Mismatch in Form 16, 26AS and AIS: My TDS details are not matching in Form 16, 26AS and AIS. What should I do at the time of filing an ITR?

The deadline for filing your Income Tax Return (ITR) is approaching, and it’s not a good idea to put it off until the last date because various challenges may arise. One such challenge is the mismatch between the Annual Information Statement (AIS), Form 26AS, and Form 16.

When filing your ITR, it is not uncommon to encounter mismatches in the Annual Information Statement (AIS), Form 26AS, and Form 16, which may cause a delay in the filing process. These discrepancies can arise due to various reasons, such as errors in filing, incorrect or delayed reporting by the deductor, or multiple deductors.

The mismatch can also occur when the PAN or TAN details of the deductor in Form 16 or Form 26AS do not match with the AIS. In some cases, certain TDS entries may be missing in both Form 26AS and the AIS, which can happen if the deductor has not reported the TDS details to the tax department or if there are delays in updating the information.

It is crucial for taxpayers to address these issues as soon as possible. Timely reconciliation of TDS details and accurate reporting in your ITR contribute to a smooth income tax filing process and minimize the chances of receiving notices or facing scrutiny from the tax department.

If discrepancies are found between the TDS and other details in Form 16, Form 26AS, and the AIS, follow these steps:

1. Cross-Verify the Information: Carefully compare the TDS details, such as the deducted amount, the deductor’s name, TAN, and PAN, in all three documents. Look for any variations or inconsistencies causing the mismatch.
2. Contact the Deductor: Inform the deductor about the discrepancies and provide them with the relevant details. Request them to rectify any errors or omissions on their part.
3. Request Revised Form 16: If the mismatch is due to errors in Form 16, ask the deductor to issue a revised Form 16 with the correct TDS details. Ensure the revised form is duly signed and stamped by the deductor.
4. Coordinate with the Tax Department: Contact the income tax department and inform them about the discrepancies in Form 26AS and AIS. Seek their guidance on necessary steps to rectify the issue and ensure accurate reporting of TDS. They may require additional documentation or evidence to support your claim.
5. File a Grievance: If the deductor or the tax department does not respond or take appropriate action to rectify the discrepancies, consider filing a grievance with the income tax department. This can be done through the e-filing portal or by submitting a written complaint. Provide all relevant details and supporting documents to strengthen your case.

Here are some recommendations for the timing of filing your ITR:

1. Verify Form 26AS: Before filing your ITR, carefully review your Form 26AS to ensure that all TDS deductions made by your deductors are accurately reflected. Check if the TDS details, such as the deducted amount, deductor’s name, TAN, and PAN, match with your records and Form 16. If any discrepancies are found, contact the deductor and the tax department to rectify the issues.
2. Wait for Final TDS Updates: It is advisable to wait for a reasonable period after the end of the financial year to allow all deductors to report the TDS details to the tax department. This provides them sufficient time to comply with their reporting obligations accurately. Waiting for the final updates minimizes the chances of mismatches between Form 16 and Form 26AS.
3. Validate Form 16: Ensure that you have received the correct and duly signed Form 16 from all your deductors. Verify that the TDS details mentioned in Form 16 match with the details in Form 26AS. If any discrepancies are identified, inform the deductor and request a revised Form 16 with accurate information.
4. Reconcile Other Income and Deductions: Besides TDS, reconcile other sources of income, deductions, and exemptions with your own records. Ensure that all income sources are correctly accounted for and all eligible deductions and exemptions are considered in your ITR. This helps reconcile the overall tax liability and avoids discrepancies.
5. Timely Filing: Once you have ensured that the TDS details in Form 26AS and Form 16 reconcile and all other aspects of your income and deductions are in order, proceed with filing your ITR within the specified due dates. Filing your ITR on time helps avoid penalties and compliance issues.

It is crucial to address the mismatch promptly to ensure accurate reporting of your TDS and avoid potential issues during income tax assessments or refunds. The income tax department has implemented measures to minimize mismatches between Form 16 and Form 26AS. However, maintaining proper documentation and records is essential in all cases.

For any clarifications/feedback on the topic, please contact the writer at ektha.surana@clear.in

Ektha Surana

Pursuing CA alongside my passion for content writing. Here, I ship some interesting content your way on topics- tax, personal finance and the likes .
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