What to Do When TDS Appears in AIS But Not in 26AS

Tax filing can be a complex process, especially when dealing with discrepancies in the documents provided by the Income Tax Department. One of the most common issues taxpayers face is the discrepancy between the Annual Information Statement (AIS) and Form 26AS. Both documents play a crucial role in the filing process, but they contain different types of information. Understanding the difference between AIS and 26AS, and how to resolve any issues regarding missing TDS in Form 26AS, is essential for ensuring accurate and timely filing. Let us understand the key differences between AIS and 26AS, why TDS may appear in AIS but not in 26AS, and the steps to take to resolve such discrepancies, with the help of platforms like TaxBuddy for smooth and error-free filing.

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Table of Contents

• What is the Difference Between AIS and 26AS?

• Why TDS Appears in AIS But Not in 26AS

• Steps to Take When TDS is Missing from Form 26AS

• How to Rectify the Discrepancy in Your Tax Return

• Role of TaxBuddy in Ensuring Correct Tax Filing

• Conclusion

• FAQs

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What is the Difference Between AIS and 26AS?

AIS and Form 26AS are both tax-related documents provided by the Income Tax Department, but they serve different purposes.

• Form 26AS: This is a comprehensive tax statement that shows all the taxes credited or deducted in your name during a specific financial year. It includes details of TDS (Tax Deducted at Source), tax collected at source (TCS), advance tax, and self-assessment tax payments. It acts as a summary of all your tax-related transactions and is essential for filing your Income Tax Return (ITR). Form 26AS is updated by the Income Tax Department as soon as TDS and other payments are credited to your account.
  

• AIS (Annual Information Statement): The AIS is a relatively newer addition to the Income Tax Department's documentation system. It provides more detailed information, not just about taxes, but also about other financial activities like investments, property transactions, and bank interest. The AIS is meant to give a more holistic view of your financial activities during the year, while Form 26AS is focused primarily on tax-related information.
  

Both documents are available for taxpayers through the Income Tax Department's e-filing portal, but they cater to different needs. While Form 26AS is directly related to your tax liabilities and payments, AIS provides a broader picture of your financial dealings.

Why TDS Appears in AIS But Not in 26AS

It’s not uncommon for taxpayers to find TDS information in their AIS but not in their Form 26AS. This can happen for several reasons:

• Delayed Updates: Sometimes, the information from the deductor (the person who deducted the TDS) may not have been updated in Form 26AS yet. The AIS, however, might show the information immediately once the data is available to the Income Tax Department.
  

• Differences in Reporting: AIS includes a wide range of financial transactions, including details from banks, mutual funds, and other entities, which may show TDS deductions at an earlier stage than Form 26AS. In contrast, Form 26AS specifically focuses on taxes deducted at source and tax paid, and it can take time for this data to be fully reconciled with the department's system.
  

• Partial Uploading of Data: Sometimes, the deductor may not update the TDS details promptly in the system that feeds into Form 26AS, but they are included in the AIS if they are reported to the department.

While the discrepancy between AIS and 26AS is usually temporary, it is important to keep track of these issues, as it could delay the tax filing process and cause discrepancies in your final tax liability.

Steps to Take When TDS is Missing from Form 26AS

If you notice that TDS is missing from your Form 26AS but is listed in your AIS, follow these steps:

• Check for Delay in TDS Updates: Form 26AS is updated by the Income Tax Department as soon as the TDS data is uploaded by the deductor. Sometimes, there might be a delay in this process, so it’s essential to wait a few days for updates. Keep an eye on both AIS and Form 26AS for any changes.
  

• Contact the Deductor: If the TDS is still missing after a reasonable period, contact the deductor (the party who deducted TDS) to ensure they have correctly uploaded the details in the Income Tax Department's system. Sometimes, the deductor may not have filed the TDS information or may have made an error in their filing.
  

• Verify the PAN Details: Ensure that the deductor has entered the correct Permanent Account Number (PAN) while filing the TDS. An incorrect PAN will lead to the TDS not reflecting in your Form 26AS. If the PAN is incorrect, the deductor needs to correct it on their end.
  

• Wait for Updated Form 26AS: If the issue persists, continue to monitor the updates in Form 26AS over the next few days or weeks. In many cases, the missing TDS will appear in the next version of Form 26AS once the department processes it.
  

• File a Grievance: If the issue is not resolved within a reasonable time, you can file a grievance on the Income Tax Department's portal or contact their helpline for further assistance.

How to Rectify the Discrepancy in Your Tax Return

If the TDS in Form 26AS is missing but it appears in your AIS, you can still file your Income Tax Return (ITR). However, it is important to rectify the discrepancy before submitting your return. Here's how:

• File Based on AIS Data: If the TDS information is correctly reflected in your AIS but missing in Form 26AS, you can use the TDS data from AIS while filing your ITR. Ensure that the TDS details are included in the correct section of your return, and accurately report the income and taxes paid as per the AIS.
  

• Add the TDS Details in the ITR: If the TDS is missing from Form 26AS, but you have sufficient proof, such as TDS certificates or AIS, you can manually add the TDS details in the ITR. Be sure to attach the supporting documents, such as Form 16 or Form 16A, to substantiate the TDS claims.
  

• Reconcile at the Time of Assessment: If the discrepancy between AIS and Form 26AS remains unresolved, the Income Tax Department will reconcile the information during the assessment process. However, if there are significant mismatches, you may be asked to submit an explanation or documents to support your TDS claim.
  

• Use TaxBuddy for Assistance: TaxBuddy can help you ensure that your tax filing is correct, even if there are discrepancies between your AIS and Form 26AS. TaxBuddy’s expert support can guide you through the process, helping you avoid any delays or penalties.

Role of TaxBuddy in Ensuring Correct Tax Filing

TaxBuddy plays an essential role in ensuring that taxpayers file their returns correctly, even when discrepancies arise between AIS and Form 26AS. The platform offers several features that make the process easier:

• Automatic Data Extraction: TaxBuddy automatically pulls in all available data from Form 26AS and AIS, ensuring you have all the relevant details at your fingertips. This minimizes the risk of errors and ensures that your filing is accurate.
  

• Expert Assistance: If there are discrepancies, TaxBuddy provides expert guidance on how to resolve them, helping you navigate the complex tax system. The platform ensures that your tax filing is not delayed or penalized due to missing or incorrect data.
  

• Real-Time Support: TaxBuddy offers real-time support to address issues like missing TDS or discrepancies in your returns. Whether you need help reconciling AIS data or verifying TDS credits, the platform ensures timely resolution.

Conclusion

Understanding the difference between AIS and Form 26AS is crucial for filing accurate tax returns. Discrepancies, such as missing TDS in Form 26AS but appearing in AIS, are common, but they can be rectified by following the correct steps. Taxpayers must ensure that all TDS details are reconciled before filing their returns. Using platforms like TaxBuddy can help ensure that these discrepancies are handled smoothly, minimizing delays and errors in your filing process. For anyone looking for assistance in tax filing, it is highly recommended to download theTaxBuddy mobile app for a simplified, secure, and hassle-free experience.

Frequently Asked Question (FAQs)

Q1: Does TaxBuddy offer both self-filing and expert-assisted plans for ITR filing, or only expert-assisted options?

Yes, TaxBuddy offers both self-filing and expert-assisted plans for Income Tax Return (ITR) filing. If you’re comfortable with tax filing and prefer to handle it on your own, you can choose the self-filing option, where you will have access to the necessary tools and resources to complete the process independently. However, if you find the filing process complex or need additional guidance, the expert-assisted plan is perfect for you. With this option, a qualified tax professional will guide you through the entire process to ensure accuracy and compliance.

Q2: Which is the best site to file ITR?

The best site to file ITR depends on your needs. If you prefer a smooth, error-free filing experience with professional assistance, TaxBuddy is an excellent choice. It offers both self-filing and expert-assisted options, along with a user-friendly interface. TaxBuddy’s AI-driven technology ensures accuracy in tax filings and simplifies the process for both individuals and businesses. On the other hand, the official Income Tax Department portal is a reliable option if you are familiar with the process and prefer to file without additional help, though it may lack the guidance and features provided by platforms like TaxBuddy.

Q3: Where to file an income tax return?

You can file your ITR either on the official Income Tax Department portal at incometax.gov.in or on platforms like TaxBuddy. TaxBuddy is ideal for individuals who prefer a simplified process with the option for professional assistance. The platform’s AI-powered tools ensure your filing is seamless and accurate. While the official portal is a viable option, TaxBuddy provides an additional layer of convenience and support for those who need help or want to minimize the risk of errors.

Q4: Can I file my ITR after the deadline without penalties?

No, you cannot file your ITR after the deadline without penalties. If you miss the filing deadline, you can still file a belated return, but this will incur penalties and interest charges on unpaid taxes. The penalties can go up to ₹5,000, depending on how late the filing is, and interest will be charged under sections 234A, 234B, and 234C of the Income Tax Act. It’s always best to file on time to avoid these additional charges and the delay in receiving any potential refunds.

Q5: What happens if I fail to file ITR within the extended deadline?

If you fail to file your ITR within the extended deadline of September 15, 2025, for FY 2024-25, you can still file a belated return until December 31, 2025. However, filing after the extended deadline will result in penalties and delays in processing your refund. You will also lose the opportunity to claim certain benefits available to those who file on time. It’s essential to file your return as soon as possible to avoid unnecessary penalties and delays in processing.

Q6: How do I check the status of my income tax refund?

To check the status of your income tax refund, you can visit the official Income Tax Department portal. Once logged in, use your PAN (Permanent Account Number) and the relevant assessment year details to track your refund status. If you filed through TaxBuddy, you can also track your refund status directly within the platform, which simplifies the process and provides updates on your return status.

Q7: Does TaxBuddy assist with TDS credit verification?

Yes, TaxBuddy assists with verifying TDS (Tax Deducted at Source) credits. One of the key features of TaxBuddy is ensuring that your TDS credits are accurately reflected before filing your return. The platform checks if your TDS credits match the records in the system, ensuring that your tax filing is correct. This reduces the chances of discrepancies that could delay the processing of your refund or require additional clarifications from the Income Tax Department.

Q8: How long does it take for TaxBuddy to process an ITR filing?

The processing time for an ITR filing with TaxBuddy can vary depending on the complexity of your return. For simple returns, such as those filed by salaried individuals, the process can typically be completed within a few hours. However, if your return requires expert assistance due to complexity or additional documentation, it may take a little longer. TaxBuddy ensures that all returns are processed quickly, accurately, and in compliance with the latest tax laws.

Q9: What if I file ITR after the extended deadline?

If you file your ITR after the extended deadline of September 15, 2025, you can still submit a belated return by December 31, 2025. However, you will be subject to penalties and interest on any unpaid taxes. Additionally, the processing of your refund will be delayed compared to those who file on time. Filing early ensures that your return is processed sooner, and you can receive any refunds more quickly.

Q10: Are there penalties for errors in my ITR filing?

Yes, penalties can be imposed if there are errors in your ITR filing. Common errors, such as incorrect income reporting or missing deductions, can trigger scrutiny from the Income Tax Department. In some cases, this may lead to penalties, interest on unpaid taxes, or the requirement to file a revised return. It’s crucial to ensure that your ITR is filed accurately to avoid penalties and delays. Platforms like TaxBuddy offer error-checking features to minimize mistakes and ensure a smooth filing process.

Q11: Can I make corrections in my ITR after filing?

Yes, if you realize that there were mistakes in your ITR after filing, you can file a revised return. This can be done before the end of the assessment year to correct any discrepancies, such as inaccurate income reporting or missing deductions. Filing a revised return ensures that your taxes are filed correctly and that you avoid penalties or unnecessary delays in processing. TaxBuddy also makes this process easier by guiding you through the necessary steps.

Q12: Does TaxBuddy support all tax regimes for ITR filing?

Yes, TaxBuddy supports both the old and new tax regimes for ITR filing. Depending on your income and financial situation, you can choose the regime that offers the most benefit. The old regime allows for deductions and exemptions, while the new regime offers lower tax rates with no deductions or exemptions. TaxBuddy helps you determine the most advantageous tax regime for your situation, ensuring that you file your return in the most tax-efficient manner possible.