Rectification of TDS Mismatch in Form 26AS & Form 16/16A

Share

In some cases, it has been observed that there is a TDS Mismatch in Form 26AS and in Form 16/ Form 16A which should not happen. The TDS amount reflected in Form 26As and Form 16/16A should always be the same.

Form 16/ Form 16A is Tax Credit Statement which indicates the Tax that has been deducted on the payment that has been made. Form 16 is issued on yearly basis for tax deduction in income from salary and Form 16A is issued on quarterly basis for tax deduction on incomes other than salary.

Recommended Read

Form 26AS is basically a form which indicates that the tax that has been deducted has also been deposited with the Govt. In other words, Form 26AS is a tax credit form which indicates the tax deducted on your income and deposited with Govt. as per the Govt records.

Consequences of TDS Mismatch in Form 26AS and Form 16/16A

After deduction of TDS/TCS, the person deducting the TDS is required to deposit the same with the income tax department. As this Tax is required to be deposited with the income tax department, the TDS Amount reflected in the Form 26AS and Form 16/16A should always be the same.

In case the amounts reflected in Form 26AS and Form 16/16A are not the same, credit of TDS won’t be allowed to the taxpayer at the time of filing of income tax return.

At the time of filing of the income tax return, tax as computed as per the income tax slab rates. The TDS already deducted is reduced from the tax computed and the balance amount is the net tax payable/refundable.

In case the difference in figures as reflected in Form 26AS and Form 16/16A is not rectified, the Income Tax Officer will only consider the figures as per Form 26AS and will proceed accordingly.

Possible reasons for Mismatch of TDS

Before proceeding with the rectification of the same, it is important to analyse the reasons for TDS Mismatch between Form 26AS and Form 16/Form 16A. Once the reason is ascertained, you should approach the person who has deducted the Tax to get this rectified

The taxpayer should compare his Form 16AS with Form 16/16A and try to understand the reasons for the mismatch.

There may be several reasons for the mismatch of TDS. The most popular reasons for the mismatch of TDS which may have occurred due to negligence on the part of the person deducting the TDS are as follows:-

  1. Non filing of TDS Return by the person deducting TDS as a result of which TDS is not properly reflected in Form 26AS.
  2. Quoting of wrong PAN No. of the person whose Tax has been deducted
  3. Quoting of wrong PAN No. and TAN No. of the person deducting TDS
  4. Omission to include details of Payment of TDS in the TDS Return
  5. Quoting wrong Challan Identification No. TDS Payment Section in the TDS Return
  6. Wrong amount being mentioned in the TDS Return
  7. Quoting of wrong Assessment Year in the TDS Return
  8. Omission to include details of a deductee in the challan wise annexure in the TDS Statement

The reasons mentioned above are some of the most popular ones and there may be several other reasons as well.

How to rectify the TDS Mismatch in Form 26AS and Form 16/16A

The taxpayer should compare Form 26AS and Form 16/16A and intimate the person who has deducted the Tax about the same. If the reason for mismatch has been rectified by the taxpayer himself, the whole process of rectification will get faster.

Even if you are unable to identify the reason for mismatch, you should intimate the person who has deducted the TDS about the same. The person who has deducted the TDS will then file a Revised TDS Return with the correct particulars which will then get reflected in your Form 26AS.

Please Note that it does take some time for the person who has deducted your TDS to file Revised TDS Return. Even after uploading the Revised TDS Return, the Form 26AS on the income tax website does not get updated instantly and it takes time for the Form 26AS to get updated as well.

A Personal Finance enthusiast, Karan is the founder of charteredclub.com and loves to discuss about Money related matters.