Understanding the Differences Between ITR Form 16 and 26AS

Overview of ITR Form 16 and 26AS

ITR Form 16 and 26AS: For individuals employed in salaried positions, Form 16 is a crucial document for filing income tax returns (ITR). Companies are required to submit their e-TDS returns by the end of May each year, specifically by May 31. Subsequently, they must provide employees with Form 16 within 15 days, by June 15. Therefore, most employees should have received this form by now.

Form 16 serves as a certificate issued by the employer, detailing the amount of TDS (Tax Deducted at Source) deducted from your salary. In addition, there is another document known as Form 26AS, which also contains TDS information. Let’s explore the differences between these two forms.

Differences Between Form 16 and Form 26AS

Form 16 is specifically designed for salaried individuals, providing details solely about TDS deducted from their salary, and is issued by the employer. In contrast, Form 26AS is a government document that displays all tax details linked to your PAN, including TDS on salary, bank interest, and any advance tax or self-assessment tax you may have paid.

What to Check in Both Forms?

Here are some key checks to perform on both forms:

• First, verify that your PAN number matches on both forms to ensure there are no discrepancies.


• The salary income reported in both Form 16 and Form 26AS should be identical.


• The TDS amount shown in Form 16 should also appear in Form 26AS.

Details in Form 16 and Form 26AS

Form 16 will display all components of your salary received from the employer and the corresponding tax deducted. If you are under the old tax regime and receive allowances like HRA, LTA, or any tax-free benefits, these should also be reflected. If you haven’t provided your company with a rent agreement or rent receipts, they may deduct higher TDS.

In Form 26AS, ensure that TDS deducted from salary, bank interest, advance tax, and self-assessment tax are accurately recorded.

Form 16 should clearly show your name, PAN, employer details, salary breakdown, deductions, total tax, and taxable income. If you have worked for two or more companies in a year, review all Form 16s to avoid missing any income while filing your ITR.

What to Do If There Are Discrepancies?

If you find inconsistencies between Form 16 and Form 26AS, the first step is to contact your employer. There may be a possibility that they entered the PAN incorrectly, leading to TDS not appearing in Form 26AS. Alternatively, TDS may have been deducted but not deposited with the government, or there could have been incorrect reporting of salary. In such cases, the employer will need to refile their TDS return.

Importance of Reconciling Both Forms

When filing your ITR, it is essential that your income and TDS information is accurate and consistent. Any discrepancies could result in a notice from the income tax department regarding a 'defective return'.

Thus, reconciling Form 16 and Form 26AS is crucial for ensuring the accuracy and peace of mind in your tax filing process.