ITR filing: What to do when TDS details are not matching in Form 16, 26AS, and AIS?

The deadline for filing the Income Tax Return (ITR) is fast approaching, thus, explaining the vulnerability to making mistakes while rushing through important details about income and its various sources. With the deadline looming near with each passing day, tax experts advise avoiding any last-minute delays or hassles to prevent potential challenges. Among these challenges is the possibility of a mismatch between the Annual Information Statement (AIS), Form 26AS, and Form 16.

During the filing of the ITR form, many taxpayers often come across discrepancies between the AIS, Form 26AS, and Form 16. These mismatches can unwarrantedly delay the filing process. Such discrepancies may occur due to myriad reasons, including filing errors, incorrect or delayed reporting by the employer(s), or dealing with multiple deductions.

Mismatches can also occur when the Permanent Account Number (PAN) or Tax Deduction and Collection Account Number (TAN) details of the deductor in Form 16 or Form 26AS do not align with the information in the AIS. Furthermore, there may be cases where certain tax deducted at source (TDS) entries are missing from both Form 26AS and the AIS, which can result from the employer's failure to report the TDS details to the tax department or delays in updating the information.

Ensuring timely reconciliation of TDS details and providing accurate information in your ITR is essential for a seamless income tax filing process, reducing the probability of receiving notices or facing scrutiny from the Income Tax Department.

In case of discrepancies between the TDS and other information found in Form 16, Form 26AS, and the AIS, it is advisable to look at the following necessary steps:

Cross-check the details given: Thoroughly compare the TDS details, such as the deducted amount, employer’s name, TAN, and PAN, in all three documents. Pay attention to any variations or inconsistencies causing the mismatch.

Contact your employer: Notify the employer about the discrepancies and furnish them with the necessary information. Seek necessary information from them to enable the rectification of any errors or omissions made on their part.

Request for revised Form 16: In case of discrepancies caused by errors in Form 16, request the employer(s) to provide a revised Form 16 with the accurate TDS details. It is important to ensure that the revised form is appropriately signed and stamped by the employer(s).

Contact the tax officials: Get in touch with the income tax department and inform them about the discrepancies in Form 26AS and the AIS. Ask them about the necessary steps that must be taken to rectify the issue and ensure accurate reporting of TDS. The tax officials may seek additional information or evidence to support your claim.

File a complaint on the site: If the employer(s) or the income tax department does not respond or address your grievance, you may consider filing a complaint with the income tax department. This can be done through the department’s e-filing portal or by submitting a written complaint. However, you must submit all relevant details and supporting documents to strengthen your argument.

Most discrepancies occur at the base level, which is why verifying details of various forms and TDS is essential before filing the ITR within the stipulated period. Taxpayers must resort to certain steps to avoid mistakes and subsequent penalties while trying to file their ITRs in time.

Verify details in Form 26AS: Prior to filing your ITR, it is important to thoroughly examine your Form 26AS and ensure that all TDS deductions made by your employer(s) are accurately recorded. Verify if the TDS details, including the deducted amount, employer’s name, TAN, and PAN, align with your records and Form 16. If any discrepancies are identified, promptly reach out to the employer(s) and the tax department to rectify the issues.

Do not file ITR without filing TDS updates: Taxpayers must wait for a reasonable period after the financial year has ended while allowing all employer(s) enough time to report their TDS details to the tax department accurately. Waiting for the final updates reduces the likelihood of discrepancies between Form 16 and Form 26AS.

Check Form 16 thoroughly: Did you check the details in Form 16 that you received in your email? Are the details in the form correct and have they been properly signed by your employer(s)? Also, taxpayers must verify if the TDS information detailed in Form 16 corresponds to the details in Form 26AS. In case of any inconsistencies, taxpayers must notify their employers and request a revised Form 16 containing the correct information.

Reconcile your income with deductions: Apart from ensuring TDS reconciliation, it is crucial to verify your personal records for any additional income sources, deductions, and exemptions. It is important to accurately account for all sources of income and claim all eligible deductions and exemptions while filing your ITR form. This practice assists in reconciling your overall tax liability and reducing the likelihood of any discrepancies.

Ensure timely filing of your ITR: Did you confirm the TDS details shared in Form 26AS and Form 16? Post confirmation of the details and ensuring the accuracy of all other income and deduction-related matters, taxpayers must ensure the timely filing of their ITR forms as prescribed by the Income Tax Department. Filing your ITR on schedule helps prevent penalties and ensures compliance with tax regulations.

Promptly addressing any inconsistencies is crucial to ensure accurate reporting of your TDS and to avoid potential complications during income tax assessments or refund procedures. Although the income tax department has implemented measures to reduce mismatches between Form 16 and Form 26AS, it is essential to maintain thorough documentation and records in all circumstances.