Mismatch of salary income in form 16 & 26 AS

ITR 19796 views 7 replies

CA Mayank

180 Points Joined November 2008

Mismatch of Income between Form 16 & 26AS.

Now a days Form 16 Part A is Issued from Traces, hence Income & TDS on Salary will Match fronm 26AS.

But the income does not match with Form 16 Part B.

In ITR in Taxable Salary we will write income which comes after HRA, Conveyance allowance exemption & after deduction of Professional Tax say Rs. 12 lakh.

HRA, Conveyance Allowance exemption totals say Rs. 2 lakh.

So in Form 26AS & Form 16 Part A income should be shown Rs. 12 lakh not Rs. 14 lakh.

But it is shown in 26AS as Rs. 14 lakh.

Now while filling ITR income will be mention Rs 12 Lakh which during the online processing of Return will not match with 26AS & the demand will be raised for additional tax on Rs. 2 lakh which was claimed as HRA & Conveyance Allowance Exemption.

Should we ask the employerr to Rectify form 26AS or thereis any other solution ?

Replies (7)

Dipjyoti Majumdar

CA in service & CS. dipmaj@

3487 Points Joined June 2011

Your observation is correct. But the employer cannot report the net income from salary in its TDS return in 24Q which ultimately goes to 26AS. The annexure to 24Q also contains the net income after all exemptions/ deductiosn under section 10/16. So Dept is aware of the gross as well as net salary of an employee assessee.

ICAI should point this out to CBDT for addressal. i wpuld request you to write to the Chairman of Direct Taxes Committee of ICAI.

Regards,

ASHOK CHANDRA FULARA

Services

40 Points Joined February 2008

Solution is required to takle the present problem. The return will be processed online & immediate notice will be issued for demand according to the income shown in 26AS.

Writing to ICAI Direct Tax Chairman is not the immediate solution. Writing to him now, may give some useful results after 4 to 5 years but not today.

kuldeep yadav

student

27 Points Joined July 2009

WE FILE A INCOME TAX RETURN (ITR 1)ACCORDING TO FORM 16 SALARY AMOUNT WAS 1458030 AND TDS U/S 192 WAS 244530.AT THE TIME OF RETURN FILING 26AS ALSO MATCH WITH FORM16. BUT LATER ON WHEN RETURN WAS UNDER PROCESS AT CPC 26AS STARTED REFLECTING SALARY AMOUNT 1220650 AND TDS 204980. AND WE RECEIVED A DEMAND IN 143(1)INTIMATION OF RS 7460. NOW WHAT SHOUD WE HAVE TO DO . PLEASE SUGGEST US

pavankumarcma

B.Com ICWAI (CA FINAL) SAP Consulta

147 Points Joined November 2009

Hi,

As per your case, Income tax department is demanding additonal tax as they have considered old Form26 AS.

I will explain the case which is reverse to your situation:

At the time of filing return Form 26AS is showing 12,00,000 and you have paid the taxes, there is no due.
After filing when the return is under process Form 26AS is showing 14,00,000.

In this situration department will not leave you. They will issue 143(1) for additional tax as per the processed/revised Form 26AS.

Conclusion:

In your situation unneccesaarily department is demanding additional tax.
Instead, we do have right to get back the refund instead of paying tax as per 143(1).
As your revised Income is lower than the actual amount considered while filing the return

Regards,

Pavan Kumar Arvapally

Dinesh Mertiya

PROFESSIONAL

761 Points Joined December 2009

Dear Mayank,

Both form 16 and 26AS are showing your salary Rs. 14,00,000/- and TDS has been deducted accordingly.
This mistake has happened at the time of filing TDS return by your employer
it may be rectified by submitting of Correction Return of TDS by your employer
do not worry, you may request to your employer to rectify the mistake and thereafter actual figures will show in form 26AS automatically.

Dinesh Mertiya

PROFESSIONAL

761 Points Joined December 2009

Dear Kuldeep,

Your actual salary is Rs. 14,58,030 or Rs. 12,20,650 ????

Niranjan Mallan

2 Points Joined February 2019

My salary was low until March, my employer deducted TDS for the particular month. Now the situation is that My Form 16 Salary has whole 12 month aggregate but 26AS shows only the particular month salary for which TDS was deducted. How can I rectify this mismatch