A client’s TDS credit in Form 26AS or AIS is lower than the TDS shown on their certificates. How do you resolve it?
What the interviewer wants to hear
- Compares certificates, 26AS, AIS and books
- Identifies causes like wrong PAN, wrong quarter or deductor not filing
- Asks the deductor to file a correction return
- Claims only credit that appears to avoid mismatch notices
- Follows up and documents
Model answer
First I list TDS from every certificate, Form 16 or 16A, and from the client’s books, and compare it with Form 26AS and the AIS for the same year. I then find out why each difference exists. Common reasons are the deductor quoting a wrong PAN, reporting the deduction in a different quarter or year, not filing the TDS return, or depositing tax under the wrong section. The fix sits with the deductor, so I write to them with details and ask them to file a correction statement on TRACES. Meanwhile, I advise the client that the return processing system generally gives credit based on 26AS, so claiming more risks a mismatch and a demand. If the correction will come soon, we may wait before filing; if not, we claim what appears and follow up for rectification later. I keep the correspondence on file in case of a notice.
Can you answer it under time pressure?
Take a timed medium round and get scored on every answer.
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