Rectification of Mismatched TDS Liability

• CA Chandan Agarwal's Office

Ideally, the value of Tax Deducted at Source (TDS) should be the same in Form 26AS and Form 16 or 16A. However, sometimes some clerical mistakes, some wrong entries, and some omissions cause inconsistencies between the data. To understand it more precisely and deeply, let us first understand what are these forms all about.

• Form 16 and 16A are tax credit statements that reflect the deduction of tax from the income of an individual or company.
• Form 16 is filed annually for TDS on income from salary and Form 16A is filed every 3 months for TDS on income from other sources.
• Form 26AS is a government attestation that the tax deducted by the deductor is duly deposited with the Income Tax Department.

TDS or TCS (Tax Collected at Source) is deducted from an income and the deductor of TDS or TCS is liable to deposit the amount deducted with the I-T Department. When the employer fails to deposit the deducted amount with the department on time, it sprouts the mismatch of TDS in Form 16 or 16A and Form 26AS.

Read more on: https://taxguru.in/income-tax/rectification-mismatched-tds-liability.html

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