How to Fix TDS Mismatch Between Form 26AS and AIS
- Rashmita Choudhary
- Nov 3
- 9 min read
A TDS mismatch between Form 26AS and the Annual Information Statement (AIS) can lead to refund delays, inaccurate tax credit claims, and even income tax notices. The Income Tax Department uses both documents to verify reported income and tax deductions, so even minor differences must be resolved quickly. For Assessment Year 2025–26, the emphasis on reconciling TDS data across Form 26AS and AIS has increased, as Form 26AS remains the official record of TDS credits, while AIS provides a wider summary of income and financial transactions.
Table of Contents
What Are Form 26AS and AIS?
Form 26AS and the Annual Information Statement (AIS) are two essential documents that summarize a taxpayer’s income and tax-related transactions. Form 26AS acts as the official record of all tax deductions, advance tax payments, and refunds. It’s directly linked to your PAN and is updated when a deductor—such as an employer, bank, or tenant—deposits TDS or TCS on your behalf.
On the other hand, AIS provides a broader overview of your financial activity. It includes details like interest income, securities transactions, rent, dividend income, foreign remittances, and high-value purchases. The main difference lies in the scope—Form 26AS focuses on tax credits, while AIS captures a full spectrum of financial data for better transparency. Together, they help ensure that all income and deductions are correctly reflected before filing your Income Tax Return (ITR).
Why Do TDS Mismatches Occur Between Form 26AS and AIS?
TDS mismatches happen when the details reported by the deductor or data captured by the Income Tax Department don’t align. The common causes include:
Incorrect PAN entry by the deductor, causing the TDS to be credited to the wrong person.
Failure to file or update TDS returns by employers or banks.
Duplicate entries in AIS, where the same transaction is recorded more than once.
Timing differences, as AIS may show unverified or provisional data before it’s finalized in Form 26AS.
Incorrect ITR reporting, where the taxpayer claims TDS that doesn’t appear in Form 26AS.
Such mismatches can lead to reduced refunds, tax demands, or notices from the Income Tax Department, making reconciliation crucial before filing your return.
Step-by-Step Process to Fix TDS Mismatch
Download both Form 26AS and AIS from the Income Tax e-filing portal.
Compare the entries—check deductor names, TANs, TDS amounts, and financial years.
Confirm your PAN with the deductor to ensure accuracy in TDS reporting.
Contact the deductor to correct any discrepancies and ask them to file a revised TDS return (Form 24Q/26Q).
Provide feedback in AIS, marking entries as duplicate, incorrect, or not applicable.
Submit a rectification request under Section 154 if the mismatch affects your refund or computation.
File a revised ITR under Section 139(5) only if major changes are required in your previously filed return.
This systematic approach ensures accurate credit of taxes and reduces the risk of future compliance issues.
How to Verify and Report Incorrect TDS in AIS
To verify and correct errors in AIS, log in to the Income Tax portal and navigate to the AIS section. Review all listed transactions and cross-check them with your Form 16, 16A, and 26AS entries. If you find discrepancies, use the “Provide Feedback” feature within AIS. You can classify each transaction as “Correct,” “Duplicate,” “Incorrect,” or “Not Applicable.”
After submitting feedback, the Income Tax Department reviews the claim, and the corrected data is reflected in a few working days. Always retain supporting documents like TDS certificates or payment proofs, as they may be requested later for verification.
When to File a Rectification Request Under Section 154
If the TDS mismatch leads to an incorrect tax computation or refund issue, filing a rectification request under Section 154 is the most efficient solution. This option allows you to correct specific errors—like missing TDS credits—without refiling the entire return.
To file it, log in to the e-filing portal, select “Rectification Request,” and choose “Tax Credit Mismatch” as the reason. Attach valid TDS certificates and a short note explaining the discrepancy. Once submitted, the department verifies your claim and updates your return status accordingly.
When to File a Revised ITR Under Section 139(5)
If the mismatch impacts your total income, deduction claims, or previously filed figures, a revised ITR becomes necessary. Under Section 139(5), taxpayers can correct their return after the original filing but before the due date of December 31 of the assessment year.
Use accurate data from the corrected Form 26AS and AIS before refiling. A revised return replaces the original and ensures the correct TDS credits are reflected. Filing through professional platforms like TaxBuddy helps prevent future discrepancies by automating data imports and validations.
Legal and Judicial Highlights on TDS Mismatch Cases
Recent judgments have reinforced taxpayer rights in cases of TDS mismatches. The Allahabad High Court ruled in October 2025 that refunds cannot be denied solely because of mismatches in Form 26AS, provided the taxpayer has valid TDS certificates (Form 16A). This decision ensures that genuine taxpayers are not penalised for deductor errors and underscores the importance of maintaining proper documentation.
Such rulings push authorities to focus on the accuracy of TDS data rather than penalizing taxpayers for technical lapses beyond their control.
Preventive Tips to Avoid TDS Mismatch
Check Form 26AS and AIS regularly during the financial year.
Reconcile TDS and advance tax payments before filing ITR.
Keep Form 16, 16A, and other certificates organized and accessible.
Avoid claiming TDS amounts not visible in Form 26AS.
Ensure your PAN and bank account details are correct and verified.
Use rectification (Section 154) instead of revised returns when errors are limited to TDS mismatches.
These practices can help avoid delays in refunds and prevent unnecessary scrutiny.
Common Mistakes Taxpayers Make During Reconciliation
Many taxpayers overlook small details that lead to larger issues later. The most frequent mistakes include:
Ignoring provisional or duplicate entries in AIS.
Failing to update old bank accounts or PAN details.
Claiming TDS that appears only in AIS and not in Form 26AS.
Missing follow-ups with deductors for correction.
Submitting rectification requests without proper documentation.
By staying vigilant and reviewing both documents together, these mistakes can easily be avoided.
Role of TaxBuddy in Resolving TDS Mismatch Issues
TaxBuddy simplifies the entire reconciliation and rectification process for taxpayers. By uploading Form 26AS, AIS, and Form 16 to the TaxBuddy platform, users can automatically detect mismatches, generate reports highlighting discrepancies, and receive guided assistance on next steps.
TaxBuddy’s expert-assisted plans go a step further by handling communication with deductors and filing Section 154 or revised ITRs where required. This ensures accurate tax credits, timely refunds, and full compliance with Income Tax Department requirements.
Conclusion
TDS mismatches between Form 26AS and AIS can lead to unwanted complications, including refund delays and scrutiny notices. Regularly cross-verifying both documents, addressing discrepancies promptly, and maintaining updated records are essential for smooth tax compliance.
Platforms like TaxBuddy make the process effortless by offering automated comparison tools and professional guidance. For anyone looking for assistance in tax filing, it is recommended to download the TaxBuddy mobile app for a simplified, secure, and hassle-free experience.
FAQs
1. Does TaxBuddy offer both self-filing and expert-assisted plans for ITR filing, or only expert-assisted options?
TaxBuddy provides flexibility through two filing options—self-filing and expert-assisted filing. The self-filing plan is ideal for salaried individuals with straightforward income sources, allowing them to file returns independently using guided prompts and automated checks. The expert-assisted plan is designed for taxpayers with multiple income streams, capital gains, or business income, where TaxBuddy’s professionals handle the entire process. This dual-approach system ensures every taxpayer can choose based on their comfort level, complexity of income, and time availability.
2. Which is the best site to file ITR?
Among various online platforms available in India, TaxBuddy stands out as one of the most reliable for filing ITR. It combines AI-driven error detection with expert human review, ensuring accuracy and compliance with the latest Income Tax Act amendments. TaxBuddy also simplifies the process by importing Form 16 data automatically, reconciling AIS and Form 26AS, and identifying deductions and credits that might be missed manually. This makes it suitable for both beginners and professionals looking for a smooth, transparent filing experience.
3. Where to file an income tax return?
Income Tax Returns (ITRs) can be filed on the official Income Tax e-filing portal at incometax.gov.in or through authorized platforms like TaxBuddy, which streamline the process using automation and expert guidance. While the official portal provides direct access, platforms like TaxBuddy enhance convenience by handling pre-filling, verification, and rectification, ensuring your return is complete and compliant before submission.
4. What is the difference between Form 26AS and AIS?
Form 26AS is a consolidated statement that shows all taxes deducted, collected, or paid on your behalf, including TDS, advance tax, and refunds issued by the government. It acts as the primary proof of tax credit. The Annual Information Statement (AIS), however, is a detailed record of all your financial activities reported to the Income Tax Department, such as bank interest, dividend income, rent received, capital gains, foreign remittances, and high-value transactions. While both serve verification purposes, Form 26AS is used for claiming TDS credits, whereas AIS helps ensure that all your income sources are disclosed accurately in your return.
5. Can TDS credits shown only in AIS be claimed?
TDS credits can only be claimed when they appear in Form 26AS, not just in AIS. This is because Form 26AS is considered the final tax credit statement. If TDS appears only in AIS, it indicates that the deductor has reported it but hasn’t yet deposited or updated it correctly in the TDS return. In such cases, taxpayers should contact the deductor to revise their TDS filing. Alternatively, they can use the feedback option in AIS to mark such transactions as “incorrect” or “pending verification” until corrected.
6. How long does it take for TDS corrections to appear in Form 26AS?
After the deductor files a revised TDS return, corrections generally take 10 to 15 working days to reflect in Form 26AS. This duration may vary depending on processing speed and the number of revisions submitted. Taxpayers are advised to monitor both Form 26AS and AIS periodically to ensure updates are correctly reflected before filing or revising their ITR. Keeping TDS certificates and acknowledgment numbers handy can help track these updates more efficiently.
7. What happens if the mismatch delays a refund?
If your refund is delayed due to a mismatch between Form 26AS and AIS, the Income Tax Department temporarily puts the refund on hold until the discrepancy is resolved. Once the deductor corrects the TDS return or you file a rectification under Section 154, the department reprocesses your ITR automatically. The corrected refund is then credited directly to your pre-validated bank account. Timely follow-ups and proactive mismatch resolution ensure faster refund disbursement.
8. Is filing a rectification request under Section 154 better than filing a revised ITR?
Filing a rectification request under Section 154 is often faster and more convenient when the issue is limited to a TDS mismatch or incorrect credit reflection. It avoids refiling the entire ITR and focuses only on correcting computational or factual errors. A revised ITR under Section 139(5), on the other hand, is recommended when the mismatch affects your income details or deduction claims. Rectification is preferred for minor errors, while revised returns suit more comprehensive updates.
9. What documents are needed to correct TDS mismatches?
To fix TDS mismatches, keep the following documents ready:
Form 16 or Form 16A issued by your employer or deductor.
TDS challans or payment receipts confirming the deducted amount.
Bank statements showing credited or deducted TDS.
Communication with the deductor (emails or letters) for follow-up proof. These records help support rectification requests under Section 154 and can be uploaded when responding to Income Tax notices.
10. What if my deductor doesn’t update the TDS return?
If your deductor fails to correct or update the TDS return, your Form 26AS will continue showing incomplete credits. In such situations, maintain written proof of communication with the deductor requesting rectification. If the issue remains unresolved, you can file a grievance on the Income Tax e-filing portal under the “Grievances” tab. While the Income Tax Department cannot directly alter deductor records, your complaint ensures official documentation of your effort to rectify the error.
11. How can TaxBuddy help fix TDS mismatches?
TaxBuddy offers an automated reconciliation system that compares entries from Form 26AS, AIS, and Form 16 to detect inconsistencies. The platform highlights mismatched transactions and provides step-by-step guidance on how to correct them. In expert-assisted plans, TaxBuddy professionals directly manage communication with deductors, file Section 154 rectifications, or revise your ITR if necessary. This ensures your tax credits are accurate and refunds are not delayed, while maintaining full compliance with the Income Tax Department’s protocols.
12. Can TDS mismatches trigger income tax notices?
Yes, unresolved TDS mismatches are among the most common reasons for receiving notices under Section 143(1) (intimation for mismatch in tax credit) or Section 142(1) (notice for clarification or inquiry). When your claimed TDS doesn’t match the department’s records, it raises a discrepancy in your return. Timely cross-verification of Form 26AS and AIS, and correcting mismatches through the appropriate channels, helps prevent such notices. TaxBuddy’s automated reconciliation and expert assistance can further minimize these risks by ensuring all entries match before submission.
