Form 26AS vs Form 16 — how to reconcile before filing ITR

Form 26AS is the IT department's record of every TDS deducted against your PAN. Form 16 is your employer's statement. They must match — mismatches generate notices.

Quick answer: Always cross-check Form 16 (your employer's TDS certificate) against Form 26AS (the IT department's record of every rupee deducted against your PAN) before filing ITR. If they don't match, the IT system thinks you have outstanding tax — even if you don't. Mismatches generate Section 143(1) notices months later.

Why mismatches happen

Common reasons:

Employer deducted TDS but didn't deposit it on time. It shows in your Form 16 but not yet in 26AS.
Wrong PAN entered by employer. TDS goes to a different PAN's account; never reaches yours.
Bank deducted TDS on FD interest but you didn't know. Shows in 26AS, missing from your records.
Rent above ₹50k/month — tenant deducts 5% TDS that you never knew about.
Mutual fund SIPs from broker — exit-load TDS, capital gains TDS in 26AS.
Sale of property — buyer deducts 1% TDS u/s 194-IA.

What to do

Step 1: Download both:

Form 16 from your employer
Form 26AS from incometaxindiaefiling.gov.in (login → e-File → Income Tax Returns → View Form 26AS)
AIS (Annual Information Statement) — broader than 26AS, includes savings interest, dividends, large purchases

Step 2: Use the Form 26AS Reader to extract structured data from your PDF — saves manual reading.

Step 3: Cross-check:

Form 16 says	26AS should show
Total TDS deducted by employer	Same amount under Section A
Employer's TAN	Same TAN
Quarter-wise breakdown	Match each quarter's amount

Step 4: Find any TDS in 26AS NOT in Form 16:

Bank FDs (Section 194A)
Rent received over ₹50k/mo (194-IB)
Dividend (194)
Property sale (194-IA)
Professional fees received (194J)
Lottery / contest winnings (194B)

These are additional tax credits you can claim on ITR.

What if numbers don't match

Form 16 > 26AS: Employer didn't deposit TDS. Go to employer; they fix it via correction return. Wait 30 days; check 26AS again.

26AS > Form 16: Extra TDS deducted somewhere. Find the source (look at the deductor's name/TAN in 26AS). Add it to your ITR. Often increases your refund.

Both wrong: File Grievance on the IT portal under “e-Nivaran”. Takes 30-90 days to resolve.

Don't confuse Form 26AS with AIS

	Form 26AS	AIS
What	TDS / TCS / Refund / SFT	Everything 26AS + savings interest, dividends, capital gains, large transactions
Source	TRACES	IT department's annual statement
Use	Tax credit claim	Income disclosure

AIS is broader; some entries may be wrong (e.g. miscoded mutual fund redemptions). Verify against your actual records, not just blindly include in ITR.

After filing — Reconcile again

Even after filing ITR, the IT department may issue a 143(1) intimation 3-6 months later showing “tax demand” if there's a mismatch. Don't panic — it's usually fixable:

Check the demand calculation
Compare to your actual TDS / Tax paid figures
If wrong: file rectification request u/s 154 online

FAQ

Q. Where do I download Form 26AS? A. Login to incometaxindiaefiling.gov.in → My Account → View Form 26AS → Confirm → Redirected to TRACES → Choose AY → Download.

Q. Why is my 26AS showing transactions I didn't make? A. Possibly someone else's TDS deposit got tagged to your PAN by mistake. Common scenario: shared name with relative. File a grievance to remove.

Q. Should I file ITR if 26AS shows zero income? A. If your gross income is below ₹2.5L (basic exemption), no. If above, yes — even if 26AS is empty (you may have rental, freelance, dividend income not in 26AS).

Q. Does AIS replace 26AS? A. AIS supplements, doesn't replace. Form 26AS is still the official tax credit statement.

Q. How often is 26AS updated? A. After each quarterly TDS return filing by deductors. Final 26AS for an FY is usually stable by August of the following FY.