Navigating Mismatches in ITR Filing 2025: Form 26AS, AIS, and Form 16

Filing Income Tax Returns (ITR) is an annual responsibility for taxpayers. However, discrepancies between Form 26AS, the Annual Information Statement (AIS), and Form 16 can create confusion and potential compliance issues. It is crucial to address these mismatches to ensure accurate ITR filing, avoid delays in refunds, and prevent potential penalties or scrutiny from tax authorities.

Understanding the Documents

• Form 16: Issued by employers, it summarizes an employee's salary, deductions, exemptions, taxable income, and Tax Deducted at Source (TDS). If you've switched jobs, you'll receive multiple Form 16s.
• Form 26AS: This is the Income Tax Department's record of tax credits associated with your Permanent Account Number (PAN), including TDS, Tax Collected at Source (TCS), advance tax, and self-assessment tax.
• AIS: Provides a comprehensive view of financial transactions, including interest from savings accounts and deposits, securities transactions, and other financial activities.

Identifying the Mismatches

Compare the income and TDS details across all three documents. Create a detailed table to pinpoint the exact discrepancies between Form 16, Form 26AS, and AIS. Mismatches can arise from various sources, including:

• Errors in TDS Reporting: Mistakes in PAN, Tax Deduction and Collection Account Number (TAN), challan details, or amounts reported by employers or deductors.
• Delayed Deposits or Reporting: Delays in depositing TDS or reporting it to the Income Tax Department.
• Incorrect Tax Calculations: Errors in calculating taxable income or TDS.
• Oversight in Income Clubbing: Failure to include income from all sources.
• Technical Glitches: Systemic issues on the e-filing portal can also lead to data mismatches.

Steps to Take When Mismatches Occur

1. Verify PAN and TAN: Ensure your PAN is correctly spelled and matches across all documents. Also, verify the deductor’s TAN and legal name in Form 16 against Form 26AS. If the PAN or TAN is incorrect, even by one character, request a correction from the deductor.
2. Contact the Deductor: If you identify errors in Form 16 or other documents, immediately contact your employer or the deductor to rectify the discrepancies. Request a revised Form 16 or relevant documents with the corrected information.
3. Submit Feedback on the Portal: If you notice incorrect details in the AIS or Form 26AS, file an AIS/Form 26AS feedback request detailing the issue. The Income Tax Department will then forward the feedback to the employer or TDS deductor, who has ten days to respond. If they respond positively, the changes will reflect in your AIS/Form 26AS.
4. Reconcile and Re-check: After the deductor files a correction statement, re-check Form 26AS after the next processing cycle, as corrections typically take 7-30 days to reflect.
5. File ITR Based on Accurate Calculation: If the mismatch is due to a technical glitch or if you have sufficient proof of the correct income, file your ITR with the accurate figures, regardless of what the AIS, Form 26AS, and Form 16 state. Keep supporting documents handy, as your case may be selected for verification.
6. Provide Explanations: If you receive a scrutiny notice due to the mismatch, provide the necessary proofs and explanations to the tax department. If the department is satisfied, the notice will be dropped.
7. Seek Professional Help: If the mismatches are complex or the deductor is unresponsive, seek guidance from a tax professional to navigate the reconciliation process.

Consequences of Ignoring Mismatches

Ignoring discrepancies can lead to several adverse outcomes:

• Delayed Refunds: Discrepancies can delay the processing of your income tax refund.
• Penalties: Underreporting income can result in penalties.
• Scrutiny from Tax Authorities: The Income Tax Department may scrutinize your return more closely.
• Rejection of ITR: In some cases, unresolved mismatches can lead to the rejection of your ITR.

By proactively addressing mismatches between Form 26AS, AIS, and Form 16, taxpayers can ensure accurate ITR filing, avoid potential penalties, and facilitate smoother processing of their tax returns.