Income Tax Return Filing: How To Rectify Tax Credit Mismatch?

Filing income tax returns is a crucial annual obligation for taxpayers, ensuring compliance with tax laws and avoiding any legal repercussions. However, one common challenge faced by taxpayers is a TDS (Tax Deducted at Source) mismatch. This occurs when the TDS mentioned in Form 26AS, the taxpayer's tax credit statement, does not match the TDS reported by the deductor.

Despite being available in the Form 26AS statement, the tax credit could not, however, be given to the taxpayers while processing returns.

Therefore, the CBDT has instructed taxpayers to confirm whether the demand raised is due to a tax credit mismatch as a result of such inaccurate particulars and to submit rectification requests with accurate specifics of TDS/tax claims for the adjustment of these demands.

Reasons for tax credit mismatches:

• Deductor's TAN is invalid or wrong
• Furnishing a single TAN to several deductors
• Information being entered incorrectly in TDS Schedules on the Return Form
• Furnishing inaccurate challan information on advance tax, self-assessment tax, etc.
• The amount of tax deducted by one deductor was incorrectly added to the tax deducted by another deductor.

What to do if there is a tax-credit mismatch in ITR?

Mismatch in TDS-

• Inform the employer or deductor in charge of taking TDS deductions from your income. A modified TDS return must be submitted by your employer or deductor.

If you included any additional tax credit mismatches (AT/SAT) in your income tax return:

• You can file a revised return if you haven't received a notice under Section 143(1); OR
• Through the Rectification Request Service, you can submit a rectification request. (Only if you obtain a notice under Section 143(1).)
• Please double-check that your ITR accurately quotes the challan information.
• Please take note that the tax credit provided/restricted in the ITR is limited to the amount shown on your Form 26 AS.