How to Handle Mismatch Between Form 16 and Form 26AS
- Nimisha Panda
- Dec 5, 2025
- 8 min read
Handling discrepancies between Form 16 and Form 26AS is one of the most common issues faced by taxpayers during income tax filing. These mismatches can lead to inaccurate tax credit claims, refund delays, or even notices from the Income Tax Department. Understanding why these differences occur and how to correct them ensures smoother filing and prevents compliance hassles.
When Form 16 and Form 26AS don’t match, the issue usually arises due to incorrect TDS reporting or delayed filings by employers. The key is to identify where the mismatch lies and take corrective action before submitting the return.
Table of Contents
Understanding the Mismatch Between Form 16 and Form 26AS
Form 16 and Form 26AS are essential documents for income tax filing. Form 16 is issued by your employer and details your salary income, tax deductions, and TDS deposited on your behalf. Form 26AS, on the other hand, is a consolidated statement maintained by the Income Tax Department that reflects all taxes deposited against your PAN, including TDS, TCS, and advance tax. A mismatch between these two forms often arises when the TDS reported by your employer or deductor does not match the actual entries in the government’s records. Such discrepancies can affect your tax calculation and refund processing, making it crucial to identify and correct them before filing your ITR.
Common Reasons for Mismatch in Form 16 and Form 26AS
A mismatch between Form 16 and Form 26AS can cause confusion and potential complications during income tax filing. This difference usually indicates that the TDS deducted from your income has not been properly credited to your account in the government records. One of the most frequent causes of such mismatches is the incorrect entry of your Permanent Account Number (PAN) by the employer or deductor. If the PAN mentioned in the TDS return does not match the one linked to your income tax account, the deducted tax will not reflect in Form 26AS, even if it was actually deducted from your salary.
Another common cause is a delay in depositing the TDS by the employer. Sometimes, companies deduct tax from employees’ salaries but fail to deposit it with the government within the stipulated time. This results in a temporary or permanent mismatch until the deposit is made and reflected in the records. Similarly, errors in the quarterly TDS returns (Form 24Q) filed by employers can lead to incorrect reporting of the deducted amount. Even a small error in the employer’s TAN, PAN, or challan details can cause discrepancies.
When an employee changes jobs during the financial year, multiple employers may deduct TDS. If one of them delays or fails to report the TDS correctly, the total tax credited in Form 26AS will not match the cumulative figures in the Form 16s issued by both employers. Duplicate reporting or revisions in TDS returns can also alter the entries, causing further confusion.
Sometimes, the mismatch occurs due to delays in updating data on the TRACES portal, which manages TDS-related information. This is especially common towards the end of the financial year or during return filing season, when data processing takes longer than usual. Additionally, if there are salary revisions, bonus payments, or arrears adjusted late in the year, the timing of TDS deductions and deposits may differ from what appears in the records.
To resolve these mismatches, taxpayers should always verify the details in both forms before filing the return. Cross-checking the employer’s TAN, challan details, and deposited TDS amounts ensures that all information aligns correctly. If any error is identified, it should be reported to the employer immediately so that a correction statement can be filed with the Income Tax Department. Regularly reviewing your Form 26AS on the income tax portal throughout the year can help detect and correct such discrepancies early, preventing delays in refund processing or potential scrutiny later.
Steps to Rectify Mismatch Between Form 16 and Form 26AS
If you identify a mismatch, the first step is to verify both documents carefully. Check your PAN, TAN of the employer, and the TDS amount in both forms. In case of a discrepancy, immediately contact your employer or deductor and request them to revise their TDS return. Once the correction is filed and processed by TRACES, the updated figures will reflect in Form 26AS. If the mismatch persists due to incorrect entries on your part while filing ITR, revise your return using accurate details. Platforms like TaxBuddy can help cross-verify TDS data and identify errors before submission, ensuring a smooth filing process.
Consequences of Ignoring a Mismatch in Form 16 and Form 26AS
Ignoring mismatches between Form 16 and Form 26AS can lead to serious consequences. The Income Tax Department may consider the difference as unpaid tax and issue a notice under Section 143(1) orSection 139(9). You might lose out on legitimate refunds, or your return could be flagged for scrutiny. Continuous mismatches can also impact your credit of TDS in future assessments. Rectifying discrepancies before filing ensures that your tax liability and refund are computed correctly and that your ITR is processed without delays.
Recent Updates from CBDT and AIS Integration
The Central Board of Direct Taxes (CBDT) has integrated the Annual Information Statement (AIS) and Form 26AS to provide a unified tax data view. This integration ensures that all TDS, TCS, and high-value financial transactions are recorded in one place. The AIS now captures income from multiple sources—salary, interest, dividends, capital gains, and more. With these updates, mismatches are easier to identify early, and taxpayers can cross-check their employer’s or deductor’s data in real-time. The move also enhances transparency and helps avoid errors in TDS reporting.
How Platforms Like TaxBuddy Simplify TDS Mismatch Resolution
TaxBuddy simplifies TDS mismatch resolution through automated reconciliation tools. Once you upload Form 16 and link your account, the system automatically compares it with data from Form 26AS and AIS. It highlights inconsistencies and suggests corrective actions, such as requesting a revised TDS return from the employer or updating entries before filing. For complex cases, TaxBuddy’s expert-assisted plan ensures that a professional reviews your documents and guides you through compliance steps. This approach reduces the risk of notices and ensures your ITR is filed accurately.
Conclusion
A mismatch between Form 16 and Form 26AS can lead to unnecessary complications during tax filing and refund processing. By proactively checking both forms, verifying employer details, and using reliable platforms like TaxBuddy, taxpayers can avoid these issues entirely. TaxBuddy’s automated comparison tools and expert support make it easier to identify discrepancies, ensure proper TDS credit, and file error-free returns.
For anyone looking for assistance in tax filing, it is highly recommended to download the TaxBuddy mobile app for a simplified, secure, and hassle-free experience.
FAQs
Q1. What causes a mismatch between Form 16 and Form 26AS? A mismatch between Form 16 and Form 26AS often happens due to errors in PAN entry, incorrect TDS details, or delays in depositing the tax by the employer or deductor. It can also occur if the employer files an incorrect quarterly TDS statement or uses the wrong TAN while submitting details to the Income Tax Department. Even small discrepancies in salary figures, allowances, or tax calculation can lead to inconsistencies between the two forms.
Q2. How can I check if my Form 16 and Form 26AS match? To verify, download Form 16 from your employer and Form 26AS from the TRACES or Income Tax portal. Compare the employer’s TAN, total income, and TDS amount reported in both. The figures for “Tax Deducted” in Form 16 should exactly match the entries under “Part A – Details of Tax Deducted at Source” in Form 26AS. Any difference in these values indicates a mismatch that should be corrected before filing your income tax return.
Q3. What should I do if there is a mismatch in TDS details? If you identify an error, immediately inform your employer or deductor about the discrepancy and request them to revise their TDS return. The employer will need to file a corrected TDS statement with accurate PAN and deduction details. Once the revised return is processed, the updated information will automatically appear in your Form 26AS, ensuring your ITR matches official tax records.
Q4. Can I file my ITR if the mismatch is not corrected? While it is technically possible to file your ITR with mismatched data, it is not recommended. The Income Tax Department’s system cross-verifies your filing with Form 26AS and AIS. If differences exist, your return may be flagged for review, delaying your refund or triggering an intimation under Section 143(1). Always wait until the correction reflects in Form 26AS before proceeding with your return.
Q5. How long does it take for corrections in Form 26AS to reflect? After the employer or deductor submits a revised TDS return, it usually takes 15 to 30 days for the corrected details to appear in Form 26AS. However, the update timeline may vary depending on the processing time at the TRACES portal. Taxpayers can log in to the Income Tax portal to check the updated status periodically and confirm the changes before filing their ITR.
Q6. Can I get a refund if my employer has not deposited TDS? No, you can only claim TDS credit if it appears in your Form 26AS. If the employer deducts tax but fails to deposit it with the government, the Income Tax Department does not recognize the deduction. In such cases, you should contact your employer immediately and request rectification. Legally, the employer is responsible for paying the deducted tax to the government, and you can take legal or departmental action if the issue persists.
Q7. How does the AIS help in identifying mismatches? The Annual Information Statement (AIS) provides a comprehensive view of all your financial transactions—income, TDS, TCS, and other reported details—collected from multiple sources. By comparing AIS data with Form 16 and Form 26AS, you can easily identify discrepancies such as missing TDS entries, underreported interest income, or duplicate records. This ensures your ITR reflects all accurate and consistent information.
Q8. Is Form 26AS still relevant after AIS introduction? Yes, Form 26AS continues to serve as a vital reference document. While AIS gives a detailed summary of all income sources and transactions, Form 26AS specifically shows TDS, TCS, and advance tax paid. Both need to be reviewed together for complete accuracy. Form 26AS acts as an official proof of tax credit, and AIS helps cross-verify the completeness of the data before you file your return.
Q9. What if multiple employers show up in Form 26AS? If you switched jobs during the financial year, Form 26AS will display entries from all employers who deducted TDS under your PAN. This is normal. However, you must ensure that the combined salary and total TDS match your Form 16s from each employer. When filing, report total income from all employers to avoid underreporting or mismatches. Double-check that each employer’s TAN and TDS amount are correctly reflected in the statement.
Q10. Does a mismatch affect my income tax refund? Yes, mismatches between Form 16 and Form 26AS can delay or reduce your refund. The Income Tax Department processes refunds based on verified data in Form 26AS. If the TDS claimed in your return doesn’t match the records in Form 26AS, the system may disallow the excess claim, lowering your refund. Correcting the mismatch ensures faster refund approval and prevents unnecessary notices or reassessments.
Q11. Can TaxBuddy help with TDS reconciliation? Yes, TaxBuddy simplifies the reconciliation process. Its automated platform compares your Form 16, Form 26AS, and AIS to detect discrepancies instantly. If mismatches are found, TaxBuddy’s expert team guides you on corrective steps—such as requesting revised TDS filings or adjusting entries in your return—to ensure your ITR matches official records. This reduces the risk of delays, notices, or refund denials.
Q12. What happens if I ignore the mismatch altogether? Ignoring mismatches can lead to several consequences. The Income Tax Department may issue an intimation notice disallowing your TDS claims, demand additional tax payment, or impose penalties for inaccurate filing. In serious cases, it may even flag your return for detailed scrutiny. To avoid these issues, always verify your Form 16, Form 26AS, and AIS before filing. Platforms like TaxBuddy help ensure your data is accurate and fully compliant, giving you peace of mind while filing.
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