ITR Filing: Correct Mismatches between Form 26AS and Form 16 before filing Your ITR

The first step in submitting your income tax return is to check and compare Form 26AS to Form 16. Correcting discrepancies between the two is essential for avoiding income-tax notices.

Form 26AS is a consolidated tax statement that includes taxes deducted, tax credits, income sources, tax deducted at source (TDS), and tax collected at source (TCS). It aids taxpayers in tax assessment by verifying if TDS and TCS are in line with actual income.

It streamlines the ITR filing process by providing a comprehensive summary of all tax-related information. Form 26AS also serves an important role in reducing tax fraud, assuring tax compliance, and minimizing tax disputes.

Comparison Between Form 26AS and Form 16

Employers who deduct tax under Section 192 must provide Form 16 (TDS certificates) to employees. These certificates, available through TRACES (TDS Reconciliation Analysis and Correction Enabling System), include full details of the tax deducted from the employee’s salary income.

When comparing Form 26AS to Form 16, ensure sure all of the information matches. The most important details to match are your permanent account number and the amount of TDS deducted.

Confirm that the revenue on Form 26AS matches Form 16. Examine the disparities in compensation, perquisites, deductions, and allowances.

Confirm that the taxes deducted by your employer were properly transferred into the government’s account. If TDS is deducted from your salary but not deposited with the government, your Form 16 and Form 26AS will not match.

Omissions in the deductor’s records can result in unpaid taxes, which may require payment. Prefilled data on Form 26AS may differ from actual computations in the ITR. Such mismatches cause delays in ITR processing and refund issuance.

Discrepancies between Form 26AS and Form 16 may trigger an investigation by the I-T department. Failure to correct these inaccuracies may result in a defective return notice under Section 139(9) of the Income Tax Act. Notices are distributed via email or postal mail and can also be accessed through the e-filing portal.