TDS Mismatch/Correction Filing

TDS Mismatch in Form16 and Form26AS, Rectification

 

The Tax Credit Mismatch service is available to all registered users (including ERIs) on the e-Filing portal. With this service, you can view the tax credit mismatch of your e-Filed Income Tax Returns immediately after you have uploaded the Income Tax Return for the relevant Assessment Year for any number of records.

 

This service highlights any mismatch in Tax Deducted at Source, Tax Collected at Source, Advance Tax or Regular assessment tax amounts reported by you while filing Income Tax Return. In case of a mismatch, you may rectify the errors at your end or get them corrected by Tax Deductors by making a correction in TDS Returns/Forms like 24Q, 26Q, 27Q, 27EQ (either by filing a Rectification Request or by filing a Revised Return).

 

 

If the mismatch is due to your employer's mistake, he/she has to file a revised TDS Return with correct details. In case of a tax credit mismatch notified by the IT department the errors should be corrected online through the IT e-filing portal.

 

TDS(Tax Deducted at Source) should ideally be the same in Form 26AS and FORM 16A. However, sometimes there might be inconsistencies owing to several reasons including clerical mistake.

 

Form 16 and 16A are tax credit statements that confirm the deduction of tax from income of an individual or company. While Form 16 is issued annually on TDS from salary, Form 16A is issued every 3 months for TDS on income from other sources. Form 26AS, on the other hand, is a government record of the tax deducted from an individual or company and deposited with the Income Tax Department.

Once TDS or TCS (Tax Collected at Source) is deducted from an income, the person who is in charge of deducting TDS or TCS should deposit the amount collected with the IT Department. Sometimes, if the employer has not deposited the amount with the department on time, it is likely that TDS mentioned in Form 16 or 16A will not match with form 26AS

To be able to file your income tax return is essential that tax credit in Form 26AS and Form 16/16A should be the same. For tax computation, it is important to know the TDS already deducted from your salary so that any additional tax on other incomes can be determined properly. If excess TDS has been deducted, then you may also be liable for a refund from the department.

If there is any difference in the tax credit figures of Form 26AS and Form 16/16A, and you have not rectified it in time, then the taxman will consider the figure in Form 26AS for calculations.

Rectifying TDS Mismatch

Once you compare the forms and identify the error, you must:

• Inform the person responsible for deducting TDS from your income, i.e. your employer.
• If the reason for mismatch is a mistake from your employer's side, it is easier and faster for them to make corrections.
• The employer has to file a revised TDS Return. Ensure that the details are correct in the revised TDS return in order to avoid another mismatch.
• If you have received a notice from the Income Tax department about tax credit mismatch, you can respond to it online through Income tax e-filing portal.
• You need to choose 'Taxpayer is correcting data for Tax Credit Mismatch only' under the options and fill in the relevant details.

Filing of revised TDS Return will take some time, and even after the revised version is filed, it will take more time for the correction to reflect in Form 26AS. The best way to ensure that there is no discrepancy in TDS is to check your Form 26AS periodically. If you file your income tax return online, Form 26AS can be accessed from your Income Tax e-filing account.