Every person deducting tax at source has to furnish the details of tax deducted by them to the IT Department. On the basis of the details of TDS provided by the deductor, the Income-tax Department will update Form 26AS of the deductee.
Often the actual amount of TDS and TDS credit as appearing in Form 26AS may differ and it may happen that the TDS credit appearing in Form 26AS may be less as compared to actual TDS, this may happen due to reasons like non-furnishing of TDS details to theIT Department by the deductor, deducting the tax in incorrect Permanent Account Number, etc. If a discrepancy is due to the deductor, then they may file the TDS/TCS correction statement and correct the same.
The Income-tax Department updates the TDS details in Form 26AS on basis of details provided by the person deducting the tax (i.e., the deductor), hence, if there is any default on the part of deductor like non -furnishing of TDS details (i.e., TDS return) to the Income-tax Department, deducting the tax in incorrect Permanents Account Number, etc. then Form 26AS will not reflect the actual TDS. The taxpayers are advised to confirm the tax credit appearing in Form 26AS and should reconcile the difference, if any.