Tax deducted under Sections 192 to 195 of theIncome Tax Act, typically by employers, necessitates issuance of a certificate (most commonly Form 16). This certificate provides the following details to the individual from whom tax was deducted:
- Confirmation of tax deduction
- Deducted amount
- Applicable tax rate
- Other relevant particulars (such as PAN details and challan information).
For individuals new to filingIncome Tax Returns (ITRs), Form 16 serves several crucial purposes:
Verification: It allowstaxpayers to verify if the deducted TDS aligns with the tax department’s records.
Tax filing: Form 16 is essential for ITR filing as it pre-fills income and TDS details.
Record-keeping: It acts as a comprehensive record ofTax Deducted at Source (TDS) deductions across the financial year.
Section 203 mandates the issuance of this certificate, ensuring transparency and accountability in the TDS for both taxpayers and the government.
Explaining the mismatch between pre-filled ITR and Form 16
Typically, the information in Form 16 should align with the prefilled ITR form since the income tax department uses data from Form 16 and similar documents for pre-population. Nevertheless, discrepancies may arise due to various reasons:
- Form 16 errors: Despite employers being required to issue accurate Form 16s, errors such as typos, incorrect calculations, or missing information can occur.
- Delayed processing: Occasionally, information from Form 16 may not be promptly uploaded to the Income Tax Department’s systems. This delay can result in a temporary mismatch until the data is fully processed.
- Non-standard Form 16: If your employer issues an outdated version of Form 16 or uses a non-standard format, the pre-filling software may not interpret it correctly.
- Taxpayer-claimed deductions: Deductions claimed by the taxpayer, such as those for investments or medical expenses, which are not reflected in Form 16, may not be included in the pre-filled ITR.
What to do in case of a mismatch?
While it’s uncommon, it’s prudent to remain vigilant and cross-check the information in both documents. If you find discrepancies between your Form 16 data and the pre-filled information in your ITR form, you may want to consider the following steps:
- Organise your documents: Maintain a record of all correspondence with your employer regarding the discrepancies and any steps taken to address them. This documentation could prove valuable in case of future inquiries from tax authorities.
- Form 16, issued by your employer, detailing your salary income, deductions, and TDS.
- Pre-filled ITR form available on the Income Tax Department’s website, containing income details automatically populated by the department from information provided by tax deductors.
- Review the details: Thoroughly examine both your Form 16 and the pre-filled sections of your ITR to pinpoint any discrepancies. Verify all figures meticulously, including
- Begin by verifying your PAN, name, address, and the deductor’s TAN on both documents.
- Compare the total salary income, allowances, and deductions recorded on Form 16 and the pre-filled ITRs.
- Pay close attention to the TDS amount and any provided challan details to ensure they match precisely between Form 16 and the pre-filled ITR.
If you find any mismatches in the information mentioned above, there might be an error. If needed, furnish the correct information and request the issuance of a revised Form 16.
Minor discrepancies, for example, a typo in your name, can often be corrected directly when filing your ITR online, as most platforms allow for edits. However, for more significant discrepancies (e.g., incorrect income amount or missing TDS details), additional steps will be necessary.
In rare instances, errors may occur in the pre-filled ITR. If you suspect inaccuracies and are unable to obtain a revised Form 16, you can utilise the Income Tax Department’s grievance redressal mechanism. However, in most cases, this step is not required.
Finally, if you feel uneasy about managing this on your own, it may be wise to seek guidance from a tax professional.
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Published: 18 Jun 2024, 04:42 PM IST
