TCS ON SALES WEF 01-10-2020

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This discussion clarifies confusion surrounding Tax Collected at Source (TCS) on sales tax invoices. It addresses whether TCS should be calculated on the taxable value before tax or the total invoice value including GST. Additionally, it provides a comprehensive guide on resolving mismatches in Form 26AS, detailing steps like verifying details, communicating with the deductor, and filing correction statements.

PARDEEP KAPIL

PARDEEP KAPIL (Querist)
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01 October 2020 DEAR SIRS :: THERE IS GREAT CONFUSION ON ADDING TCS ON TAX INVOICES....
(ONE GROUP SAYS ) IS THIS ON TAXABLE VALUE BEFORE TAX OR
(SECOND GROUP SAYS ) TCS SHOULD BE ON TOTAL VALUE OF INVOICE ( TAXABLE VALUE + GST )......

I ALSO HEARD THAT TCS ALSO REQUIRED TO BE DEDUCTED AND DEPOSITED ON AMOUNT RECEIVED FROM PARTIES WHERE SALES WERE MADE TO PARTIES PRIOR TO 30-09-2020 BUT WHO CROSSED 50 LAKHS SALES TILL 30-09-2020.... PLEASE CLARIFY... REGARDS

Sagar Patel

Sagar Patel (Expert)
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10 October 2020 TCS SHOULD BE ON TOTAL VALUE OF INVOICE ( TAXABLE VALUE + GST )

PARDEEP KAPIL

PARDEEP KAPIL (Querist)
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10 October 2020 Dear Sagar :: Good Afternoon... ! How to resolve issue of mismatch in annual 26 AS..... ?

Sagar Patel

Sagar Patel (Expert)
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10 October 2020 what's issue?

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)
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26 July 2025 Mismatch in Annual Form 26AS happens when the tax credit reflected in Form 26AS does not match with the actual TDS/TCS deposited by deductors or the income declared by the taxpayer.

Here’s how to resolve the mismatch:

### Steps to resolve mismatch in Annual 26AS:

1. **Check Details Carefully**

* Verify PAN details, deductor TAN, challan details, and TDS/TCS amounts.
* Sometimes mistakes in PAN/TAN or challan numbers cause mismatch.

2. **Communicate with Deductor/Collector**

* Contact the deductor (employer, client, bank, etc.) who deducted TDS or collected TCS.
* Ask them to verify if the deposited TDS/TCS matches the details they have reported to the IT department.
* If discrepancy is found, request the deductor to file a correction statement (TDS/TCS return correction).

3. **Correction Statement by Deductor**

* The deductor can submit a **correction statement** through the TIN-NSDL portal to rectify errors in the TDS/TCS return.
* Correction statements can be filed for a particular quarter/year.

4. **Verify Updated 26AS After Correction**

* After correction filing, wait for the IT department to update Form 26AS.
* It may take 1-2 weeks after correction statement filing.

5. **Filing Revised Income Tax Return (if required)**

* If mismatch is due to incorrect income or TDS reported in the original ITR, taxpayer can file a **revised return** with correct details.

6. **Dispute with Income Tax Department**

* If deductor refuses to correct or in case of complex mismatches, taxpayer can approach the Income Tax Department via:

* Online grievance portal ([https://pgportal.gov.in/](https://pgportal.gov.in/))
* Income Tax helpline or local IT office.

7. **Maintain Proper Records**

* Keep all TDS certificates (Form 16/16A), challans, payment receipts for cross-verification.

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### Common reasons for mismatch:

* Deductor has not deposited TDS but issued TDS certificate.
* PAN or TAN errors in TDS return.
* Delay in filing or processing of TDS returns.
* TCS collected but not reflected.
* Income or TDS wrongly reported in ITR.

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If you want, I can help you draft a communication mail to the deductor or guide you through the correction filing process. Would you like that?

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