ITR: Section 203 of the Income Tax Act mandates every person who deducts tax under relevant provisions of the IT Act to furnish to the person whose tax has been deducted a certificate stating that tax has been deducted and specifying the amount so deducted, the rate at which the tax has been deducted and other particulars as deemed necessary.
Where the tax has been deducted in accordance with provisions of section 192(1A), such certificate shall be provided in Form 16 by the employers to the employees on annual basis by 15 June of the financial year immediately following the financial year in which the income was paid and tax deducted.
Dr Suresh Surana, Founder, RSM India, says, “Considering the details as mentioned in Form 16 would be auto-populated in the income tax return of the taxpayer, it is usually unlikely that the data comprised in Form 16 and ITR prefilled ITR form will not match.” However, in case if you notice discrepancies between your Form 16 data and the pre-filled information in your Income Tax Return (ITR), Surana says one may consider the following:
Verify the Information: Carefully review both your Form 16 and the pre-filled details in your ITR to identify the specific areas where the discrepancies exist. Double-check all figures, including your income, deductions, and taxes paid. Taxpayers should verify his/her PAN with the one mentioned in the form, the accuracy of other personal details like name, address, deductor’s TAN, etc. and lastly cross check the tax-saving deductions and exemptions claimed by the taxpayer.
Communicate with your employer: If your Form 16 contains discrepancies, it’s essential to contact your employer or the concerned HR department to rectify any errors. If necessary, provide them with the correct information and request they issue a revised Form 16.
Update the pre-filled Information: Taxpayers can manually update the pre-filled information in their ITR to reflect the correct details. Most online tax filing platforms allow taxpayers to make changes to the pre-filled information before submitting their returns.
Keep documents ready: Keep records of all communications with your employer regarding the discrepancies and any actions taken to resolve them. This documentation may be helpful in case of any future inquiries from tax authorities.