CA. M. Lakshmanan

The Annual Tax Statement under section 203AA in From No. 26AS contains ‘Details of Tax Deducted At Source’ in Part A, ‘Details of Tax Collected At Source’ in Part B and ‘Details of Tax Paid (Other than TDS and TCS)’ in Part C basing on the data available with the department through OLTAS (On Line Tax Accounting System).

In a case where a particular Deductor deducts and if he either does not pay or if he fails to file the TDS return with full details in time, the assessee, from whom the tax is deducted, will not get credit for the tax deducted from him because this particular deduction will not find a place in the Form 26AS.  Then intimations are sent demanding the tax (already deducted) with interest. In such a situation top priority is to be given by the concerned officers for the returns filed manually and by the CPC for the e-filed returns to dispose of the rectification petitions filed with a copy of the certificate issued by the Deductor In these circumstances whether the assessee has to file the stay petition for collection of taxes, for the intimations processed at CPC, with the jurisdictional assessing officer or the CPC is not clear. Further the rectification petition and the stay petition are to be sent by ordinary post only since registered post are not accepted by CPC  and this procedure will result in unnecessary litigation at a later date regarding levy of penalty and interest for non-payment of taxes and non-acceptance of appeals due to belated filing  as there will not be any proof for filing these petitions.

Ultimately, where tax has been deducted and the certificate has been issued, the credit should be given to the assessee from whom tax has been deducted basing on the certificate issued by him even if the transaction does not find a place in From No. 26AS and appropriate action should be taken against the ‘Deductor’ who has either not paid the deducted tax correctly or not filed the TDS return correctly after due verification of the TDS certificate for its genuineness.

Many Public Sector Banks and Public Sector Undertakings neither deduct tax correctly nor file the e-TDS returns correctly in time and  certain Banks and Post Offices insist the deposit holders (who are already assessees)  to give Form 15G/Form15H to avoid the botheration of deducting, paying and e-filing, which in their opinion is cumbersome.  Whether they file the Form 15G and 15H within the stipulated time with the Commissioner of Income Tax is another question and even if filed whether the I.T. Department takes time to verify all of them and take action against the persons who makes false declaration is another big question.

It also happens that certain unrelated transactions appear in Form 26AS such as professional fees or contract payments are shown and tax is deducted, whereas the assessee in whose Form 26AS the payment appears is not at all having connections with Deductor.  This happens because of mistake in quoting wrong PAN while filing the ETDS returns.  In such cases, unless corrective steps are not taken immediately by the Assessing Officer/CPC in coordination with the officer who is in charge of TDS to eliminate such entries by calling the Deductor while these are brought to their knowledge by the affected ‘Deductee’ there is going to be false demands/refunds.

As of now if an assessee fails to deduct tax or deducts tax at a lesser rate or pay the deducted tax belatedly with interest  he can file revised ETDS returns with correct figures and these belated payments have to appear in the Form 26AS. But in the meantime if the assessee, from whom tax has been deducted belatedly, has filed his returns and paid taxes, he has to file revised return to claim the additional TDS, if the original return has been filed in time. Here also how many times and upto which date the revised ETDS returns can be filed is not clear.

To conclude the authorities, who are at the helm of affairs have to take corrective measures at the earliest to avoid huge pending demands/refunds and unnecessary paper  work and litigation.

the Article was first Published on 05th August 2010

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(Republished With Amendments)

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102 responses to “Problems in Credit For TDS & Form No. 26AS”

  1. A.K.Johari says:

    Dear Sir,

    My Form 26 AS is correct. Have checked all TDS certificate issued against Form 16 A and Form 16, everything is matching still at my incometax portal at TDS mismatch it shows TDS mismatch of Form 16 issued by employer and Form 16A issued by SBI. What to do?


    I am of the opinion that though TDS was created with a good intention by the Govt. the implementation is shoddy and Tax Payers are harassed in the era of computerisation. Some relief to Tax Payers isneeded urgently

  3. niks says:

    my supplyer consider tds in invoice but i have not shown full invoice so tds entry also missing, now how to manage previuse year tds missing entry.

  4. SOHIL JAIN says:


  5. sushil says:

    I have generated 26 AS certificate online. It is showing that my previous organization has credited a salary of Rs. 25000 into my bank account also organization has paid TDS of Rs. 3200. I have not got my salary of that month but still 26AS certificate is displaying so. what should I do. I have already dropped an email to my previous organization for reply, even I am not getting reply also from them. plz advise

  6. Navratan Dhanuka says:

    I and my wife work in the same company. We are both consultants and 10% TDS is deducted from our salaries and duly deposited. This time i find my company has deposited the deducted TDS of mine and my wife’s into my TDS account. Now it is showing in my 26 AS statement . And the necessary amount has not been deposited in wife’s account.kindly suggest way forward.

  7. lalit says:

    I have received enhanced compensation on rural agricultural land. Deductor deducted TDS @20 % on interest and did not disclose PAN while filing TDS return. Result of which there is no tax credit shown in my 26AS. I have filed my income tax return by showing interest income on compensation received by disclosing TAN of deductor and amount which has been deducted. My return is not processed yet and not received my refund. So is there any other provision or way to claim my refund???

  8. Dr ramnathsongh says:

    All queries,but no answer from u.
    This is bogus.waste of time.

    • Sandeep Kanoi says:

      Dear Sir,
      We are sharing knowledge and that itself soves lots of queries of may people. But its difficult for us to answer Individual queries as we have limited resources and time to answer the same.

  9. K.R. Radha Panicker says:

    I am Radha Panicker residing at Aluva, Kerala. I have SB and FD Accounts with State Bank of India, Aluva. SBI, Aluva is deducting applicable TDS from interest payments to me regularly. I have no accounts any bank in Nagpur, but in Form 26AS relating to Assessment Year 2015-2016, State Bank of India,Ramdaspeth, Nagpur has shown interest payments of Rs. 23440 against my PAN from which tax amount of Rs 2346 has been deducted. I have not received any payments from this branch of SBI. My investigations show that the said interest payments were made to another person having the name of “RADHA pANICKER” who resides in Nagpur. There is no response from SBI, Ramdaspeth, Nagpur or their controlling office in Mumbai. I would like to know how to get this mistake corrected.

  10. venkatramanarao says:

    For AY 2009-10,return filed manually at Mumbai.TDS was higher than the tax payable.While the tax outstanding was carried over upto AY 2015-16,and compounded with int under S220 and total outstanding was adjusted in the eligible refund for AY 2015-16.The TDS deducted was not uploaded so far .What is the remedy for the assessee?


    Though the CBDT has issued a circular stating that an assessee in whose case TDS is deducted will not be coerced to pay again, we the assessees are harassed and punished mentally and financially (spending money on post, travel, phone, transport etc.) for the fault of some one who deducted tax. A proper remedy needs to be found. My suggestion will be –
    1. Create a section in ITRs to show deductions (TDS) by whom, on what & when.
    2. Give temporary credit to assessee, pending verification with Deductor.
    3. Penalise heavily for wrong claims or if Deductor is found to have made a mistake, take him to task and give due credit to assessee.
    4. There should be a separate help line in CPC to note such cases.
    5. Such agony is incresing and Tax Guru need to take up with Government.

    My experience with Post Offices is unbearable.

  12. Narayan says:

    My wife gave 15H to her by around 20th April. But some FDs had a interest payment schedule for 10th April and hence TDS of Rs 300 related to about Rs 3000 of interest for the 10 days got deducted. Bank suggested the deducted amount be claimed as refund by filing IT return.

    Bank has now given a TDS certificate showing only the interest for these 10 days and the TDS on it. AS26 also reflects only these amounts. The total interest paid by the same bank for the whole year on all FDs is actually about Rs 280,000.

    At the same time, a private financial institution has acknowledged 15H, not deducted tax, but reported entire interest of Rs 18,000 to IT department as reflected in AS 26. I think this is the right way.

    In previous years there was no delay in giving 15G / 15H to the bank and hence there was no TDS deducted. From AS 26 we find no interest was reported by the bank on these.

    Should we now approach the bank and seek a TDS certificate indicating full interest for whole year, and the small TDS for 10 days. Should they have indicated full interest amount in TDS certificate? Should the AS 26 reflect interest for previous years?

    We had not bothered about AS26 reporting in earlier years as the gross income was below tax limits. This year the gross income is marginally above tax limit, and net income after availing 80C etc is below tax limits even without using 87A exemption. However since gross income is above 3,00,000, she is required to file return.

    My wife can file a return reporting full interest, establish zero tax and claim the refund. The only difference is bank report as in AS 26 is an interest of Rs 3000 and she would be reporting Rs 2,90,000 as interest.

    What should she do, get bank to issue a new TDS certificate indicating the higher full interest but same TDS, or just declare full interest in her income tax return, claim the refund of Rs 300 TDS paid, and file the return without bothering about the difference in interest reported in AS26 / TDS certificate?

  13. Hanif says:

    Sir, i have a query.i was checking my 26AS online for ay 2015-2016 and was shocked to see that some company has credited amount of rs 25000 and total tax deducted is rs 515/- and total tds deposited rs 515.this is done by may be accidentally giving a wrong pan number (which unfortunately is mine).Sir, what should i do now???? i was told that the CPC will take care of. Would appreciate if you can guide me please.

  14. gopal says:

    Sir I have paid challan on 06/02/2015 but bank has been write wrong TAN So problem has been create on credit taken and then bank also issue certificate regarding wrong Writing of TAN on Challan. So now whatb process should be follow…..Thanking you..

  15. Aswath says:

    I would like to know following.

    In 26AS form , only few banks interest credited will appear for which 15G/15H forms submitted even though interest not deducted. why other banks whee in which I have submitted my 15H not appearing in 26AS. Pls I would like to know what is flow of information from Bank to 26AS. Is it dependent on Charted Accountants while filing the return on the behalf of Bank. Pls clarify

  16. Ram kishan Rao says:

    someone please help
    my employer has deducted Rs 6000 towards tds from the salary for the month of 3/20129(paid in April 2011). but he has shown in AY 2011-12 instead of 2012-2013. he is not responding yo my requests. please let me know the remedy available to me
    Ram Kishan Rao

    • sharad mohan says:

      Pls approach your Tax jurisdiction ITO. He will do the rectification based on your application/ affidavit.

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