ITR Tips: Form 16 shows the tax deducted by your company, while Form 26AS shows the actual tax deposited to the government. By combining the two, you can catch mistakes, avoid notices or penalties and get the right refund.
ITR Tips: Form 16 is an important document while filing Income Tax Return (ITR) for salaried persons. According to the rules, employers (companies) have to file e-TDS return for January-March quarter by 31st May. After that they have to issue Form 16 to the employees within 15 days. That is, June 15 is the last date for issuing Form 16. Therefore, most of the employees must have received their Form 16 by now.
What is the difference between Form 16 and Form 26AS?
Form 16: This is issued by your employer (company). It only contains the details of TDS (Tax Deducted at Source) deducted on your salary.
Form 26AS: It is issued by the government (Income Tax Department). It shows the complete record of TDS and TCS (TCS – Tax Collection at Source) deducted from all sources linked to your PAN card. That is, TDS on bank interest, TDS on shares, TDS on fixed deposits, etc. are all included in it.
How to check Form 16 and Form 26AS?
1. Match PAN Number: Your PAN number should be correct and same in both the documents.
2. Reconcile salary amount: The total salary shown in Form 16 should match the salary shown in Form 26AS.
3. Reconcile TDS amount: The TDS shown in Form 16 should match the TDS shown in Form 26AS.
What to check in Form 16?
Exempt income: If you have claimed HRA, LTA, or any other exempted benefit (like health insurance, children’s tuition fees) in the old tax regime, make sure it is reflected correctly in Form 16.
Documents submitted? If you did not submit documents like rent agreement or receipts to the company, more TDS may be deducted on your salary.
Job changed? If you have changed jobs in the year, check the tax treatment on amounts like gratuity or leave encashment.
What to check in Form 26AS?
Make sure that the TDS deducted by the employer, TDS on bank interest and advance tax/self-assessment tax paid by you are reflected correctly.
What to do if there is a mismatch between Form 16 and 26AS?
1. Contact the employer: First of all, talk to your company (employer) or the person who has deducted TDS.
2. Wrong PAN: If the deductor has entered your wrong PAN, then he will have to revise the TDS return.
3. TDS not deposited: Sometimes TDS is deducted but not deposited to the government. In such a case, the deductor will have to deposit this amount and update the return.
4. Wrong salary shown: If the employer has reported the salary amount incorrectly, then the wrong amount will also be shown in Form 26AS. Contact the employer to correct it.
Why is it necessary to match Form 16 and 26AS?
To file correct ITR: This prevents the mistake of under-reporting / overstating your income.
To get TDS credit: You get credit in the return only for the TDS shown in Form 26AS. In case of mismatch, there may be a problem in getting this credit.
To avoid notice: If there is a difference in both the forms, then you may get a notice of defective return from the Income Tax Department or you may be scrutinized.
Do not delay refund: Wrong information can also delay your refund.
