If you are an employee drawing a salary, Form 16 is often your key form to file income tax return. Discrepancies between Form 16 and your aggregate tax credit statement, Form 26AS, can land you in trouble with the Income Tax Department. Discrepancies usually arise because employers delay depositing TDS or are sloppy while filing quarterly returns. These lapses can lead to notices or demands from the taxman on filing.
What to check first
Begin by comparing the main parts of Form 16 and Form 26AS cautiously. Make sure the PAN, employer, total taxable salary, and above all, the TDS amount are the same in both documents. If the TDS amount is not correct in Form 26AS, it could be that your employer has not deposited the tax yet or has filled in incorrect information in their return. Always check these documents before starting your ITR filing process.
How to fix the issue
If you discover a discrepancy, inform your employer or the payroll unit immediately to bring it to their attention. Ask them to file the corrected TDS return (Form 24Q) and corrected tax payment be reflected in the TRACES portal. The amendments will be reflected automatically in your Form 26AS once corrected. Do this correction well before the ITR filing deadline, as late submission can attract interest, penalties, or delayed refund.
File with caution
Do not submit your income tax return simply on the basis of your Form 16. It is essential to verify information with Form 26AS and even the Annual Information Statement (AIS), which has additional financial details reported to the tax department. Submitting on the basis of wrong or mismatched information can lead to notices of under-reporting income or excess claiming of TDS, even if the error was not yours. Submission of correct returns is your duty, not the employer's.
New technologies help
Thankfully, the Income Tax Department’s portal now offers pre-filled return features that draw data directly from your Form 26AS and AIS. This makes it easier for taxpayers to verify figures and spot inconsistencies early. Make it a practice to download and compare these documents before submission. In case of complex discrepancies or lack of clarity, consider consulting a chartered accountant to avoid accidental misreporting and ensure your filing stands scrutiny.
Be cautious
In 2025, with more data consolidation and tighter adherence checks, the Income Tax Department has developed better ability to detect mismatches and send out automated notices. Small differences that were not caught in the past are now caught digitally. That is why it is worth taking a little more time matching your Form 16 with AIS and Form 26AS. Forensic verification and timely correction are your best weapons for safe, worry-free tax filing.
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