter a lot. Reporting TDS deductions that aren’t reflected in 26AS will attract scrutiny from the Income Tax department.
Cappitall Want Network’s 26AS reconciliation for Zoho Books reconciles your 26AS and books from Zoho seamlessly to ensure your records and filing are error-free. Make your ITR filing smooth rather than rushing to correct and file.
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