Resolving Discrepancies Between TDS Statement and Form 26AS:

Resolving Discrepancies Between TDS Statement and Form 26AS Form 16 is given to you by your employer before you file your income tax return for a financial year. It shows the tax deducted from your salary. Form 16A is used for showing tax deducted (TDS) from other income like interest or dividends. All the tax figures you see in Form 16 and Form 16A must also reflect in your tax summary, Form 26AS. But occasionally, there can be discrepancies on account of minor errors or clerical mistakes. We will see in this article what these discrepancies can be, why they occur, and what issues they can create.

What is a TDS Statement and Form 16?

Anyone who makes payments that require TDS (Tax Deducted at Source) must file a quarterly TDS return. This return gives information about:

• Who received the payment (called the deductee)
• What was the payment for
• How much tax was deducted

From these TDS statements:

• Form 16 is prepared annually for salaries
• Form 16A is prepared quarterly for other income, like interest

What is Form 26AS?

Form 26AS is a summary of all the taxes related to your PAN card. Here’s how it works:

• When someone subtracts TDS from your income, they transfer it to the government.
• Banks and other deductors upload this data to the government’s system.
• On the basis of this, Form 26AS is generated.

Form 26AS shows:

• Total income earned
• TDS/TCS deducted
• Any advance tax or self-assessment tax paid

Why Fixing Mismatches is Important

When you file your Income Tax Return (ITR), the system can pre-fill your data using your PAN. But if Form 26AS doesn’t have the correct information:

• You can’t use the pre-fill feature
• Your return might get rejected
• You may get a notice from the tax department
• Your tax refund may be delayed

To avoid this, make sure all TDS details are correct and match in both TDS statements and Form 26AS.

Common Reasons for Mismatches

TDS in Form 16/16A may not match with Form 26AS for the following reasons:

• TDS not deposited on time
• Wrong amount entered in TDS return
• Incorrect PAN mentioned
• Mistake in challan number (CIN)
• Wrong PAN/TAN of the deductor
• Wrong assessment year selected
• Incomplete or missing details in the return
• Mismatch between the actual TDS deducted and reported

How to Fix These Issues

The maximum number of mismatches takes place because of wrong details in the TDS return. To fix it:

• Contact your employer or deductor and ask them to file a revised TDS return with the correct details.
• If you get a notice from the Income Tax Department, you can respond online and explain the reason for the mismatch.

What Happens If It’s Not Fixed?

With automated ITR processing, mismatches are quickly noticed. The tax portal indicates your Form 26AS, so you can check and match it with your TDS details. If not fixed, you may face problems such as:

• Return rejection
• Delayed refunds
• Extra paperwork to respond to notices

So, always make sure your TDS details and Form 26AS match before filing your ITR.