Stories
Form 26AS Mismatch: How Taxpayers Can Fix Incorrect Higher Income Reports
- •Taxpayers must regularly compare Form 26AS with bank statements, invoices, and books of accounts to identify any discrepancies or inflated income amounts reported by deductors.
- •If a mismatch is found where Form 26AS shows a higher amount than actual receipts, taxpayers should immediately communicate in writing with the deductor to request a correction statement.
- •When a deductor is unresponsive, taxpayers can raise a formal grievance through the Income Tax e-filing portal and preserve all transaction evidence like bank statements and agreements.
- •The Income Tax Department cannot make direct adjustments based solely on Form 26AS mismatches without conducting a proper inquiry and considering the taxpayer's response.
- •A recent ITAT Surat bench ruling highlights that taxpayers can successfully contest incorrect additions by demonstrating actual receipts and consistent reporting in subsequent assessment years.
Key Questions Answered
Taxpayers should first compare Form 26AS with bank statements, invoices, and books of accounts to identify the mismatch. Next, they should communicate in writing with the deductor and request them to verify the details and file a correction statement with the tax department. If the deductor is unresponsive, taxpayers can raise a grievance on the Income Tax e-filing portal while retaining proper documentary evidence.
If the deductor is unresponsive or unable to file a correction statement, taxpayers can raise a formal grievance through the Income Tax e-filing portal. It is essential to preserve supporting documents such as bank statements, invoices, agreements, and books of accounts to establish the correct transaction value and prove when the income was actually received.
No. From assessment year 2018-19 onwards, the Assessing Officer cannot make adjustments based on income appearing in Form 26AS without proper inquiry. The officer must first issue an intimation and carefully consider the taxpayer's response before making any adjustments to the reported income.
