ITR
Employer short-deposited TDS for some months
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Facts
An unmatched or overbooked status often means the employer's challans did not cover all TDS reported, or challan details were wrong. The employer resolves it by correcting challan details or paying the shortfall with interest.
Provisions and law
- Sec 200(3), Income-tax Act 1961 (now Sec 397(3)(b))The deductor files quarterly TDS statements and can file correction statements to fix errors.
- Sec 201, Income-tax Act 1961 (now Sec 398)A deductor that does not pay TDS in full is in default and pays interest.
- Sec 205, Income-tax Act 1961You cannot be asked to pay tax yourself to the extent it was deducted from your income (2025 Act number to be confirmed).
Analysis
Show HR the 26AS entries with U or O status and the months. They can check their justification report on TRACES, which lists challan defaults. Once fixed, the status turns F and CPC gives credit. Since tax was deducted from you, Sec 205 protects you from paying again.
Conclusion
- List the months with U or O status.
- Share them with HR.
- Ask HR to check the TRACES justification report.
- Track the correction.
- Rectify your return once status is F.
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Form 26AS TDS mismatch: get the deductor to correct its TDS return
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