rectification of tds mismatch in form 26a
Tax Deducted at Source (TDS) deduction amount should be the same in Form 26AS and Form 16/16A. However, there might be inconsistencies in the TDS amount for various reasons, including clerical mistakes. Form 16 and 16A are tax credit statements confirming tax deductions from the income of an individual or company. Form 16 is issued annually on TDS from salary, and Form 16A is issued every three months for TDS on income from other sources. Form 26AS is a government record of the TDS deducted from an individual or company and deposited with the Income Tax (IT) Department. What is a TDS statement? Everybody who makes tax deductible payments must file quarterly TDS returns as applicable. This statement contains information about people who have received payment after tax deduction, or in other words, deductees. It also contains the nature of payment made to him and the tax deducted from his payment. These are called TDS statements. Based on such statements filed, the deductors generate Form 16 (TDS on salary) and Form 16A (TDS on other income) annually and quarterly respectively. What is Form 26AS? Generally, every entity (individual or company) that has deducted taxes must credit that amount to the government via banks. Banks must upload these TDS details into the Tax Information Network (TIN) central system. The deductors, parallely, would file quarterly statements to TIN, providing quarterly TDS details. Based on these details, the TIN central system matches information related to tax payment before converting into a comprehensive ledger for the concerned PAN. This is Form 26AS. Basically, Form 26AS statement provides a consolidated view of the total income earned by you as a deductee from various sources. It also includes the TDS/ TCS amount that has been deducted from your income and credited to Income Tax Department. Apart from tax deductions, you may also pay taxes by way of Advance Tax and Self Assessment Tax. All such tax related information appears in Form 26AS. Tax Collected Source Form 26AS Form 26 AS will equip information considering the tax deducted at source (TDS), tax collected at source (TCS). This form indulges info on tax deducted on your income by deductors, details of the tax collected by collectors, advance tax paid by the taxpayer, self-assessment tax payments, regular assessment tax installed by the taxpayers (Permanent Account Number holders) details of the refund gained by you meanwhile the financial year, and details of the High- value Transactions in order of shares, mutual fund, etc. Mismatch between TDS statement and Form 26AS TDS, or Tax Deducted at Source, is required whether you are a salaried employee or a company owner. Your employer is obligated to deduct TDS from your salary and deposit it with the government depending on the projected tax for the year. Similarly, if you are a company owner, your customer is obligated to deduct TDS and deposit it with the government at the current rates. Individuals and organizations that deduct TDS must have a TAN number, and when they deposit the TDS with the government against your PAN, it appears on your Form 26AS automatically. Technically, your TDS statement on Form 16 or Form 16A should exactly match Form 26AS. However, there may be situations when there is a disparity that causes a concern while submitting your returns. Reasons for TDS mismatch The TDS drawer has not yet submitted a TDS return. Invalid value specified in TDS return. Incorrect PAN number of employee cited by deductor. PAN and incorrect TAN number specified. Invalid Challan Identification Number for TDS Payment quoted in TDS Return. Invalid audit year is specified in the TDS return. Any TDS payment details removed from the TDS update. Challan-wise annexure TDS Statement does not specify employee details such as name or gender. Error TDS value claimed in review. False or excessive TDS return claimed. How the rectification of the TDS mismatches in Form 16 and Form 26AS is done? If the discrepancy is due to your employer’s error, he or she must complete the updated TDS Return with the relevant details. In the event of a tax credit dispute informed by the IT department errors should be corrected online via the IT e-filing portal. The TDS (Source Taxes) should be properly similar to Form 26AS and Form 16 or 16A. However, sometimes there may be inconsistencies for several reasons, including clerical error. Forms 16 and 16A are tax credit statements that confirm tax deductions on an individual or company’s income. Although Form 16 is issued annually by TDS from salary, Form 16A is issued every 3 months to TDS with revenue from other sources. Form 26AS, on the other hand, is a government tax record that is levied on an individual or a company and submitted to the Tax Department. Once TDS or TCS (Tax Collected at Source) has been deducted from your income, the person in charge of deducting TDS or TCS must submit the amount collected to the IT Department. In some cases, if the employer did not submit the amount to the department on time, it is possible that the TDS specified in Form 16 or 16A will not comply with Form 26AS. To file your income tax return, the tax credit in Form 26AS and Form 16/16A must be the same. In calculating taxes, it is important to know the TDS already deducted from your salary so that any additional tax on other earnings is determined accordingly. If excess TDS is caught, you may also be liable for a return from the department. If there are differences in Form 26AS and Form 16/16A tax credit calculations, and you have not adjusted them in time, the taxpayer will consider the amount in Form 26AS in the figures. Rectification of TDS mismatch in Form 26AS Intimate the employer responsible for deducting TDS from your income. If the reason for the discrepancy is a mistake on the part of your employer, it is easier and faster for them to make corrections. The employer must complete the updated TDS Return. Make
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