Every year, millions of taxpayers in India file their Income Tax Returns (ITR). While the filing process has become easier with online systems, one common issue continues to create confusion: mismatches in Form 26AS.
Form 26AS is a consolidated statement that shows all taxes paid on your behalf, including TDS (Tax Deducted at Source), TCS (Tax Collected at Source), advance tax, self-assessment tax, and refunds issued. Since this document directly impacts how much tax is credited to your PAN, it must always match the details in your ITR.
When the numbers do not match, taxpayers may face unwanted consequences like delayed refunds, additional tax notices, or even penalties. This guide explains in detail why mismatches happen, how to fix them, and what preventive steps you can take to avoid them in the future.
What is Form 26AS and Why is it Important?
Form 26AS is often called a “tax passbook” because it records all tax-related transactions against your PAN. It includes:
- TDS (Tax Deducted at Source): Tax deducted by your employer, banks, or other parties
- TCS (Tax Collected at Source): Tax collected by sellers of certain goods or services
- Advance Tax or Self-Assessment Tax: Payments you make directly to the government
- Refunds: Any tax refunds credited to your account
- High-Value Transactions: Certain transactions like property purchases or mutual fund investments
Since the Income Tax Department cross-verifies your ITR with Form 26AS, any mismatch raises a red flag. It’s important to reconcile this form with your income details before filing returns.
Why Do Mismatches Happen in Form 26AS?
A mismatch in Form 26AS can occur for several reasons. Most are clerical errors or delays in reporting. Some common causes are:
- Incorrect PAN details: If the deductor (employer, bank, or other payer) enters the wrong PAN, the TDS will not appear in your statement.
- Mismatch in reported income: Sometimes, salary or interest income reported in Form 16/16A does not align with what appears in 26AS.
- Late filing of TDS statements: Employers or banks may file TDS returns late, causing temporary mismatches.
- Multiple income sources: If you changed jobs or earned income from different banks, all deductors must file correct TDS details. If even one fails, discrepancies arise.
- Technical delays: Updates from TRACES or CPC may take a few days, especially during peak filing season.
How to Identify a Mismatch
Before filing ITR, you should always download Form 26AS from the income tax portal. Compare it carefully with:
- Form 16 (if you are salaried)
- Form 16A (for TDS on interest or other income)
- Bank statements showing TDS
- Challans for advance or self-assessment tax payments
If the numbers don’t match, you’ve spotted a mismatch. Identifying the issue early makes it easier to correct before filing.
How to Fix a Form 26AS Mismatch
Fixing errors in Form 26AS is a step-by-step process. The approach depends on whether the mistake is from your side or the deductor’s side.
Step 1: Cross-Verify Documents
Download Form 26AS and compare it with your income proofs—salary slips, Form 16/16A, bank statements, and challans. Make a note of where the mismatch occurs.
Step 2: Contact the Deductor
If the issue is caused by incorrect PAN entry, wrong amount reporting, or delay in filing, you need to contact the deductor (employer, bank, or payer). Ask them to file a revised TDS return. Once filed, the correction usually appears in Form 26AS within 7–15 days.
Step 3: Correct Your Filing
If the error is from your side (for example, you entered the wrong figures in ITR), you must file a revised return with the correct details. This helps avoid penalties and ensures smooth refund processing.
Step 4: Keep Supporting Proof
Always keep documents such as Form 16, bank statements, or challan receipts. These are essential if the Income Tax Department sends a notice asking for clarification.
What If the Deductor Does Not Correct the Error?
Sometimes, despite reminders, deductors may fail to revise their TDS return. In such cases:
- Pay the shortfall in tax (if any) directly to avoid penalty
- Raise a grievance through the e-Nivaran portal on the Income Tax website
- Attach supporting documents (Form 16, challans, or bank statements) when responding to department queries
Even if the deductor does not correct the error, the Income Tax Department can consider your proof during assessment.
Preventing Future Mismatches
Prevention is always better than correction. Taxpayers can reduce the chances of mismatches by following these practices:
- Verify PAN details with employers, banks, and financial institutions
- Check Form 26AS quarterly instead of waiting until ITR filing
- Compare Form 16/16A with 26AS before submitting ITR
- Review the Annual Information Statement (AIS) for other income sources such as dividends, mutual fund transactions, or interest
These steps not only save time but also help in faster refund processing.
Form 26AS vs AIS: Why You Need to Check Both
In addition to Form 26AS, the Income Tax Department now provides an Annual Information Statement (AIS).
- Form 26AS focuses mainly on TDS, TCS, advance tax, self-assessment tax, and refunds
- AIS gives a wider picture, showing savings account interest, dividend income, securities transactions, property purchases, and more
When filing ITR, always cross-check both documents. The government uses both to verify your income, so overlooking AIS can also cause discrepancies.
Real-Life Examples of Form 26AS Mismatches
Example 1: Job Change During the Year
Ravi worked with two employers in one financial year. His first employer filed TDS details correctly, but the second employer delayed filing. As a result, his Form 26AS showed only partial TDS, creating a mismatch. Ravi had to follow up with the second employer to update records.
Example 2: Bank Interest TDS Not Reported
Anita’s bank deducted TDS on her fixed deposit interest but forgot to report it against her PAN. Her Form 26AS did not show the deduction. She contacted the bank, which later filed a corrected TDS return.
Example 3: Incorrect PAN Quoted
Manish’s PAN had a typo in the records submitted by his employer. Although TDS was deducted, it was not credited to his account in 26AS. The employer corrected the PAN in the revised TDS return, and the issue was resolved.
These real-life cases highlight why checking Form 26AS early is critical.
Checklist Before Filing ITR
Here’s a simple checklist every taxpayer should follow:
- Download the latest Form 26AS from TRACES
- Match details with Form 16, 16A, and bank records
- Verify your PAN is correctly updated with all deductors
- Check AIS for income not covered in 26AS
- Resolve mismatches before hitting submit
Key Takeaways
Always cross-check your Form 26AS before filing ITR
Correct mismatches quickly by contacting the deductor or filing a revised return
Keep all supporting documents for verification
Regular monitoring of Form 26AS and AIS prevents future errors
Frequently Asked Questions
It may result in tax notices, demand for additional tax, or delayed refunds.
Usually, 7–15 working days after the deductor files a revised TDS return.
Yes, but you must have proof such as Form 16 or Form 16A. The tax department may ask for verification.
Yes. AIS provides a complete financial view, and ignoring it may lead to mismatches.
Yes. Refunds are often held until the mismatch is corrected.
