How to Claim Missed TDS Credit Through Revised or Updated ITR
- Nimisha Panda
- Dec 1, 2025
- 8 min read
Many taxpayers discover after filing their Income Tax Return (ITR) that some TDS (Tax Deducted at Source) credits are missing in their Form 26AS or AIS. The Income Tax Department now allows these missed credits to be claimed through revised or updated returns under Sections 139(5) and 139(8A). With extended timelines, improved refund processing, and updated CBDT guidelines, claiming missed TDS has become faster and more transparent.
Table of Contents
Understanding Missed TDS Credit
Tax Deducted at Source (TDS) is collected on various income sources such as salary, interest, rent, or professional fees. However, sometimes taxpayers notice that the TDS reflected in Form 26AS, AIS, or TIS is less than the actual TDS deducted by the payer. This mismatch can occur due to incorrect PAN entry, delay in filing TDS returns by the deductor, or failure to report the payment properly. Missing TDS credits can lead to lower refunds or even tax demands during processing, making it essential to understand how to identify and claim the missing credit before filing or revising the return.
How to Claim Missed TDS Credit
To claim missed TDS credit, verify your Form 26AS and AIS against the TDS certificate (Form 16 or 16A) provided by the deductor. If the TDS is missing in the statement, request the deductor to revise their TDS return to include your PAN correctly. Once the correction reflects in Form 26AS, you can file a revised return under Section 139(5) to claim the missed credit. For older or unclaimed years, the taxpayer may also file an updated return under Section 139(8A) if eligible. It’s crucial to wait for the correction to reflect in the system before claiming, as unmatched claims may get rejected during processing.
Filing a Revised Return Under Section 139(5)
A revised return allows taxpayers to correct omissions or mistakes in an already filed ITR. If the original return did not include TDS credit due to a mismatch or omission, the taxpayer can file a revised return once the TDS reflects correctly in Form 26AS or AIS. The revised return must be filed before the end of the relevant assessment year or before the completion of assessment, whichever is earlier. This method helps ensure that the TDS claim aligns with the records available in the Income Tax Department’s system.
Filing an Updated Return (ITR-U) Under Section 139(8A)
If the deadline to file or revise the return has passed, taxpayers can use ITR-U under Section 139(8A) to claim missed TDS credit. The updated return can be filed within 24 months from the end of the relevant assessment year, subject to certain conditions. However, unlike a revised return, an updated return requires the taxpayer to pay additional tax, which can range from 25% to 50% of the tax due, depending on when it is filed. This option is suitable when missed TDS credits relate to previous financial years and no other route is available.
Difference Between Revised Return and Updated Return
A revised return is used to correct genuine mistakes within the permissible time limit of the same assessment year, while an updated return is meant for post-deadline corrections extending up to two years. Revised returns usually do not attract additional tax, whereas updated returns require payment of an additional tax liability. The updated return option is broader in scope and is useful when taxpayers want to rectify earlier filings where TDS credits were missed or understated.
Step-by-Step Process to Claim Missed TDS Credit
Check Form 26AS, AIS, and TIS on the income tax portal.
Compare TDS reflected with TDS certificates (Form 16/16A).
If missing, ask the deductor to file a revised TDS return (Form 24Q or 26Q).
Wait until the correction reflects in your Form 26AS.
File a revised ITR under Section 139(5) or an updated ITR under Section 139(8A).
Mention the correct TDS amount and validate it using the data in AIS.
Re-verify and submit your return for processing.
Platforms like TaxBuddy simplify this process by automatically matching AIS, TIS, and 26AS entries with your ITR to detect missed credits and guide you through the appropriate correction method.
What If the Deductor Has Not Corrected the TDS Entry?
If the deductor fails to update or correct the TDS entry, the taxpayer cannot claim credit for the same, as the Income Tax Department allows TDS claims only if they appear in Form 26AS or AIS. The best approach is to formally communicate with the deductor or raise a grievance through the TRACES portal. In rare cases, you may submit supporting documents, including the TDS certificate and communication proof, to the jurisdictional assessing officer for manual correction. However, this process can be time-consuming.
Claiming Missed TDS Credit for Previous Financial Years
For earlier years where the claim was missed, taxpayers can now use the ITR-U mechanism to file updated returns within 24 months. This helps correct past mismatches or missed entries and allows taxpayers to claim due refunds. However, if the time limit for the relevant year has expired or if the deductor has not uploaded the TDS, the claim cannot be processed. Therefore, early verification of Form 26AS each financial year is strongly recommended.
Common Errors While Claiming Missed TDS Credit
Common mistakes include claiming TDS without verifying AIS data, using incorrect assessment years, or filing before deductor updates TDS details. Many taxpayers also confuse gross income with taxable income while reporting interest or rent, leading to mismatched records. Another frequent error is claiming TDS reflected in someone else’s PAN due to data entry mistakes. Filing through platforms like TaxBuddy reduces these risks by automatically cross-verifying your details with government records.
Latest Updates and CBDT Guidelines (2025)
The CBDT has streamlined TDS reconciliation by integrating Form 26AS, AIS, and TIS into a unified reporting system. The 2025 updates emphasize real-time TDS validation before filing ITRs and automatic reconciliation during processing. Taxpayers are advised to review the pre-filled data carefully and confirm accuracy. The Income Tax Department has also launched faster grievance redressal for TDS mismatches through the e-filing portal, improving refund timelines for genuine claims.
Role of TaxBuddy in Claiming Missed TDS Credit
TaxBuddy provides an intelligent matching system that compares your Form 26AS, AIS, and TIS data with the ITR details. It highlights discrepancies and offers actionable suggestions on whether to revise or update your return. For complex cases, expert-assisted filing ensures every eligible TDS credit is correctly claimed. The platform’s automation and expert review minimize manual effort and eliminate the risk of rejection due to mismatched data.
Best Practices to Avoid Missing TDS Credit
Regularly monitor Form 26AS and AIS, especially before filing your return.
Ensure all deductors have your correct PAN details.
Collect Form 16 or 16A from all employers, banks, and clients.
File returns only after verifying all TDS credits.
Use professional filing tools like TaxBuddy that automate credit reconciliation.
Following these practices ensures that no TDS is left unclaimed and that refunds are processed smoothly.
Conclusion
Missed TDS credits can delay refunds or even lead to unnecessary tax demands. By understanding how to identify and rectify such cases through revised or updated returns, taxpayers can secure their rightful credits. Staying vigilant with AIS and Form 26AS checks is key to avoiding mismatches. For quick, accurate, and compliant filing, platforms like the TaxBuddy mobile app make the process effortless through AI-driven reconciliation and expert support.
FAQs
Q1. How can I check if my TDS credit is missing? To verify missing TDS credit, compare the TDS details reflected in your Form 26AS or Annual Information Statement (AIS) with the certificates received from your deductors—such as Form 16 (for salary) or Form 16A (for other income like interest or professional fees). If the tax deducted shown in your certificates does not match what appears in Form 26AS or AIS, it indicates that the deductor may not have deposited or reported the TDS correctly to the Income Tax Department.
Q2. Can I claim TDS not appearing in Form 26AS? No, the Income Tax Department allows TDS credit only for amounts visible in your Form 26AS or AIS. If the deducted tax is not reflected there, the system will not grant credit while processing your ITR. In such cases, you must request your deductor—employer, bank, or client—to file or revise their TDS return correctly. Once updated, the entry will reflect in your records within a few days.
Q3. How long does it take for corrected TDS to reflect in Form 26AS? After your deductor files a corrected TDS return, it usually takes 7–15 days for the updated information to appear in Form 26AS and AIS. However, processing times can vary depending on the TRACES portal’s update cycle. It’s advisable to recheck your Form 26AS after a couple of weeks to confirm the correction.
Q4. What if my employer refuses to correct the TDS return? If your employer or deductor refuses to rectify a TDS error, you can raise a complaint through the TRACES portal under “Taxpayer Communication.” Alternatively, you can log in to the Income Tax e-filing portal and file a grievance under “e-Nivaran.” Attach supporting documents such as your salary slips, Form 16, or bank statements showing TDS deduction. The department may follow up with the deductor for correction.
Q5. Can I claim missed TDS credit for older years? Yes, missed TDS credit for previous years can still be claimed through an updated return (ITR-U) under Section 139(8A). This must be filed within 24 months from the end of the relevant assessment year. For example, if your missed TDS pertains to FY 2022–23 (AY 2023–24), you can file an updated return until March 31, 2026.
Q6. Do I have to pay extra tax while filing an updated return? Yes, updated returns attract an additional tax. If you file within 12 months from the end of the relevant assessment year, an additional tax of 25% on the payable tax and interest is applicable. If you file between 12 and 24 months, the rate increases to 50%. This penalty ensures that taxpayers report income and claims accurately within time.
Q7. Can missed TDS be adjusted in next year’s return? No, TDS credits cannot be carried forward or adjusted in a subsequent financial year. Each year’s TDS is linked to income earned and tax deducted during that same period. If the credit is missed, it must be corrected within the relevant assessment year by revising or updating the return.
Q8. How do I ensure accurate TDS reporting next year? To avoid discrepancies, always verify Form 26AS, AIS, and Taxpayer Information Summary (TIS) before filing your ITR. Make sure your deductors—like employers, banks, or clients—have deposited the deducted TDS against your correct PAN. Keeping regular communication with them and reviewing statements quarterly helps in maintaining accuracy.
Q9. What happens if I claim wrong TDS credits? Claiming incorrect or unverified TDS credits can lead to refund delays, rejection, or even a demand notice from the Income Tax Department. In some cases, your refund may be withheld until the mismatch is resolved. Therefore, it’s crucial to ensure all TDS entries appear in your Form 26AS or AIS before submitting your return.
Q10. Does TaxBuddy automatically detect missed TDS credits? Yes, TaxBuddy’s intelligent filing system cross-verifies your Form 26AS, AIS, and ITR entries automatically. It highlights any mismatched or missing TDS entries and assists you in claiming accurate credits. This feature prevents refund rejections and ensures every eligible credit is correctly applied during filing.
Q11. Is there any deadline for claiming missed TDS through revision? Yes, a revised return under Section 139(5) must be filed before the end of the relevant assessment year or before the assessment is completed, whichever comes earlier. For instance, for FY 2024–25 (AY 2025–26), the last date to file a revised return would be March 31, 2026. After that, you’ll need to file an updated return (ITR-U).
Q12. Can non-salaried individuals also claim missed TDS credit? Absolutely. Any taxpayer—whether salaried, freelancer, professional, or self-employed—can claim TDS credit if tax was deducted in their name and the entry appears in Form 26AS or AIS. For example, TDS on professional fees, rent, or interest income can all be claimed. Platforms like TaxBuddy help such individuals reconcile income statements and ensure correct credit claims before submission.
