What the statement shows
Form 26AS shows tax deducted or collected on your behalf, and other tax payments, against your PAN. The Annual Information Statement (AIS) gives a wider view of the information the department holds about you. When you file a return and claim credit for tax deducted, the credit is generally given on the basis of what is reflected there, so differences between that data and your books are worth resolving before you file.
Why differences arise
- Timing. The deductor reports late, or income is booked in one year while the deduction is reflected in another.
- Wrong PAN or TAN. A small error means the credit lands against someone else, or against no one.
- Different base. The amount on which tax was deducted can differ from the income you booked, for example because of how taxes are shown on an invoice.
- Missing deduction. The customer deducted tax, but has not reported it.
- Credit in the books but not in the statement. You recorded a deduction that was never reported.
- Bulk and part payments where a single entry covers several invoices.
A reliable process
- Download the statement and the AIS for the relevant year.
- Map each entry to the invoice or ledger line in your books.
- Classify every difference: matched, timing, not in the books, or in the books but not in the statement.
- Contact deductors about missing or wrong entries, and ask them to correct their filings where needed.
- Decide, with documentation, how each unresolved item will be treated in the return.
- Repeat before each filing and again at year-end.
Why it matters
Claiming credit that does not match the statement invites questions. Failing to claim credit you are entitled to costs real money. Either way, doing the work before filing is cheaper than doing it after a notice.
How we help
Our 26AS Recon tool compares the statement with your ledger, highlights unmatched TDS entries and produces a list for follow-up. We then review the exceptions and advise on treatment in the return.
Related service: 26AS Recon tool
Discuss this with usThis article is general information, not tax, legal or accounting advice. Laws, rules and positions change and depend on facts, so please take advice specific to your situation before acting.