TDS Mismatch in Form 26AS in 2026

Tax Deducted at Source (TDS) is one of the most important tax credits used while calculating an individual's final income tax liability. When TDS is deducted from salary, interest, commission, professional income, rent or other eligible payments, the taxpayer generally expects the deducted amount to appear correctly in the tax records.

However, sometimes the TDS amount shown in Form 26AS, AIS, Form 16 or Form 16A does not match the TDS claimed in the Income Tax Return (ITR).

A TDS mismatch can result in a lower refund, additional tax demand or difficulty while processing the ITR.

The good news is that a mismatch does not necessarily mean that the taxpayer has made a mistake. In many cases, the problem occurs because the employer, bank, tenant, company or another deductor has reported incorrect information or has not yet filed the required correction statement.

In 2026, taxpayers also need to understand the transition from Form 26AS under the Income-tax Act, 1961 to the new annual tax statement framework under the Income-tax Act, 2025.

What Is a TDS Mismatch?

A TDS mismatch occurs when the TDS amount claimed by the taxpayer in the ITR does not match the amount available in the Income Tax Department's records.

For example:

In this example, the taxpayer has claimed ₹75,000 of TDS, but only ₹60,000 is available in the department's records.

The difference of ₹15,000 may result in a tax credit mismatch.

The Income Tax Department's tax-credit mismatch service specifically allows taxpayers to identify differences between TDS/TCS or other tax credits claimed in the return and the amounts reflected in the department's records.

Why Does TDS Mismatch Happen?

There are several reasons why TDS may not match.

Employer or Deductor Did Not File the TDS Return

The deductor is responsible for reporting the TDS to the Income Tax Department.

If the deductor has deducted tax but has not correctly reported it, the amount may not appear correctly in the taxpayer's tax records.

Incorrect PAN Quoted

One of the most common reasons is an incorrect PAN.

For example, if an employer or bank enters the wrong PAN while filing the TDS statement, the TDS may not appear in the correct taxpayer's account.

Wrong TDS Amount Reported

The deductor may report ₹50,000 instead of ₹60,000, resulting in a mismatch.

Incorrect Assessment Year or Tax Year

During the 2026 transition to the new Income-tax Act, incorrect selection of the applicable Assessment Year or Tax Year can also create mismatches.

The Income Tax Department has specifically highlighted that transition-period mismatches can arise where deductors use old Act section numbers or select the wrong AY/TY while filing TDS-related statements.

TDS Return Correction Is Pending

Sometimes the deductor has already identified an error and filed or is preparing a correction statement.

Until the correction is processed and reflected in the tax records, the taxpayer may continue to see a mismatch.

Timing Difference

TDS information may not appear immediately after the deduction.

The taxpayer should therefore allow reasonable time for the deductor's statement to be filed and processed before concluding that the TDS has disappeared.

TDS Mismatch Between Form 16 and Form 26AS

A common situation for salaried employees is:

Form 16 shows TDS = ₹80,000

but

Form 26AS shows TDS = ₹70,000

This means there is a ₹10,000 difference that should be investigated.

The taxpayer should compare:

• Employer's Form 16

• Form 26AS

• AIS

• TDS amount entered in ITR

• Salary income reported in ITR

If Form 16 is correct but Form 26AS contains a lower amount, the employer may need to correct the TDS statement.

Is Form 26AS Still Used in 2026?

Yes, but taxpayers need to understand the 2026 transition.

For Assessment Year 2026-27, Form 26AS continues to apply to the relevant financial year under the Income-tax Act, 1961.

For Tax Year 2026-27 onwards, the annual tax statement is under the new Income-tax Act, 2025 and is referred to as Form 168.

The Income Tax Department states that separate annual information statements are generated for AY 2026-27 and Tax Year 2026-27.

Therefore, taxpayers should select the correct year while checking their tax credits.

Form 26AS vs AIS for TDS Verification

Taxpayers often confuse Form 26AS and AIS.

Form 26AS primarily provides tax-credit information, while AIS contains broader information reported to the Income Tax Department.

AIS can contain information relating to:

• TDS

• TCS

• SFT transactions

• Tax payments

• Refunds

• Demand

• Other information reported to the department

The Income Tax Department's guidance confirms that AIS contains broader financial and tax-related information, while Form 26AS is used for tax-credit information.

For TDS reconciliation, taxpayers should therefore review the appropriate tax statement and not rely only on one document.

How to Check TDS in Form 26AS

For records applicable up to AY 2026-27, taxpayers can access Form 26AS through the Income Tax e-filing portal.

The general process is:

1. Log in to the Income Tax e-filing portal.

2. Go to e-File.

3. Select the option for Income Tax Returns.

4. Select View Form 26AS.

5. Continue to the TDS-CPC/related tax statement service.

6. Select the relevant Assessment Year.

7. View or download the tax statement.

The Income Tax Department currently provides these steps for accessing Form 26AS.

For Tax Year 2026-27 onwards, taxpayers should use the applicable Form 168 / Annual Tax Statement option.

How to Check TDS Mismatch Online

The Income Tax Department provides a Tax Credit Mismatch service on the e-filing portal.

The service can highlight differences in:

• TDS

• TCS

• Advance Tax

• Self-Assessment Tax

• Other tax credits

The department states that the service can be used after an ITR has been filed for the relevant assessment year.

This makes the service particularly useful when a taxpayer receives a lower refund or an unexpected tax demand after ITR processing.

What to Do If TDS Is Less in Form 26AS Than Form 16

Suppose your Form 16 shows:

TDS = ₹1,00,000

but Form 26AS shows:

TDS = ₹85,000

There is a ₹15,000 mismatch.

The first step should be to verify whether the employer actually deducted ₹1,00,000 from your salary.

Check:

• Salary slips

• Form 16

• Employer's TDS details

• Form 26AS

• AIS

• Bank salary credits where relevant

If the employer deducted ₹1,00,000 but reported only ₹85,000, contact the employer's payroll or finance department.

The Income Tax Department's guidance states that in case of TDS mismatch, the taxpayer should inform the employer/deductor, who may need to file a revised TDS return.

Can I Claim TDS Shown in Form 16 but Not in Form 26AS?

Taxpayers should be careful here.

The tax credit available while processing the ITR is generally restricted to the amount reflected in the department's tax-credit records.

The Income Tax Department specifically states that tax credit claimed in the ITR is restricted to the amount reflected in Form 26AS in the relevant framework.

Therefore, simply entering a higher TDS amount from Form 16 does not guarantee that the full amount will be allowed during processing.

The underlying TDS statement may need to be corrected by the deductor.

What If TDS Is Showing in Form 26AS but Not in the ITR?

This is a different type of mismatch.

Suppose:

• Form 26AS TDS = ₹70,000

• TDS claimed in ITR = ₹50,000

In this case, the taxpayer may have failed to claim the full available TDS.

The taxpayer should review the filed return and determine whether the correct TDS details were entered.

If the return has already been processed, the appropriate correction mechanism may depend on the stage of processing and the nature of the error.

TDS Mismatch After ITR Filing

A TDS mismatch can become particularly important after ITR filing.

For example:

TDS claimed in ITR: ₹90,000

TDS available in records: ₹70,000

If the taxpayer expected a refund based on ₹90,000 of TDS, the refund may be lower when the return is processed.

The difference may eventually appear in a tax-credit mismatch or 143(1) processing result.

Therefore, checking tax credits before filing the ITR can prevent many problems later.

What If TDS Mismatch Causes an Income Tax Demand?

Suppose you claimed ₹1,20,000 TDS in your ITR, but only ₹90,000 is available in the department's records.

The ₹30,000 difference can affect your final tax calculation.

If the tax liability is otherwise high enough, this may result in an additional tax demand.

In such a situation, do not immediately assume that the demand is correct.

First identify:

• Whether the TDS was actually deducted

• Whether the deductor reported it correctly

• Whether the PAN is correct

• Whether the relevant year is correct

• Whether a correction statement has been filed

Only after identifying the cause should you decide whether to pay the demand or seek correction.

How to Correct TDS Mismatch

The correction depends on where the error occurred.

If the Deductor Made the Error

Contact the deductor and request correction.

The deductor may need to file a revised TDS statement.

Examples include:

• Incorrect PAN

• Incorrect TDS amount

• Wrong assessment year

• Incorrect section

• Incorrect personal details

If You Entered the Wrong TDS in Your ITR

The appropriate correction mechanism depends on whether the return has already been processed and the relevant statutory options available.

If the Tax Department Has Not Considered Correct TDS

Where the correct TDS information is available in the relevant tax records but has not been properly considered during processing, the taxpayer may be able to use the applicable rectification mechanism.

The Income Tax Department provides a specific Tax Credit Mismatch Correction option for appropriate cases.

TDS Mismatch Before 143(1) Intimation

If the taxpayer identifies the mismatch before the return has been processed, it is better to resolve the issue as early as possible.

For example:

1. File ITR.

2. Check tax-credit mismatch.

3. Identify TDS difference.

4. Contact deductor.

5. Get TDS statement corrected.

6. Reconcile the tax records.

The Income Tax Department states that where there is a tax-credit mismatch and a 143(1) intimation has not yet been received, a revised return may be available in applicable cases.

TDS Mismatch After 143(1) Intimation

If the taxpayer has already received a 143(1) intimation, the available remedy can be different.

For certain tax-credit mismatches, a rectification request can be filed through the e-filing portal.

The Income Tax Department states that rectification can be used for appropriate tax-credit mismatches after a 143(1) intimation, subject to the applicable conditions.

Therefore, taxpayers should first determine whether the issue is:

• Deductor-side error

• ITR data error

• Processing error

• Tax payment mismatch

TDS Mismatch in Salary

Salary TDS mismatches are particularly common because employees usually rely on Form 16 for their tax-credit details.

Before filing an ITR, salaried taxpayers should compare:

If all five sources are consistent, the risk of a TDS-related processing issue is generally lower.

TDS Mismatch in Bank Interest

TDS on bank interest can also create mismatches.

For example, a bank may deduct TDS on:

• Fixed deposit interest

• Recurring deposit interest

• Other taxable interest payments

The taxpayer should compare the TDS shown in the bank's certificate with the amount reflected in the tax records.

If the amount differs, contact the bank and request correction where necessary.

TDS Mismatch for Professional Income

Professionals may receive payments after TDS deduction from companies or other clients.

For example:

• Professional fee: ₹2,00,000

• TDS deducted: ₹20,000

If only ₹15,000 appears in the tax records, the professional should reconcile the difference with the client/deductor.

This is particularly important for taxpayers receiving TDS from multiple clients.

TDS Mismatch for Rent

Landlords receiving rent can also face TDS mismatches.

Where a tenant is required to deduct TDS from rent, the landlord should reconcile:

• Rent received

• TDS certificate

• Form 26AS

• AIS

• ITR

A mismatch can affect the tax credit available against the landlord's tax liability.

TDS Mismatch During the 2026 Tax Transition

The year 2026 requires extra attention because the Income-tax Act, 2025 applies from Tax Year 2026-27.

The Income Tax Department has specifically stated that two separate annual information statements are generated during the transition:

• AIS for AY 2026-27, relating to FY 2025-26

• Form 168 for Tax Year 2026-27, relating to FY 2026-27

The department has also warned that mismatches can occur when deductors use old Act section numbers or select an incorrect AY/TY while filing TDS returns.

Therefore, taxpayers should pay particular attention to the year selected while checking TDS information in 2026.

Common Mistakes to Avoid

Filing the ITR Without Checking TDS

Do not simply copy TDS figures from Form 16 without checking the tax records.

Claiming TDS That Is Not Available

A taxpayer should not claim unsupported TDS merely because a deduction was expected.

Ignoring PAN Errors

An incorrect PAN can cause the TDS to appear under another taxpayer's record or fail to reflect correctly.

Ignoring the Correct Year

In 2026, taxpayers need to distinguish between AY 2026-27 and Tax Year 2026-27.

Waiting Until a Demand Is Raised

It is better to reconcile TDS before the return is processed.

Filing Rectification Without Checking the Deductor

If the underlying problem is an incorrect TDS statement, the deductor may need to correct the TDS return.

TDS Mismatch Checklist

Before filing an ITR, taxpayers can use this simple checklist:

• Check Form 16.

• Check Form 16A where applicable.

• Check Form 26AS.

• Check AIS.

• Verify PAN.

• Verify TDS amount.

• Verify the relevant AY/Tax Year.

• Match TDS with salary slips or payment records.

• Check whether the deductor has filed the TDS statement.

• Resolve major mismatches before filing where possible.

Frequently Asked Questions

What is a TDS mismatch?

A TDS mismatch occurs when the TDS claimed in the ITR differs from the TDS available in the Income Tax Department's records.

Why is my TDS not showing in Form 26AS?

Possible reasons include incorrect PAN, incorrect reporting by the deductor, non-filing or delayed filing of the TDS statement, incorrect year details or a pending correction statement.

Can I claim TDS if it is shown in Form 16 but not in Form 26AS?

Taxpayers should not assume that the amount will automatically be allowed. Tax credit is generally restricted to the amount reflected in the department's tax records, so the deductor may need to correct the TDS statement.

What should I do if Form 16 and Form 26AS do not match?

Compare the documents and contact the employer or deductor if the deductor's reported TDS is incorrect. The deductor may need to file a revised TDS statement.

Can TDS mismatch cause an income tax demand?

Yes. If the department does not allow the full TDS claimed in the ITR, the final tax liability can increase and may result in a demand.

Can I correct TDS mismatch after receiving 143(1)?

In applicable cases, taxpayers can use the rectification mechanism for tax-credit mismatches after receiving a 143(1) intimation.

Is Form 26AS available in 2026?

Yes. Form 26AS continues to apply to the relevant period under the Income-tax Act, 1961. For Tax Year 2026-27 onwards, the annual tax statement is provided under the new framework as Form 168.

Is AIS the same as Form 26AS?

No. AIS contains broader information, while Form 26AS is primarily used for tax-credit information under the applicable framework.

Who is responsible for correcting a TDS reporting error?

Where the mismatch is caused by incorrect reporting by the deductor, the employer, bank, company or other deductor generally needs to correct its TDS statement.

Conclusion

A TDS mismatch can reduce your income tax refund or even result in an unexpected tax demand. The problem can arise because of an incorrect PAN, incorrect TDS amount, wrong year, delayed reporting, a pending correction statement or an error in the ITR.

The safest approach is to reconcile Form 16/Form 16A, Form 26AS, AIS, TDS actually deducted and TDS claimed in the ITR before the return is processed.

If the deductor has made an error, request the deductor to correct the TDS statement. If the department has not considered an eligible tax credit during processing, the applicable tax-credit mismatch or rectification mechanism can be used.

Taxpayers should also be particularly careful in 2026 because of the transition from the old Income-tax Act framework to the new Income-tax Act, 2025 and the introduction of Form 168 for Tax Year 2026-27 onwards.