Actual Salary and Form 16 discrepancy

My father's organisation considers income from March of calendar year to Feb of next calendar year for the purpose of salary income of employees for form 16 purposes. My father has filed considering the income as per above income in f.y. 2021-22 and 2022-23. however, income in 2021-22 and 2022-23 were around 4.80 lakhs and shortfall in income considered is only 4k each year. But he retired in f.y. 2023-24 in the month of feb-24, and now his total income comes around to salary of 12 months of salary income, due to inclusion of march-23 salary in form 16, resulting in higher fig. in ais, 26as where in actuality it's only salary of 11 months. this has resulted in unnecessary tax on this year's income. the organisation is not co-operative as to revise the tds return on their end. how should I proceed. will I be able to resolve this issue with dept by just filling a response to the defective notice issued.
Replies (6)
Quick Summary
This discussion addresses a common issue where an individual's Form 16 shows a different salary figure than their actual earnings, leading to potential tax overpayments. The problem arises from the employer's method of calculating salary for Form 16 purposes, which included an extra month's salary in the final year of employment. Solutions discussed include filing the Income Tax Return (ITR) based on actual income, providing explanations to the tax department, and attempting to get the Annual Information Statement (AIS) corrected.

File ITR as per AIS report.
But I will have to pay unnecessary tax of rs. 25k
Then file Feedback in AIS after login. If accepted, good; otherwise no option.
The current form 16 contains a section in part A, where the summary of monthly salary considered is given, it's clearly visible over there that salary of march-23 is considered, I was thinking of using it as my base for replying to any notice that may arise. Will it be of any help? meanwhile, I will also try the AIS feedback option.

Without change in AIS for total salary, your ITR will be defective, if data altered. So, get it rectified first.

If your actual salary does not match Form 16, file based on actual income, not Form 16.

Form 16 is a TDS certificate, not a salary certificate. If your employer made an error (for example, a salary revision not reflected in the TDS computation, a bonus paid after the Form 16 cutoff, or a job change mid-year), the Form 16 figure will be wrong.

What to check:
- Download your AIS (Annual Information Statement) from incometax.gov.in. AIS typically shows income reported by your employer to the tax department, which may differ from Form 16.
- Cross-check with your salary slips and actual bank credits for the full year.
- If AIS also shows a lower figure, it likely reflects the employer reporting. You should still declare the correct actual salary in ITR.

If there is a genuine error in Form 16 (wrong amount), you can ask your employer to issue a revised Form 16. If they will not or cannot, file the correct figure in ITR with a note. The income tax portal will not reject the return just because it differs from Form 16 - any discrepancy gets flagged later by the system, not at filing.

For context on how TDS is deducted on salary and how mid-year job changes affect this, this [Section 192(2) TDS on salary guide](https://taxgarden.in/blog/section-192-2-tds-multiple-employer-job-change-india) covers how to reconcile TDS from multiple employers.

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