Ideally, the value of Tax Deducted at Source (TDS) should be the same in Form 26AS and Form 16 or 16A. However, sometimes some clerical mistakes, some wrong entries, and some omissions cause inconsistencies between the data. To understand it more precisely and deeply, let us first understand what are these forms all about.

  • Form 16 and 16A are tax credit statements that reflect the deduction of tax from the income of an individual or company.
  • Form 16 is filed annually for TDS on income from salary and Form 16A is filed every 3 months for TDS on income from other sources.
  • Form 26AS is a government attestation that the tax deducted by the deductor is duly deposited with the Income Tax Department.

TDS or TCS (Tax Collected at Source) is deducted from an income and the deductor of TDS or TCS is liable to deposit the amount deducted with the I-T Department. When the employer fails to deposit the deducted amount with the department on time, it sprouts the mismatch of TDS in Form 16 or 16A and Form 26AS.

Rectification of Mismatched TDS Liability

Equality is crucial for ITR filing

Equality in the tax credit of Form 26AS and Form 16/16A is a prerequisite to filing an Income Tax Return. It is important from the dual point of view- For computing the tax and For computing the refunds.

For computing the tax

It is important to know the TDS already deducted from the salary so that any additional tax on other incomes can be ascertained accurately.

For computing the refunds.

It is important to claim the TDS from the department when an excess TDS has been deducted.

Note: When the variations in the tax credit figures of Form 26AS and Form 16/16A are not rectified in time, then the figures of Form 26AS are considered by tax professional for the calculations. Therefore, one can use govt authorized Gen TDS software for error correction and mismatch related issues instantly.

Rectification of TDS Mismatch:

Responsibility of an employee – Inform your employer

If an employee finds any error while comparing the forms, he/she must inform his/her boss or employer who is responsible for deducting TDS from his/her salary. If the error is occurring because of the mistake/fault of the employer, the rectification is easier and quicker.

Responsibility of an employer – File a revised TDS Return

The employer needs to file a revised TDS Return with accurate information so that another mismatch would not occur.

Responsibility when IT dept sends notice – Online response on IT e-filing portal

When you receive a notice from the Income Tax department regarding mismatch of the tax credit, answer them online via Income Tax e-filing portal by selecting ‘Taxpayer is correcting data for Tax Credit Mismatch only’ under the options and filling in the appropriate details.

Note: Filing of revised TDS Return is a time-taking process. Once filed, it takes more time for the correction to reflect in Form 26AS. So, the best way to make sure that there is no mismatch in TDS is to regularly check your Form 26AS. Form 26AS becomes accessible from Income Tax e-filing account if the income tax return is filed online.

Reasons For TDS Mismatch:

We are highlighting some common mistakes that result in the disparities of TDS in Form 26AS and Form 16/16A.

  • An employer deducted TDS but did not file TDS return.
  • Furnished incorrect amount in TDS return.
  • Deductors quoted an incorrect PAN number of the employee.
  • Furnished incorrect PAN and TAN of the deductor.
  • Furnished incorrect Challan Identification Number of TDS payment in the TDS Return.
  • The assessment Year mentioned in the TDS return is incorrect.
  • The omission of any TDS payment from the TDS return.
  • The challan-wise annexure in TDS Statement does not specify employee’s details like name, gender, etc.
  • The amount of TDS claimed in the return is incorrect.
  • Wrong or excess TDS claimed in the return.

Author Bio

Qualification: CA in Job / Business
Company: SAG Infotech Pvt. Ltd.
Location: JAIPUR, Rajasthan, India
Member Since: 29 Mar 2019 | Total Posts: 11
I am CA Amit Gupta and having experience in tax blogging, I have more than 20 years of experience in conceptualizing, developing, and marketing software in the financial sector. Having worked from grass root level to the top management level, I have gained a profound understanding of the problems fa View Full Profile

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February 2024