Reasons for mistakes in credit for tax payments or TDS

A major reason for difference in refund amount during processing is that the details of tax payment or TDS do not match with the data available with the Department. The critical checkpoints are as under:

  • Corresponding deduction of tax (TDS) on salary by all Employers should be correctly entered in Schedule TDS1 in ITR1 or Schedule TDS 1 for ITR 2.
  • TDS on salary should be entered in Schedule TDS1 ONLY and TDS on other Income should be entered in Schedule TDS 2 ONLY.
  • Tax deduction Account Number (TAN) of the Employer/Deductor is the unique identifier for matching TDS claims made against TDS reported by Employer/Deductor.The TAN number is mentioned on the Form 16 given by the Employer or on the Form 16A given by the Deductor. In case the TAN of the Employer/Deductor is not correctly mentioned, no matching is possible and TDS credit will not be given.
  • If the TAN has been correctly entered but the Employer/Deductor does not report the same TDS details to the Department, especially the taxpayer Permanent Account Number (PAN), then also the TDS cannot be matched. Therefore it is advised to check Form 26AS for the amount which has already been deposited by persons deducting tax on behalf of the taxpayer. Thereafter, the taxpayer should bring this fact in the notice of persons deducting tax so that they can act accordingly.
  • In case of Tax payments of Advance tax or Self Assessment tax, the PAN used to submit the tax challan to the bank should be the same as the PAN used to submit the return. Without a valid PAN the tax payment received from the bank would be in suspense and cannot be matched with tax payment claim as entered in the return.
  • While making the tax payment at the Bank, NO MISTAKE should be made in the challan while entering the PAN, Name, Major head (20 or 21), Assessment Year, Type of tax payment {advance tax (code 100), Self Assessment tax (code 300)}, tax applicable (Income tax other than companies).
  • Any tax payment made under code 400 corresponding to Tax on regular Assessment cannot be used for matching and accordingly credit cannot be given against advance tax or self assessment tax claims.
  • The Challan Identification Number (CIN) is the combination of BSR code (any bank branchs unique 7 digit identification number issued by RBI), date of deposit of challan (DD-MM-YY), and the running serial number of the challan, and is mentioned by the Bank while accepting tax payment on its seal. In case this is not clearly legible, the Bank can be requested to provide correct details. This must be entered correctly in the return while claiming credit.


6 thoughts on “Reasons for mistakes in credit for tax payments or TDS

  1. rajendra

    i have filled income tax return for my wife in 2009. no refund recived till date due to non deposition of TDS by employer, how it can b claimed now

    1. TDSMAN Post author

      Dear Sir,

      Ask your employer to file the return, after the amount is reflected in your tax statement you can claim for the refund.

      1. BHUVNESH

        Dear Sir,

        What happened, if Employer is not ready to correctly mention PAN No. and cannot ready to give Form 16 A ?

        What are the legal proceedings against Employer ?

  2. Ramesh Kumar Suri

    I have shown my combined income with my wife. The details of wife income has been mentioned with PAN Card details on Schedule SPI. The TDS of my wife has also been shown in the Shedule TDS2. The IT department has returned the e filed return not taking the TDS of my wife into account and asked for additional payment of IT and interest.
    Please let me know what I should do. Should I send the details of TDS 2 again under 151 ?
    Can I write to the IT department ?

    1. TDSMAN Post author

      Dear Sir,

      Please contact your Assessing Officer in this regard as he would be having the best knowledge about the mentioned subject.


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