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How to Avoid Double-Claiming TDS in AIS and Manual Entry

  • Writer: Asharam Swain
    Asharam Swain
  • Sep 11
  • 9 min read

The Tax Deducted at Source (TDS) mechanism is a crucial part of the Indian tax system, designed to collect tax at the source of income generation. However, a common issue taxpayers face is double-claiming of TDS, which can result in discrepancies during the filing process and potentially lead to tax authorities issuing notices. Double-claiming occurs when a taxpayer claims TDS more than once for the same income, causing incorrect tax calculations. This issue typically arises due to mismatched TDS details, errors in reporting, or confusion over multiple forms, such as Form 16 and Form 26AS. Let us explore why double-claiming of TDS happens, how to avoid it, and the latest updates in TDS laws to help ensure accurate tax filing.

Table of Contents:

Why Double-Claiming of TDS Happens

Double-claiming of TDS often occurs due to a variety of reasons, most of which stem from confusion or oversight in the tax filing process. The common causes of double-claiming include:


  • Multiple Forms and Sources: Taxpayers may have income from multiple sources, each with separate TDS deductions. If they claim TDS for each of these sources without checking whether the deductions have already been accounted for in their Form 26AS, they risk claiming the same amount multiple times.

  • Mismatched TDS Details: TDS is reported in Form 26AS, which is a consolidated tax credit statement. However, if taxpayers mistakenly report TDS from their Form 16 or Form 16A without cross-checking it against Form 26AS, they might end up claiming the same TDS amount more than once.

  • Incorrect Data Entry: A common mistake is manually entering TDS details in the ITR forms, which can lead to errors. For example, taxpayers may inadvertently duplicate the amount of TDS if they enter the same value in both the TDS section and the other income section.

  • TDS on Refunds: If taxpayers receive refunds on TDS from earlier years or from a source that they have already accounted for, they might mistakenly add this amount to their current return, resulting in double-claiming.

  • Revised Returns: When filing a revised return, if the previous TDS claim was missed or adjusted incorrectly, taxpayers may accidentally add the same amount in the revised return, leading to a duplicate claim.


Step-by-Step: How to Avoid Double-Claiming TDS

Step-by-Step: How to Avoid Double-Claiming TDS

Avoiding double-claiming of Tax Deducted at Source (TDS) is essential for accurate tax filing and preventing unnecessary scrutiny from the Income Tax Department. Double-claiming TDS can result in discrepancies in your return, leading to delays in processing, potential penalties, or even a tax audit. Here's how you can avoid this issue and ensure that you claim TDS correctly.


1. Cross-Check Form 16 and Form 26AS

The first step in avoiding double-claiming TDS is verifying the details in both Form 16 (provided by your employer) and Form 26AS (a consolidated statement available on the Income Tax Department portal).


  • Form 16: This is a certificate issued by your employer that summarizes the TDS deducted from your salary and paid to the government. It shows the total TDS deducted on your salary and other applicable deductions.

  • Form 26AS: This is a consolidated tax statement that shows all TDS deducted against your PAN, including TDS from various sources such as salary, interest, or other payments. It also reflects TDS deducted by your employer, banks, or other entities.


Before claiming TDS in your Income Tax Return (ITR), always compare the TDS details in Form 16 with the corresponding details in Form 26AS. Ensure that the amount listed in Form 26AS matches the amount in Form 16. If there is any discrepancy or double entry, it can lead to incorrect claims.


2. Ensure Correct Data Entry

Accurate data entry is crucial when filing your ITR. Double-check the TDS amounts listed in both Form 16 and Form 26AS before claiming them in your tax return. It’s common to make the mistake of adding the same TDS amount twice by entering it once from Form 16 and again from Form 26AS.


The TDS section in your ITR form should clearly reflect the TDS amount deducted from each income source, and it is essential to ensure that you only claim the TDS once. Incorrect or duplicate entries can lead to mismatches with the Income Tax Department’s records, which could trigger unnecessary scrutiny or demand for clarification.


3. Avoid Manual Entry Mistakes

Manual entry errors are one of the leading causes of double-claiming TDS. To avoid this, rely on the auto-fill feature provided by many e-filing platforms, such asTaxBuddy, which can automatically import details from Form 26AS.


  • By using the auto-fill feature, the TDS details from Form 26AS are pre-filled in the ITR, ensuring that you don’t enter the same amount twice. The auto-fill function pulls the information directly from the Income Tax Department's database, reducing the chances of errors and minimizing the risk of double-claiming TDS.

  • It’s a good idea to cross-check the auto-filled data to ensure the amounts match your Form 16 and Form 26AS. If any discrepancies are found, they should be corrected before submitting your return.


4. Use the Correct Section in ITR

In your ITR, TDS needs to be claimed under the correct income section. It is important to ensure that TDS related to a specific income type is claimed under the appropriate head in the ITR form.


For example:


  • TDS related to salary income should be claimed under the Income from Salaries section.

  • TDS related to interest income should be claimed under the Income from Other Sources section.


Do not enter the same TDS amount under the "Other Income" section if it has already been accounted for in the relevant section. For instance, if TDS has been deducted on your salary, do not claim it again under the "Other Income" section, as it may lead to double-claiming. Always ensure that the TDS is matched with the correct income category to avoid errors.


5. Review Before Submitting

Once you've filled out your ITR and entered the TDS details, it's essential to review the entire TDS section carefully.


  • Check if the amount of TDS claimed in your ITR matches the deductions reflected in Form 26AS and Form 16.

  • Ensure that you haven’t entered any TDS amount twice or claimed TDS that is not reflected in Form 26AS.


Double-checking before submission can save you from making errors that may lead to unnecessary follow-ups with the Income Tax Department. Reviewing the TDS section with attention to detail ensures your return is accurate, reducing the chances of mismatches and the likelihood of scrutiny.


6. Consult a Tax Professional

If you are unsure about any discrepancies or if you have multiple sources of income with TDS claims, it’s a good idea to consult a tax professional. Tax professionals have in-depth knowledge of the tax filing process and can help you:


  • Ensure that you’re not making errors that could lead to double-claiming.

  • Clarify any discrepancies between Form 16, Form 26AS, and the amounts entered in your ITR.

  • Help you navigate complex TDS issues, especially if you have income from multiple sources like salary, interest, or other investments.


Consulting a tax professional can save time, prevent mistakes, and ensure that your return is filed accurately.


Latest Updates & TDS Law Highlights (as of April 2025)

The TDS laws in India undergo regular updates to address new challenges and improve tax collection efficiency. As of April 2025, here are some key changes and updates related to TDS:


  • E-Filing of TDS Returns: The government has made it mandatory for all businesses and professionals to file TDS returns electronically. This has streamlined the process and made it easier to track TDS credits in real-time.

  • Enhanced TDS Credit Matching: The Income Tax Department has improved the matching mechanism between Form 26AS and ITR filings. This ensures that TDS deductions are more accurately reflected in taxpayers’ records, reducing the chances of double-claiming.

  • TDS on Digital Assets: With the growth of the digital economy, TDS provisions have been extended to cover digital assets and cryptocurrency transactions. As per the new rules, TDS will be applicable on payments made for the transfer of digital assets and virtual currencies, which was not previously the case.

  • Relaxation for Senior Citizens: The government has introduced a relaxation for senior citizens, exempting them from TDS on interest income if their total income is below the taxable threshold. This update ensures that senior citizens are not unnecessarily burdened with TDS on small amounts of income.

  • Penalty for Non-Compliance: The penalty for failure to deduct TDS or for late deposit has been increased. It is essential for businesses and professionals to ensure timely compliance to avoid hefty fines.


Conclusion

Double-claiming of TDS is a common mistake that can lead to errors in tax filings and delay the refund process. It is important for taxpayers to thoroughly cross-check TDS details in Form 16 and Form 26AS before claiming them in their returns. By following the step-by-step process outlined above and staying up to date with the latest TDS laws, you can avoid these issues and ensure a smooth filing experience. Platforms like theTaxBuddy mobile app offer automated tools to help taxpayers prevent such errors, ensuring accurate, hassle-free filing. Consulting a tax professional can also be beneficial, especially if you have multiple sources of income or complex tax situations.


FAQs

Q1: How can I verify if TDS has been deducted correctly? To verify if TDS has been deducted correctly, you should check your Form 26AS, which contains a detailed record of all TDS deductions made against your PAN. This form reflects the TDS deducted by employers, banks, or any other entities. Cross-check the amounts shown in Form 26AS with the details provided in your Form 16 orForm 16A (for other income). This helps ensure that the deductions made by the deductor match the amounts that are reflected in the system.


Q2: What should I do if I have claimed TDS twice by mistake? If you realize that you’ve double-claimed TDS, you need to file a revised return as soon as possible to correct the mistake. When filing the revised return, ensure that the correct TDS amount is considered, and the double claim is rectified. This will help prevent any issues such as delays in refunds, penalties, or notices from the Income Tax Department.


Q3: Can I claim TDS on both salary and other income? Yes, you can claim TDS on both salary and other income, as long as the TDS amounts are reported accurately. Ensure that the TDS deductions on salary (reported in Form 16) and other income (reported in Form 16A or 26AS) are not duplicated. The total TDS claimed from all sources should match the TDS reflected in your Form 26AS to avoid discrepancies in your tax filing.


Q4: What is the penalty for double-claiming TDS? Double-claiming TDS can lead to penalties, delays in refunds, and potential scrutiny from the Income Tax Department. The department may flag the discrepancy, leading to an audit or further investigation. To avoid this, ensure that you accurately claim TDS once for each income source and cross-check the amounts reflected in Form 26AS and Form 16.


Q5: How do I avoid double-claiming TDS when I have multiple Form 16s? When you have multiple Form 16s, it's important to carefully cross-check the TDS reflected in each Form 16 against the corresponding entries in Form 26AS. Ensure that TDS is not claimed more than once for the same income. For example, if you have multiple employers, make sure TDS deducted by each is correctly reflected and claimed without duplication.


Q6: Does TaxBuddy help with TDS claim verification? Yes, TaxBuddy offers an automated system to help verify TDS claims. By importing details from your Form 26AS, TaxBuddy ensures that the TDS amounts reflected in your return are accurate. This minimizes the chances of errors, such as double-claiming TDS, making the filing process more accurate and efficient.


Q7: Can I file my return with TDS mismatches? It is recommended to resolve any TDS mismatches before filing your return to avoid complications. If there are discrepancies between the TDS reflected in Form 26AS and the amount reported in your return, your refund may be delayed or rejected. It’s better to ensure that TDS credits match before filing to prevent any processing delays or future issues.


Q8: What happens if I claim TDS that is not reflected in Form 26AS? Claiming TDS that is not reflected in Form 26AS can lead to discrepancies, and the Income Tax Department may reject your TDS claim or delay your refund. It’s important to cross-check that the TDS you are claiming is accurately reflected in Form 26AS before including it in your return. Filing incorrect TDS information may also lead to penalties or interest on the unpaid tax.


Q9: Is it necessary to submit proof of TDS? While you do not need to submit the physical TDS certificates (Form 16 or Form 16A) with your tax return, it is crucial to keep them in hand as they may be requested by the Income Tax Department in case of a query or audit. The department may ask for supporting documents to verify the TDS claims, so retaining proof is necessary for future reference.


Q10: Can I claim TDS on interest income from savings accounts? Yes, TDS is deducted on interest income from savings accounts if it exceeds ₹40,000 in a financial year for individuals below 60 years of age, and ₹50,000 for senior citizens. The TDS will be reflected in Form 26AS, and you can claim this credit while filing your ITR. Ensure that the TDS amount is accurately reported in both Form 26AS and your return to avoid any issues.


Q11: How do I file a revised return for TDS-related issues? If you discover a TDS-related error after filing your return, you can file a revised return through the Income Tax Department’s e-filing portal. To do so, log in to your account, select the option for “Revised Return,” and ensure the correct TDS details are updated in the revised return. The revised return should reflect the accurate TDS credits, which will be verified against Form 26AS.


Q12: Does the TaxBuddy platform help prevent double-claiming errors? Yes, TaxBuddy helps reduce the risk of double-claiming TDS by verifying the TDS credits reflected in Form 26AS before you file your return. The platform automatically checks that the TDS amounts are accurate, preventing errors that could lead to penalties or delays in refund processing. TaxBuddy ensures that the TDS amounts are correctly claimed based on your financial records, helping to avoid common mistakes during the filing process.


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