New Delhi: Income tax department Tax Deducted at Source (TDS) credit will be denied and your will be flagged income tax return (ITR) if it detects any discrepancy between the TDS information reported in the ITR and the data provided by the TDS deductor. when a tds cutter After deducting tax, they are required to file TDS returns, which the tax department reconciles with the reported data.
“It may be noted that the taxpayer will not get tax credit tax cut which is not reflected in Form 26AS” said income tax department, which means if anyone has any tax dues after filing ITR, they will have to pay the tax debt and will not be able to offset the TDS credit that is not reflected in Form 26AS, according to The Economic Times. according to the report.
For example, if the deductor makes an error in reporting the data, such as the bank has deducted a certain amount as TDS on FD investments but fails to report it accurately in its TDS return, the income tax The department will not give permission. tds claim and may also issue a tax notice,
According to S Vasudevan, Executive Partner, Lakshmikumaran & Sreedharan (LKS), “Taxpayer information is currently entered in Form 26AS, AIS and TIS to facilitate data verification and ITR filing. (TDS) All cases of mismatch In, it is possible that the taxpayer is given a communication by the tax department, which highlights the importance of ensuring that the TDS data reported and deducted is accurate and consistent to avoid any issues with the Income Tax Department. .
Tax credit mismatch in TDS data, ITR vs Form 26AS
Discrepancies between TDS data in Income Tax Return (ITR) and Form 26AS can occur due to various reasons. On successful processing of ITR, the individual will receive an intimation order under section 143(1) furnishing the computation furnished in the ITR and accepted by the Income Tax Department. If the TDS credit claim is rejected, the calculation accepted by the tax department will change, resulting in higher tax liability.
Income Tax Department explains how to identify tax credit mismatch
- On the Tax Credit Mismatch page, enter your relevant details.
- Review the amount of TDS, TCS, or any other challan.
- Compare the respective amounts with the figures given in Form 26AS
- If there is a difference between the amount entered and the amount entered in Form 26AS, it indicates a tax credit mismatch.
- In case of a mismatch, a message stating “There is a mismatch” will be displayed.
- If there is no discrepancy, the message “Tax credit claimed exactly matches the tax credit available in Form 26AS” will appear.
The Income Tax Department said, “Taxpayers are requested to ensure that the TDS details mentioned in SH TDS1 and SH TDS2 of the ITR form are complete and are in accordance with the details shown in Form 26AS/TDS Certificate/Form 16 issued by the deductor. Please ensure that the TAN (Tax Deduction and Collection Account Number) of the deductor is entered accurately in the appropriate fields of the ITR form.”
Discrepancies in your Form 26AS may arise for various reasons, including:
- Non-filing of TDS return by the deductor
- Non-payment of TDS by the deductor
- Quotation of wrong Assessment Year (AY) or wrong PAN (or no PAN)
- Wrong challan details furnished in TDS return
- Wrong challan details quoted in TDS return by the deductor
- Challan details uploaded incorrectly by the bank
- Incomplete details of assessee in TDS return
- Mismatch between TDS quoted and actual TDS deducted
According to some experts, typographical errors in the PAN submitted by the taxpayer or entered by the deductor can lead to incorrect reflection of TDS, according to the Economic Times.
As Vishal Gehrana, Principal Associate, Karanjawala & Co. and Advocate on Record, Supreme Court, stated that “data entry errors, such as wrong amounts or wrong financial year entries, can lead to further mismatches. Additionally, technical staff at the department end “There could be mistakes.” Sometimes there are also discrepancies between the TDS reported by the deductor and the TDS displayed in AIS or Form 26AS.
How to fix TDS data mismatch issue
According to the Economic Times, Vasudevan said, “Where the discrepancy arises due to non-disclosure by the taxpayer, it is advisable for the taxpayer to submit a revised return or updated return to address the mismatch.” A filing Revised ITR Or ITR-U (Updated ITR) is an option if time limit permits.
If the Form 26AS data is corrected or updated with the exact TDS amount, one can claim its credit. Experts recommend addressing this issue directly with the concerned TDS deductor.
Vasudevan further said, “Where the mismatch arises due to non-deposit of tax or any other reason like wrong disclosure, it is advisable for such taxpayer to correct the mismatch to avoid prolonged litigation on the same.” Connect with the concerned counterparty to do so. If the mismatch is for other reasons, the taxpayer should respond appropriately.”
According to Sujit Bangar, Founder, TaxBuddy.com, “In terms of filing income tax returns (ITR), taxpayers are often unsure whether to wait for correction in TDS data or proceed based on their own records. Generally , it is advisable to file ITR with correct TDS data as per the taxpayer’s records, such as Form 16, Form 16A, or filing TDS based on accurate records ensures that any discrepancy is not later reported to the Income Tax Department. Can be clarified with, especially in cases where. TDS mismatch Importantly, taxpayers may consider waiting for the deductor to submit the revised return and ensure that both Form 26AS and AIS reflect the correct data. However, if a taxpayer is facing the filing deadline and the deductor has not yet made the necessary corrections, they can file the return with the TDS data available in Form 26AS or AIS. It is important to be prepared for a possible investigation or notice from the tax authorities if the mismatch persists.
The Income Tax Department outlines specific actions to correct Form 26AS details:
- Submit correction details (through NSDL website) only for those records which require correction.
- If an error is made by the deductor, you should contact them and request that:
If pending TDS return has not been filed then file the same.
If the return was filed with incorrect details, such as wrong PAN or other errors, submit a revised TDS return. - If the mistake is made by the bank (for example, in the tax amount or PAN), ask the bank to rectify the error in the challan details uploaded by them.”
