When you file your income tax return, your tax credit plays a major role. The tax amount that has already been deducted from your payment must match your Form 26AS. Sometimes this total does not match. This is called a tax credit mismatch in Form 26AS.
A mismatch can cause delays in refund, extra notices, and even rejection of your return. Many taxpayers face this every year. So, let’s learn what causes it and how you can fix it.
What Is Form 26AS?
Form 26AS is a tax statement for a year that displays,
- The amount of tax that has been deducted from your income
- Tax collected at source
- Advance tax paid
- Refund issued
- High-value transactions
You can find this form through the income tax portal. All you need is your PAN and login information.
You can think of it as your tax ledger. You will be able to see how much and who paid tax on your behalf. That is why this form is considered to be an important document for filing ITR purposes.
Where Does the Tax Credit Come From?
Your tax credit is an indication of the tax you paid or the tax that was deducted from your earnings by others.
To give you some clarity,
- TDS deducted by your employer
- TDS deducted by the bank on the interest earned on your savings
- TDS deducted by clients for freelance work
- Advance tax paid directly
- Self-assessment tax
What this means is that your employer, bank, or payer should file these details with the government correctly.
Reasons for Tax Credit Mismatch in Form 26AS
Tax credit mismatch occurs for several minor reasons. Even a single spelling error may destroy the connection. Let us examine the main ones in detail,
1. Incorrect PAN Details Submitted to the Tax Authorities
If your PAN is misentered at the time of tax deduction, that amount of tax will not be credited to your account.
For example, if the deductor inputs ABCDF1234E instead of ABCDE1234F, your tax will be secretly debited under another person’s account.
Consequently, your Form 26AS will not indicate TDS belonging to you.
2. The Deductor Did Not Submit the TDS Return
Some companies procrastinate their TDS return filing. When they do the tax deduction but don’t file the TDS return, your Form 26AS will remain empty.
To state an example, think about a situation where the employer withheld TDS from the employee’s salary in March. But filed the TDS return in July
The change in your Form 26AS will thus reflect only after July.
3. Deductor Filed TDS But Entered Wrong Amount
This often occurs when there is more than one employee or client involved.
You might notice,
- Less tax credited than the actual
- Value taken out
- Incorrect time period given
4. Payment Made But Not Included in Reporting
On occasion, banks do not report to the tax authorities for a quarter.
This can happen due to,
- The amount of tax deducted was not equal
- The system crashed while uploading
- The return was not accepted
Thus, your Form 26AS will be incomplete.
5. TDS Deducted Under Another Section
Tax must be recorded under the correct section.
Example mistakes,
| Actual Income Type | Wrong Section Used |
| Salary income | Section 194J |
| Consultant fee | Section 192 |
| Fixed deposit interest | Section 194A entered incorrectly |
When the system mismatch occurs, credit mapping fails.
How Mismatch Affects Your Income Tax Filing
The incorrectness of tax credits can cause the following consequences,
- Refunds being delayed
- ITR processing failure
- A tax demand notice was issued
- Filing ITR again under rectification
When a tax payment is made but not considered, the computer thinks you have not paid tax. Hence, it is crucial to match Form 26AS before submitting ITR.
Identifying Tax Credit Mismatch
Simply conduct the following checks in order.
Step 1 – Get a copy of Form 26AS
From, income tax portal, view Form 26AS
Step 2 – Verify salary TDS against Form 16
Your Form 16 must be consistent with Form 26AS
Consider the following factors,
- Gross income
- Paid tax amount
- Assessment year
Step 3 – Check interest income against bank interest
Banks provide Form 16A. Cross-check the figures with Form 26AS.
Step 4 – Examine the advance tax paid
Look at,
- Amount paid
- Date paid
- BSR code
- Serial number
The tax credit will not be reflected if any number is not the same.
Step 5 – Check tax assessment
Confirm via Challan Status Inquiry through the receipt.
How to Fix Tax Credit Mismatch
In case of a mismatch, corrective measures are really simple,
If PAN is incorrect
Get in touch with your deductor and request a TDS return amendment
TDS return not filed
Request the deductor to make a revised filing
Wrong amount entered
Get the deductor to revise either Form 26Q or Form 24Q
Tax payment challan not updated
Open a support ticket on the tax portal and provide payment details as an attachment
The employer hasn’t updated salary figures
Post rectification, request a new Form 16
Simple Checklist to Avoid Mismatch Next Year
Before you file your returns,
- Download Form 26AS
- Match it with Form 16 and Form 16A
- Track quarterly updates
- Keep payment receipts handy
- Confirm tax deductions monthly
Doing so will eliminate future misunderstandings.
Conclusion
A tax credit mismatch in Form 26AS usually happens due to errors made by deductors, delayed filing, wrong PAN entry, or incorrect tax reporting. You can avoid future trouble by checking Form 26AS before submitting your ITR. Always verify salary TDS, bank interest TDS, challan payments, and refund status. Matching the amounts helps your ITR process smoothly and avoids unnecessary notices. Filing after verifying details gives peace of mind and ensures that all taxes paid actually reflect under your account.
