Received a TDS mismatch notice? It could be an error—here's how to resolve it

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Tech professional Samir (name changed) was shocked to receive a tax demand of about ₹1.98 lakh related to his income tax return (ITR) filed for the assessment year 2024-25. 

According to the intimation 143(1) sent to him, the tax deducted at source or TDS on his salary reported in his form 26AS is higher than the actual TDS credited to the tax department.

“The intimation says about ₹1.76 lakh is the outstanding TDS I’m required to pay. On top of it, the department has levied interest of about ₹22,000," he said on condition of anonymity. 

This taxpayer is not a standalone case, as several of his colleagues have received similar intimations. Four chartered accountants Mint spoke to confirmed that some of their clients, too, have received TDS mismatch intimations demanding additional tax. 

Also Read: There's been a surge in income tax notices. Here's why, and how to respond.

Intimation sent to another taxpayer reviewed by Mint shows a tax demand of ₹2.14 lakh. “My form 16 is showing TDS of ₹9.39 lakh, whereas the intimation says their (IT department) records show ₹7.24 lakh TDS, which is resulting in this mismatch," the assessee said on the condition of anonymity. 

It could be a case of erroneous tax notices as the source of TDS information in Form 26AS and tax department’s records is the same.

“Information in the Form 26AS as well the IT department’s record is based on the details reported by employers or other TDS deductors. The information should be the same at both the places, which is strangely not the case in these cases," said Prakash Hegde, a chartered accountant and principal consultant of direct taxation at Acer Tax & Corporate Services LLP. “It should be noted that in all these mismatch intimations the TDS with