ITR Filing 2024: Mismatch Between Form 16 And Form 26AS Could Trigger Tax Notice

ITR Filing 2024: Form 16 Details Not Matching with Form 26AS? Do this to avoid Income Tax Dept’s Notice.

The income tax return (ITR) filing deadline is on July 31. Most salaried taxpayers may have already received Form 16 from their employers by the third week of June. Those who haven’t received it yet can expect it by the end of this month, as reported by Financial Express.

If you have just received Form 16 from your employer, the first thing you should do is compare your Form 16 with Form 26AS.

What Do Form 26AS and Form 16 Contain?

Form 26AS provides details of all taxes paid by a taxpayer, including TDS deducted by employers, banks, or other deductors.

Form 16 details salary income, TDS deducted by the employer, and various allowances.

Form 26AS, a consolidated Annual Information Statement for a particular Financial Year (FY), includes the following details:
– Tax Deducted at Source (TDS)
– Tax Collected at Source (TCS)
– Advance Tax / Self-Assessment Tax / Regular Assessment Tax deposited
– Refund received during a financial year (if any)
– Details of any Specified Financial Transactions (SFT) (if any)
– Details of Tax Deducted on sale of immovable property u/s194IA (in case of the seller of such property)
– TDS Defaults (if any)
– Information relating to demand and refund
– Information relating to pending and completed proceedings

On the other hand, Form 16 is a confirmation that taxes have been deducted from an employee’s salary. It is a certificate showing that tax has not only been deducted but also deposited with the income tax department.

Steps to download Form 26AS

1. Visit the Income Tax Department’s E-Filing Portal.

2. Enter Your User ID (PAN) – If the user ID is invalid, an error message will appear. Ensure you enter valid user ID details.

3. Enter Your Password – If you remember your password, enter it and proceed. If not, follow the steps provided to recover your password.

4. Navigate to ‘E-File’.

5. Select ‘Income Tax Returns’ and then choose ‘View Form 26AS’ from the dropdown menu.

Steps to Take in Case of a Mismatch Between Form 16 and Form 26AS

As a taxpayer, it is crucial to address any discrepancies between Form 16 and Form 26AS to ensure accurate reporting of income and taxes paid. Failing to reconcile these mismatches may result in receiving a notice from the income tax department.

Ways you can rectify TDS mismatch

If there is a mismatch between Form 16 and Form 26AS, the first step is to inform your employer or the company that deducted TDS from your income.

If the employer is at fault, you need to notify them so they can correct the mistake.

After the employer files a revised TDS return to correct the error, ensure that the details are accurate to prevent another mismatch. If you receive a notice from the tax authorities about a tax credit mismatch, you can respond to it online through the income tax department’s e-filing portal.