Form 16 Mismatch with ITR? Here's What To Do

Every year during tax filing season, millions of salaried taxpayers in India rely on the pre-filled details in their Income Tax Return forms. However, discrepancies sometimes arise when comparing the Form 16 issued by employers to the pre-filled data. So here are the steps to take when the discrepancies do take place.

What Should You Do When Form 16 Does Not Match ITR

Follow the instructions given below if your Form 16 does not match the Income Tax Return form.

• Verifying The Mismatch  

The first step is carefully comparing Form 16 with the ITR pre-filled form side by side. Look through each section like salary income, deductions, TDS amount etc. and note down fields where the data does not align.

 Double-check check personal details like name, PAN and employer details are accurate on both. Verify TDS certificates, Form 16 parts A and B thoroughly against ITR schedules. Spotting the precise areas of difference is key before reaching out to employers.

• Communicating With HR

If mismatches are found, promptly contact the company HR or payroll department and describe the discrepancies in detail. Referencing pay slips and other documents can help explain this clearly. 

Request them to re-examine the tax paperwork submitted and provide a revised Form 16 correcting inaccurate fields. Keep records of all correspondence. Employers are legally bound to issue accurate TDS certificates and rectify genuine errors on time.

• Updating The ITR Forms 

Once inaccuracies in Form 16 are acknowledged, taxpayers can manually update the pre-filled ITR with the right figures before filing returns. While doing this, ensure the TDS amount and income figure reconcile with Form 16 as per tax rules.

 Seek assistance from a Chartered Accountant if unsure about updating tax exemptions, deductions or reliefs. Most e-filing websites allow modifying pre-filled return data for truthful disclosure to the tax department. 

• Evidence For Future Reference

In rare cases where employers deny problems exist, taxpayers must continue corresponding and keep all proofs of communication, such as emails, letters as well as incorrect and updated TDS certificates. 

This serves as evidence in case the return is scrutinized and the taxpayer needs to justify differences. Having solid documentation ensures fair resolution of mismatches without undue tax burden.

Conclusion

Though Form 16 and ITR pre-filled data should correspond each year, discrepancies do occur. The key is verifying information thoroughly, promptly informing employers to correct errors, updating returns carefully and retaining records as a safeguard. 

Taking timely action helps file accurate tax returns facing no issues from authorities due to inaccuracies beyond one's control. With diligence and cooperation from both sides, resolving mismatches need not become a long-drawn problem.

For more queries related to ITR, visit the official website here. To register a complaint, call 1800 103 0025 or 1800 419 0025.