Amount paid back to the employer is not reflected in Form 26AS

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An individual is experiencing an issue where the net amount repaid to their previous employer is not reflected in Form 26AS. This results in an inflated gross salary in Form 26AS and Form 16A, despite Form 16B showing the correct gross salary. The employer claims that negative entries for repayments are not shown in 26AS and advises filing the ITR based on Form 16B. The individual is seeking confirmation on the correctness of this advice and whether the employer is responsible for rectifying Form 26AS.

Anshul

Anshul (Querist)
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07 July 2022 Hi,
When I left my previous employer, I had to pay net amount back to the employer in the last month as part of the FnF settlement due to return of bonus amount and some TDS. Now, the amount that I paid back to the employer is not reflected in the Form 26AS. For the last month of my employment with the company, 26AS only reflects the TDS amount in the 'Amount paid/credited' due to which my gross salary is inflated as per 26AS.

The same issue is present in Form 16A. The Form 16B however shows the correct gross salary, so there is also a mismatch between 16A and 16B.

However, since I paid back the net amount, I think there should be a negative entry appearing in the 26AS for that particular month to reflect the correct gross salary.

I asked my previous employer to rectify the error in my 26AS and Form 16A, they said that they only show positive gross earnings and tax deducted in the 26AS and negative earnings(amount paid back) will not reflect. They have asked me to fill the ITR using Form 16B.

I want to confirm if whatever is being told to me is correct or not and if it's the responsisbilty of the employer to correct the 26AS by adding a negative entry in it? I'm concerened because even if Form-16B reflects correct gross salary, there will stillbe a mismatch between 26AS and the total salary in ITR. Kindly help and suggest, what should I do.

Thanks!

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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08 July 2022
File ITR based on 16b ignore 26AS.

Anshul

Anshul (Querist)
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09 July 2022 Thanks will do the same. However, if in future if I receive an intimation due to mismatch between 26AS and 16-partB. In that case what should I do?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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09 July 2022 You can reply as see 16b income no mismatch.

Anshul

Anshul (Querist)
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09 July 2022 Great! Thanks a lot sir!

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