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

Read Other Articles of CA M. Lakshmanan

(Republished With Amendments)

Author Bio

More Under Income Tax


  1. venkat says:

    this is not about TDS which involves somebody else. But I paid self assessment tax to sbi through cheque. after 4 days TIN confirmed receipt with correct PAN, challan number, date and amount etc. But still it is not reflected in form 26AS even after 7 days from the date of o payment. This unnecessarily delays ITR filling and submission. what is the remedy?

  2. Manish vaghadiya says:

    My issue regarding one well known firm in India deduct first month tds in partnership firm which is starting of my company.After one month GST is applicable in whole India then I started same name firm in ptoperiership firm.But after one year I fill incom tex return and claim TDS by showing 26 AS company fill same Partnership firm TDS continues till year end.which is mismatch in TDS what can I do to get my TDS claim

  3. 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

  5. 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.

  6. SOHIL JAIN says:


  7. 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

  8. 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.

  9. 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???

    1. 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.

  10. 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.

  11. 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.

  13. 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?

  14. 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.

  15. 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..

  16. 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

  17. 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

  18. Ram kishan Rao says:

    My employer has deducted tax at source for the month of March 2011 but uploaded during AY 2011-12 instead of AY 2012-13. I have made several requests but the same is not rectified. what are the remedies available to me against employer
    ram kishan rao

  19. Rajendra Wagh says:

    Sir I am central govt PSU employee in Bharat Sanchar Nigam limited in my assessment year 2014-15 my TDS deducted and shown in my 26AS by two TAN nos of BSNL one our district H/q and remaining by our state H/Q.I received notice and I claimed refund but only one TAN amount is considered and impose tax on me.
    Then I submitted rectification request for this by giving all details shown in 26AS in Dec-2014 but till date refund not processed no any change in status.What I have to do?Whether response to be filles after rectification reuest or only to wait for result of rectification request..please guide me…


    Dear sir,,
    I am Nivrutti join in company.i want help from you how to work 26AS TDS reconciliation work in excel work & also want match with tally TDS work .because i dont have i don’t have any idea.

    Nivrutti Lakhe

  21. prashant abhyankar says:

    Sir please give me advice my wife working as a teacher in zillaha parishad school nagpur zillaha parishad deduct income tax ass. year 14-15
    in the month of mar-14 but i am checking on income tax credit 26AS no any transanction pl sir what i am doing

    prashant abhyankar

  22. Dipak Kumar Dasgupta says:

    Sir, Retired in April 2013. Since May 13 to end of financial year 2013-14 SBI Sonarpur branch(10095) paid me Pension. I have a FDR for which tds deducted and the Bank did not upload my pension at all in form 26AS though the FDR interest and tax deducted have been shown. Even in form 16 they gave wrong figure of payment and did not show the tax deducted at all. Since April 2014 I have made protracted correspondence with different authorities from Chief Manager of the Bank including Chairperson of SBI. I have given them clear picture enclosing copy of my pass book showing the payment made to me and tax deducted. They paid me as pension of Rs.3,90,952 and deducted tax of Rs.6210/-.Now in December 14 in spite of my giving figures they changed the figure in form 26AS showing payment made of Rs.94,050 only and tax deducted Rs.6991/- when they actually paid/deducted tax as I mentioned above. I failed to get a correct from 16 and correct form 26AS. I could not submit by IT Return because of their negligence. How to sort out the problem?

  23. Gaurav says:

    I seek advise from Income Tax consultants / CA / CS / Legal advisers.

    I have a problem with my 26AS forms as all tax credit is not reflecting in it. Many govt departments have deducted IT and issued us manual TDS Certificate (Form 16A). As these forms are not issued from TIN Central system its not reflecting in 26AS. Thus IT has rejected these certificates and issued us demand notice for the same.

    Please advise how can we claim tax deducted

  24. Pranav Gandhi says:

    A false demand is raised by not giving TDS credit for AY2009-10 as deductor had filed return with PANNOTAVAIL status. Assessing officer is demanding to get the TDS credit updated in 26AS in spite submitting the TDS certificate. The dedicator is not willing to refile their return and update the PAN. What can be done?

  25. Dinesh says:

    We have deposited excess TDS and issued the TDS certificate to vendor, is there any way out to claim refund from the vendor

    Dinesh Mittal

  26. shailesh davra says:

    hello sir,
    i not get any TDS amount from department since last 1.5 years
    i told my advocate to claim that in written or online , but he told me that it is not possible to claim in written or online, department will send your TDS Amount any time which is not fixed.

    so i want to know that is there any procedure (online or offline) to claim own TDS amount from Department.

    Shailesh Davra

  27. KULENDRA RAM says:


  28. n panda says:

    Wrong computerisation has created faulty 26AS.My employer certified deposit of TDS Of AY2009-10 by the deductor(employer ,a Govt PSU) and rectification in 26AS applied by me but CPC ,Bangalore not creditting TDS.There is no e-mail address of CPC for communicating.Form-16 certified copy submitted in ITO but nobody is listenning.what should be done by me please advise.
    n panda

  29. RAJENDRA BHATI says:


  30. Sekar says:

    I have filed IT returns for the FY 2009-2010- (AY 2010-2011). I had paid fringe benefit tax to the employer and he has in turn given me a form 16 stating the tax paid.
    But the tax credit is not shown in the form 26AS for the corresponding AY.
    The issue had been transferred from CPC to the AO and AO has raised a tax demand in my name.
    When I want to file an online rectification, it asks for the CPC communication Number which is not available with me as the demand has been raised by the corresponding AO.
    Even the demand raised was known to me only when I checked the outstanding tax demand in the internet by chance. Due to this demand , the advance taxes paid by me for the future years even though reflecting in the form 26AS are not considered and additional tax demamd notices are being sent.
    Kindly confirm how to solve this issue.

  31. prasad says:


    In 26AS wrongly entered TDS credit to my Pan No. I requested to deductor to rectify the TDS return to file. Deductor is jharkand electricity Board. He is not listening say as our records my pan no. does not exist. It is mistake of IT person. How can I file returns. Please do the needful in this regard

  32. Anil Himmatlal Parmar says:

    Sir, My employer has deducted tax of Rs.10,000/- for the financial year 2013-14 from my salary of March and April 2013. Even though I had given my PAN for the purpose, no PAN was mentioned by him at the time of depositing the tax with the concerned authority. As a result, the form 26-AS does not show credit of that amount in my PAN account. I have made umpteen requests to the deductor employer but of no avail. What remedy is left with me in such a case? Please guide.

    Anil H. Parmar
    M. 9879561685

  33. Ganesh says:

    My mother is a Senior Citizen, holds Savings Bank Account in Bank as a First Holder. I am second-holder of the Account. She placed a Fixed Deposit with the bank from the same account. She does not hold PAN. I am holding PAN.

    For this FD interest, Bank has wrongly issued TDS certi (16A) showing details of my PAN, my name and address.

    The TDS certi (16A) must be issued in my mother’s name.

    Please guide me in this matter.

  34. SHANMUKH RAO K says:

    Dear Laxmannan,

    My Greets,

    What is the Section of Income Tax that deducted TDS to Private Limited Company but not showing in 26AS and not giving any reply.

    Please reply.


  35. Sksharma says:

    I am rtd. Person from up govt services . TDS for AY2012-13 has deducted from my salary, but not down
    Loaded by employer at form 26AS .I made three reminders to employer but no action has taken by him.
    IT Dept. showing outstanding demand in my name. It may cause problem in future . Pl advice me at my
    Mail , the action taken by me to rectify this & punish the employer who is actually did mistake at his end.

    With hope of early response . THANKS many man


  36. Rajendra says:

    I am a govt employee. My employer has not filed the quartly e returns. because of this a demand has arised. because of the fault on the part of employer, I am receiving notices and my later assessment orders are also not finalised and my refunds are held up. is there any clause to punish the employer who is actually doing the mistakes. please reply.

  37. prasad says:

    Amount was deducted frm my salary of february 2011. but it was not shown in tds return. I have got the tds return revised before 8 days. when can I see the corrections in 26as form. please tell me.

  38. k c dash says:

    I filed my return on 23.05.13 for the assesment year 2013-14. At that time I had only 5000 rupees income from FDS in 26AS.But later on I found on 26.06.13 that 30000 rupees income from FDS in 26AS.What to do now.Will I again file the return.

  39. Vishnu Prasad tiwari says:

    Hi i am vishnu prasad tiwari hcl infosystem has deducted the tds in janu 09to aug 2009 i am apply for the refund in income tax office pratapgar for tds refund in june 2010 but there is no refund till now when i consult income tax office pratapgarh i got information that company is not done e-filing what i do. i our refund is done or not what i do.

  40. Sebastian says:

    my employer has deducted the TDS.But he has not filed the TDS return. what is next step as an employee.Where to complain? I want to claim back the tax so deduccted

  41. sukumar says:

    Assessee did not disclose certain income ( though TDS made by payer ) in his return of Income and also not claimed TDS credit
    Assessing officer detected the Income from 26AS
    Can rectification u/s 154 be done or the case should be reopened u/s 147 followed by issue of notice u/s 148 ?

  42. HARSHDRAI says:

    TDS is tedious but may be friendly by way of introduction of “TDS Challan Cum Form No 16 A”.That central govt. should design TDS Challan-cum-Form No16A for 194A etc.,as per proposed sec.194LAA, to avoid many problem. That only extra five information i.e. Name-Add.-PAN of the payee,amount dt. & nature of payment,shall be filled by the deductor in the challan.That all the information required for 26Q are already appeared in this challan hence there is no requirement of filling Form No 26Q & preperation of Form No 27A.That NSDL,Bank,local franchies get charges from
    govt.but TDS deductor is UNPAID SERVANT OF GOVT. etc. If this challan is prescribed/notified then the deductor save fees for TDS Work, Charges of 26Q,Form no. 16A etc.No separaate issue of Form No 16A by the TDS deductor by downloading the Form No 16A from NSDL’s website,as all the details are available in this challan.The I T Department on producing TDS Challan-cum-Fdorm No 16A, should give credit for TDS

  43. SD MAKASHIR says:

    My IT returns have been filed manually the tax paid matches with AS26 Yet AO has posted huge demand on CPC PORTAL Revision petition for a/y 07-08 is pending with concerned AO for over ayear now. Demands are posted also for A/y 08-09,09-10,10-11. AS26 MATCHES WITH TAX PAID BUT DUE CREDIT IS NIT GIVEN BY THE AO.
    What am I to you Pl guide

  44. pramod Kumar Basotia says:

    In the assessment year 2009-10, company filed ITR and send copy to CPC, Banglore. Credit of TDS already in Form No 26AS. we sent various reminders to cpc to issue refund voucher. we obtained a copy from postal authority to varify that my documents are already received by cpc but cpc not is position to reply my singal letter and we are unable to find out the status of the ITR or position of refund, please suggest what to do or what is the legal solution of the issue.
    Pramod Basotia

  45. ASHOK says:

    We are a subcontractor, And want to know that if tds (IT) deducted but not deposited by the limited company so far. so what can we do? Our financial year was 2011-12. Can we will claim with a legal notice or any other procedure for collect the TDS?

  46. R Ravichandran says:

    I am working in Central Govt (Min of Defence) and they are deducting tax in my salary and the same is submitted to CDA. However, the tax deducted is not appearing in Form 26AS to enable me apply for refund. Kindly let me know the procedure and whom to approach.

  47. MANASI SAHOO says:

    Refund has not been issued till this date even after it matches with 26AS(credit statement) for assessment yr 2011-12.I filed my rtrn dtd 08/09/2011 bearing efiling no 282073060080911

  48. Bihari shah says:

    My son has been allotted PAN ANWPS3102J and has been filing his IT returns against this account.
    Suddenly while trying to register his account for e-filing, we find that his PAN has abruptly changed to AUOPS4511L without any intimation to him. while all TDS challans have been made by deductor(s) against earlier PAN.
    Please let us know how we can get credit for the TDS credited to the current (new) PAN or if there is any method for getting the earlier PAN restored?

  49. dattatreyahg says:

    There are only Questions here. Important ones.But no answers are forthcoming. I have seen many such queries answered quickly by experts at .moneycontrol. Readers may like to see that.

  50. dhaval says:

    hello sir
    i dont know very well about tax law.
    this is my first time of tds deduction experiences.
    deductor  not give me a any certificate or my 26 as from blank in nsdl website.
    they tell me that we will send tds certificate.
    till date i cant received  any certificate .
    what i do sir?????
    help me sir…


    I am a sr. citizen. I worked in Jaiprakash Associates Ltd. and subsequently in Jaypee Fertilizers & Industries Ltd. upto 31st December during the year 2011-12. My employer wrongly made excess deduction of Rs. 67,000/- + on a/c of TDS during the assessment year 2010-11and deposited the same with the Income Tax Office. Till date, I have not received the refund.I am a retd. person and do not get any pension. My mother is above 80 and is critically ill. Its really serprising that there is no punishment to the employer for such a serious lapse and and an innocent person like me is suffering for the same. Govt. should be urged to take penal action against such irresponsible employer and protect the innocent employees. Why should I suffer so much for no fault of mine?

  52. naik v r says:

    i have one doubt . if tax is deducted and deposited with ito but only due to not feeding PAN NO they have refused there right claim . I am of the opinion that if banks are issuing TDS cirtificate and amount is not very big ITO must refund the lawful refund on the basis of certificate given by bank as you know banks are use to deduct tax at source and deposit within stipulated time by remitting the same to ITO . Is any circular is their for such refund 



  54. bala says:

    This article is very informative. I am facing the similar problem with State Bank of Mysore. The Bank had issued TDS certificate for FY 2010-2011. But these deductions are not appearing in 26AS. I bought this matter to concerned Branch Manger multiple times and no action was taken on it. He simply puts the blame on the person who uploaded the data. 
    I am afraid that IT-Dept will raise a demand note for the shortfall of the TDS claimed.

  55. Nilesh says:


    In FY 09-10 one company has deducted TDS of Rs 2482 on one of our services. For the same they have issued us Form 16A as well, in which our details provided are correct. But it seems there has been some mistake in filing TDS returns from there side as the amount is not getting reflected in our 26AS form.

    As the amount is not big they are not willing to refiling the returns. Now kindly let me know how can we get the refund of that amount as it has been paid to IT Dept.

    Kindly suggest some way as CPC is telling to contact deducter for refiling it and deducter is not refiling it giving some excuses as amount is less.

  56. Ram says:

    Hi All,
    I have my 26AS form downloaded from the incometax department, It comprises details against my PAN number “ABCD..”.i.e 26AS contains the following;
    TDS deduction – Present with details
    TCS transactions – NIL
    Details of TAX Paid – NIL
    Details of Paid Refund – NIL

    However , when I requested for TAX been paid against my PAN number , incometax department stated that there is no incometax details against my PAN number in my ITR.
    I am kind of confused, when I have TDS deducted against my PAN number , (which is through my ,small business). How can incometax department cannot have details of that I have paid tax. Am I not tax payer? If I am tax payer whom to ask for the official confirmation that I am a tax payer.

    Request to please clarify

  57. surendran k says:

    Thank you for the awareness created.
    in spite of best efforts and several visits to Deductor’s office (SBI and Post office- Chennai) I am not able to get TDS amount shown in my A26 form. In the TDS cert they are not showing details of payment to Govt account.
    I had problem in the past also with IOB and PO and lost money as refund was denied. I am e-filing returns and therefore not able to get any credit based only on TDS certificates issued by Deductors.
    I end up paying tax, fines, travel expenses to deductor’s offices and waste my days pursuing the case without any success while the Deductor is comfortably sitting in his office. Totally unfair system to Tax payee.
    IT authorities should permit atleast Sr Citizen tax payers to pay tax on interest income with Advance tax considering peculiar difficulties they face in pursuing the case

    1. VS says:

      I can quite see the hardships you are facing as I am also in an almost similar situation.

      A nationalised bank in which I have a savings account has made enormous errors in submitting the correct information and this is being reflected in Form 26AS. This in turn has also affected the TDS figure which is highly “inflated” in comparison to the TDS certificate issued to me. On bringing this to the notice of the bank, I was informed that this job has been outsourced and they admitted that errors are made by them and the branch has no control over it !!!

      Auditors simply say that we have to insist that the bank sends a revised statement to the Income Tax Dept but that is simply a Herculean task. As a customer I feel very helpless in this matter of mismatch between the TDS certificate and Form 26AS. There seems to be no solution at hand and I only see the woes of the customers as no one is able to offer the correct advice.

      The TIN (Tax information Network) has issued a circular in May 2011 which states that TDS certificates will have to be issued through the TIN website in future. I sincerely hope that this will completely eliminate the mismatch problems and leave all the honest tax payers at peace.


    Dear Mr. Laxman,

    I am facing a problem.

    Despite my providing PAN details to the bank, they deducted TDS @ 20% on Interest earned by FDs. In fact they had mentioned my PAN number on TDS certificate issued last year which proves that they have information about my PAN number.

    This is not all. I found amount of Interest earned & TDS from statement of FD through my Netbanking account. I checked my 26AS form & found that they made mistake in the value of Interest paid by them on FD in 26AS form. They simply doubled this value (& effective TDS becomes 10%).

    Is there a way by which Interest paid value shown in 26AS be corrected? If yes,

    I am not sure if they know the procedure for it & therefore, can I read the procedure some where on Net? If yes, kindly send me the link.

    Looking forward for your reply.

    Thanking you. Best regards, RAKESH

  59. dattatreyahg says:

    i was thinking that the few problems on t d s which i shared with tax guru,were bothering only me as an individual. looking at the number of responses to mr. laxmanan’s well articulated write-up,it looks these are serious problems affecting many. it clearly shows a lack of application of mind while framing rules. i(we)know now that a serious problem exists and it is a systemic fault. this should not be left here as a matter of just academic interest.this should be pursued to its logical end to get full protection to t d s deductees as they are totally at the mercy of deductors and i t dept. if tax guru can go a step further in projecting this to the highest authorities for immediate remedial measures,he will be doing a great service and will be remembered with gratitude. g. dattatreya

    1. Rajan says:

      I totally agree with sir…. please do something taxguru as it is a situation which make the deductee handicap and end up paying unneccessary tax to the government.

  60. v swaminathan says:

    “…….as a first step, seek and obtain the required clarification from the payee,…….”


    In the above context, the word – ‘payee’ should be read ‘payer’

  61. v swaminathan says:

    As regards the numerous problems and views aired, it is prudent for one to be focused on the mandate of section 205 of the IT Act, which is loud and clear.
    It bars a direct demand on assessee to the extent tax has been deducted at source (by the payer of ‘income’ liable for TDS).
    So far as the ‘payee’ is concerned, his obligation is to furnish the requisite particulars of the ‘payer’ and ‘TDS’ in the tax return. In the normal course, therefore, the revenue is expected to proceed on the premise that the information so furnished is correct and complete. Accordingly, as natural justice demands, the revenue should, in all fairness, in any case of ‘mismatch’ or the like, as a first step, seek and obtain the required clarification from the payee, and only thereafter, if at all that becomes necessary, from the payee, before proceeding any further. Any precipitate action, such as straightaway raising a demand on assessee, without a proper verification of the factual position, will be a blatant violation of the above mentioned mandate. That will also result in, otherwise avoidable, hassle and hardship to the assessee.

    1. Surendran k says:

      Dear Sir,
      Inspite of representation to CPC, Bangalore with copy of TDS issued by IOB, chennai(entry not showing in 26AS) and revised return filed correcting an entry error for Short term capital gain I am yet to see the denied Refund amount of Rs. 2785/- or a response from CPC for AY 2009-10
      I am afraid that a Demand Note is to be expected for AY 2011-12 as I am unable to get 26 AS corrected by SBI and get 26AS entry made by Post office inspite of best efforts.
      Hope IT autorities will be receptieve to tax payers 26AS related problems and spare them the pains when TDS certificate is available

  62. pmr.gowrissankar says:

    wish to add that in the latest communication from CBDT (instruction no. 5/2010 dated 21.07.2010) to the various CCITs it has been stated that “In all the returns filed in ITR-1 and ITR-2 for assessment year 2009-10, where the aggregate TDS claim does not exceed Rs 3 lakh and where the refund computed does not exceed Rs 25,000, the TDS claim of the tax payer shall be accepted at the time of processing the return,” It would have been more usefull if it is made applicable to the current assessment year 2010-11 and for all the ITRs instead of the restricting the same to Assessment Year 2009-10 and for ITRs 1 & 2.


    I also have doubt if there is some mistake in the intimation u/s 143(1) sent by CPC then where should one file ractification application?

    In the Form V generated after efiling of return, the designation of A.O (which may be called jurisdiction under which the assessee falls), is shown as the local jurisdiction where the assessee’s address appears on the ROI.

    But the jurisdiction to issue 143(1) intimation of efiled returns has been given to the commissioner at CPC.

    So where should we file ractification application, is a big question in my mind.

  64. CA Uma Kothari says:

    In case of PAN where AO has not send refund, on top line of report of AS 26 it is shown as if the PAN is wrong or non existing . This need to be corrected to avoid confusions.

  65. CA Dev Kumar Kothari says:

    The article and various comments are interesting and shows practical problems and ground realities. No doubt there are still teething troubles at various levels, and mistakes in data entry and delayed submission of online returns of TDS are contributor to the situation of AS 26 not showing full credit. However, it is also true that there has been considerable improvement over a relatively short period of time, and we can expect more improvement in near future.

    What is disturbing is that in-spite of AS 26 showing credit and return of income having been filed long ago – more than two years ago, and assessment having been completed u/s 143.1 and no issue of notice for scrutiny, the department is not sending refunds by ECS or cheques wherever refund amount is larger. Only smaller refunds are sent timely or quickly to make publicity.

    How to change practice at offices of AO, of general ‘cashiers psychology’ that some one should come to take payment, even when payment should be automatic?

    Government must take stern action against omission of officers and staff in not sending refunds even when credit is shown on AS 26, and assessment is completed (deemed to have been completed) and assessee is entitled to refund.

  66. anup kumar jain ca, Ludhiana says:

    Form 26AS/ TDS form issued by deducted show correct amount while department AST processing system shows lesse amount. Authorities are unable to resolve this problem.

  67. G. Padmanabhan says:

    I agree with Mr.A. L Chaudry. Canara Bank also issues defective and outdated Form 16A not only to the depositors but to their pensioners. Nor does the bank file Form 26 AS. I have taken up the matter with the concerned Branch. The reply was astonishing. “What is there in our system loaded by the head office only is used and the branch is not at fault” quips the Manager. Similarly TATA Motors. I
    pointed out that the TDS is shown as “U”. I asked them to rectify. No response so far. Unless punitive action is taken against the deductors, this malise will never end.

  68. AJAY GARG says:


  69. Noshir C.A. says:

    Mr. Lakshmanan has raised pertinent problems faced by all taxpayers for no real fault of theirs. It is the common taxpayer who is made to run around. It is utopian to think that the Department will ever be able to successfully do away with issue of TDS Certificates in the foreseeable future, which is its ultimate objective. If the Department is really serious in not harassing the taxpayers, it should continue to allow credit on the basis of TDS Certificates till it perfects its own TDS system.

  70. CA.S.Muthu Vijayan says:

    Thanks for the timely article CA.Laksmanan. Now the IT Department has been informed to process refunds more than Rs.10.00 Laks from the concerned jurisdictional AOs. Again they are not issuing the refunds as TDS from certain deductees are not found place in the Form 26AS. Had the entries are in the Form 26AS the CPC would have issued the refund. And it is not known why processing of returns have been passed on to concerned jurisdictional officers with same procedure. At least they can process the refunds by getting confirmation letters from the concerned deductees and later action may be taken on the defaulting deductees. At least the department can save interest on the refunds issued.

  71. Shirish Karnik says:

    I think the present 2 step system i.e first paying Tax and then filing TDS retun is converted in single step it may help solving majority problems. All details of the deductee should be required to be submitted at the time of payment of TDS into Government treasury.

  72. Tapas Debnath says:

    Thanks for your very informative article. I am also facing such problem in case of my company where I am handling the TDS matter. I have deducted TDS from Directors’ remuneration, deposited through net banking and also filed return on time. Now just few days before I & one of our director have received a letter from I.Tax stating that the amount deducted and claimed by the director are totally mismatched. But surprisingly Form No.26AS of the particular director are showing total deduction and deposited are same as the Form 16 of the company showing. Please let me know what to do in such situation.

  73. A.P. Agrawal says:

    A problem has also been encountered when the PSU Bank and other PSU deductors have issued a consolidated certificate without giving separate details of deduction in each quarter. Now there is mismatch and the refunds are held up for no fault of the investor assessees.

  74. ravindra says:

    Since the systems are online,computer based, errors of om-mission and commission by tax collection system participants should and must attract the provisions of information technology acts wherein punishments are severe and such misplacements of taxes collected are treated as misappropriation of money and not just reconciliation issues where the assessee can be made to run around for no fault of his.

  75. Jose Cheruthony says:

    The system introduced by the department is informative and usefull.But most of the deductors especially Gov.Departments, Panchayaths, Banks, Post Offices etc not uploading the information to the NSDL website result in demand for assessee from Dept.The ITD take necessary action againt the deductors who donot file the return on due time otherwise this system leads to huge demand and burden on assesse.

  76. venkat says:

    SBI is sending a CONSOLIDATED list of TDS deductions and not on the name of individual clients with their PAN. So these are not reflected in the form 26AS(in the CDSL statement). The finance ministry should take it up immediately with the banks and other deductors.

  77. CA PremChand says:

    If CBDT wants the assesses to be responsible then please do away with TDS and let the assesses pay advance tax and be responsible for their own actions and not pay for mistakes committed by others.
    I strongly agree with Mr Raj.Assessee can not be asked to pay twice,once as TDs and secondly for default of the deductor.
    AS THE tds is deducted as per IT rules because the department have no trust in the payee,than why CBDT demand tax from the assessee for his no defalt.
    CA Premchand

  78. CA Prashant Banthia says:

    The biggest problem is that no where in the system government is putting pressure on assessee to file TDS return on time and correctly. Due to the late or incorrect deposit assesee has to accept what every is given to him and return and then file rectification every time…….it’s high time that department should first set up system that TDs returns and bank entries of advance tax and self assessment tax are file correctly by them.CBDT should also help that bank refuse to accept small payment and want cheques on every payment………..thus challan is given after 5 days by bank…….. thus there are delay in filing returns

  79. A.L.Chaudhary says:

    Many of the deductors who have deducted tax are not uploading the information on NDSL web site for FORM 26AS. I have FDs with PSU banks and reputed companies which includes TATA group and SBI also . Some of my TDS is information are not appearing in FORM 26AS while others are with remark as U Unreconciled. I have taken up the issue with bank and compnay but no solution. There should be penal provsions for defaulting deductors for not putting TDS information on NSDL web site.
    I am not getting credit for my TDS. I have spent lot of time and money on trasport for visiting SBI office several times but no solution.

  80. Raj says:

    If CBDT wants the assesses to be responsible then please do away with TDS and let the assesses pay advance tax and be responsible for their own actions and not pay for mistakes committed by others

  81. c.a.naresh gupta says:

    in fact govt. is the biggest deductor and they are short of immune from the penal action from the other hand of govt i.e income tax deptt. they are,therfore, indifferent to the hardship of general people and never take corrective action inspite of repetitive request to do the same.

    govt includes all the wings of govt agencies, banks etc.

  82. s.k.goel says:

    I am a retired senior citizen. Banks namely SBI & ICICI deducted tax from the interst paid on my savings but the same is not reflected in my FORM-26AS. Inspite of repeated request to the home-branch and e-mail to the greivance cell, nothing has been done.
    Unless the government imposes PENALTY on the defaulter, things are not going to improve.

    I suggest the penalty should be 50% of the deducted amount not reported/wrongly reported OR Rs 1000/= whichever is MORE and the same should be credited to the Assessee’s account. It may provide a little compensation to the assessee for the unnecessary work load created by wrong-doing of the DEDUCTOR.

  83. CA Arvind B Karnik says:

    No doubt this article is useful for those who should understand the importance of it. Meanwhile one of the Point also need to be covered along with what is said in the article is:
    You find that the TDS paid by others and Advance Tax and Self Assessment tax appearing in 26AS is not end of it. I have found in my own case for AY 2008-09 that the full credit is not given for TDS as well as Advance tax paid while assessing the Return of Income as appearing in 26AS.
    Tax authorities at the level of Dy Com. has commented that “since you have paid tax at location other than your jurisdiction, it does not appear in our system and hence no credit is allowed. You better pay at location of Assessing Office to get the credit correctly.” It is hightime that CBDT should announce elaborat policy on the credit of tax which would be binding on Income tax department and Assessees alike. Probably this would be a step forward.

  84. ASHWIN GALA says:

    Problems for “credit for TDS” needs to be taken up with the Dept.There is one more issue of year of credit. When (1) the Deductor deducts as per his system of mercantile accounting but the deductee claims in other year as per his system of Cash accounting & (2) When the deductee raises the bill at end of financial year but the deductor accounts the bill in beginning of next year.In both this cases the deductee is in trouble to get the credit for TDS

  85. Good thought to deliberate for the assessees as well as the Department. says:

    can someone apprise as to what is the legal aspect in the following situation:
    a) if the employer deducts TDS for salary paid for part of the year as evidenced by Pay slip and does not deposit the TDS and also does not issue form 16
    b) For part of the year for which salary is not paid, whether such unpaid salary also forms part of the salary even though there is no Pay slip, for the purpose of determining Taxable salary?

    Will the employee be treated as assessee in default and be required to pay for tax to be paid on the salary received + accrued but not paid even before 31st July 2010.?

    Shall appreciate if any judicial pronouncement can be cited to support the assessee who has been paid salary less TDS.

  86. CA Gajanan Badve , Kalyan says:

    If we follow the current system very correctly then there are lot of benefits. Firstly there is no need to issue TDS certificates as the Deductee can check it out in Form 26AS on line on NSDL website.
    Secondly there is no need to wait for TDS certificates and thus ROI can be filed very early. But there are also some practical difficulties. Not all deductors are having the expertise of filing correct E TDS retuns. MOreover the process for Correction Statement is very cumbersome. Why dont the dept develop a program in a way that the deductors are only required to File the Excel file of Deductee sheet & Challan Sheet?
    The program should pick up the data & update in OLTAS.

  87. anand jhunjhunwala says:



  88. Mahesh says:

    Hi Mr.M.Lakshmanan

    Thanks a lot, this is very informative, and it is right the authorities have to take corrective actions in order to reduce unnecessary paper work and litigation.

Cancel reply

Leave a Comment to ravindra

Your email address will not be published. Required fields are marked *