Tax filers need to see if the information contained in it matches with the information in the Annual Information Statement (AIS) and in Form 16. Check both documents Checking only Form 26AS or AIS will not suffice for filing tax returns this year.

The December 31 deadline for filing Income-Tax Return (ITR) for FY 2020-21 is approaching soon, taxpayers should begin the process now and not wait till the last minute. The filing of ITR should begin with checking Form 26AS.

Tax filers need to see if the information contained in it matches with the information in the Annual Information Statement (AIS) and in Form 16. Check both documents Checking only Form 26AS or AIS will not suffice for filing tax returns this year.

Form 26AS, which is also known as the passbook for your tax deposits, is an important document, and your tax refunds, if any, after filing the income tax return (ITR) depend on the tax deduction figure as shown in Form 26AS. So financial planners advise matching the tax credit figures in your Form 26AS with your Form 16 or Form 16A in order to ensure that the tax actually deducted by your employer or bank on your interest income or by your landlord against your rent match with the amount reflected in the Form 26AS.

Why mismatch happens 

There are many reasons which can lead to an error in Form 26AS. If the amount of TDS deducted from your salary or interest income is not correctly reported by your employer and bank respectively then it may lead to an error in your Form 26AS. Sometimes, while filing TDS returns, the deductor may mention the wrong PAN against your name which can lead to an error in your Form 26AS.

Kush Vatsaraj of TP Ostwal & Associates LLP said, "Errors in the 26AS crop up due to various reasons. Mismatches or errors in 26AS affect the availability of TDS as a credit against taxes payable. Unfortunately, as a person whose tax has been deducted, there isn’t much you can do if there is an error in your 26AS. The only recourse is approaching the deductor to rectify or refile the issue creating TDS returns and correct the mismatch."

Some chartered accountants say mistakes such as quoting the wrong assessment year or making the incorrect category of taxes paid while depositing advance tax or self-assessment tax can also result in errors.

How to rectify error in Form 26AS
Rectification of error in Form 26AS depends on the cause of the error. For instance, if the deductor (employer or bank) has made a mistake while depositing your tax against your PAN with the government, then in such a case, you need to contact your deductor to rectify the mistake.

Vatsaraj said: "If you notice an error in the 26AS, you should first try and reconcile the differences between the amount that should be seen in the 26AS according to you versus what is actually there. This will help you identify who has to rectify the error."

The most likely explanation for the error includes incorrectly quoted PAN, incorrect assessment year mentioned, payment of tax under the wrong section, omitting the details of TDS payment in the return, incorrect deduction or payment, amongst other things.

"All these issues can only be rectified by the deductor revising the TDS return. Contact the person who deducted the TDS and ask them to check the TDS returns filed by them for errors and explain what the mismatch you are seeing. They will need to revise the TDS returns to rectify the mistake. If you are unable to resolve the issue after contacting the deductor, the best course of action is to connect with a professional for assistance," he added.