TDS deducted from your salary, interest, rent or professional fees does not reach Form 26AS on the day it is deducted. It shows up only after the deductor has deposited the tax and filed the quarterly TDS statement, and the statement has been processed. When the credit is missing, or shows a smaller amount than your certificate, the fix almost always sits with the deductor, not with you. This guide explains why TDS goes missing, how to check where the problem is, and what you can and cannot do while you wait.
How TDS Reaches Your Form 26AS
TDS credit passes through three steps, and a gap at any of them keeps it out of your 26AS:
- Deduction and deposit: the deductor (employer, bank, tenant, client) deducts tax and deposits it with the government. The due date is the 7th of the following month, and 30 April for tax deducted in March (Rule 30, Income-tax Rules, 1962).
- Quarterly TDS statement: the deductor files Form 24Q (salary), 26Q (other resident payments) or 27Q (non-resident payments) quoting your PAN, the amount paid and the tax deducted. For FY 2025-26 the due dates are 31 July, 31 October, 31 January and 31 May (Rule 31A).
- Processing: the statement is processed by TRACES. The tax deposited is matched with the challan quoted in the statement, and the credit is booked against each deductee PAN.
Credit is allowed to you on the basis of the deductor's statement (Section 199 read with Rule 37BA). So even if your employer deducted tax every month, your 26AS for the April to June quarter may show nothing until the Q1 statement due on 31 July is filed and processed. A certificate (Form 16 or Form 16A) is generated from the same statement, so a genuine certificate downloaded from TRACES usually means the credit is already in 26AS.
From tax year 2026-27 (starting 1 April 2026) the Income-tax Act, 2025 applies and the forms change: Form 26Q becomes Form 140, Form 27Q becomes Form 144, Form 16A becomes Form 131 and Form 16 becomes Form 130. The process described here stays the same. For FY 2025-26 returns (AY 2026-27) you will still see the old form numbers.
Common Reasons TDS Is Missing or Short
1. The deductor has not filed the quarterly statement yet
This is the most common reason, especially for the last quarter, whose statement is due only on 31 May. If the deductor files late, your credit is delayed further. A late filer also pays a fee of Rs 200 per day under Section 234E, which is the deductor's problem, not yours.
2. Wrong or missing PAN in the statement
If the deductor quoted a wrong PAN, the credit goes to that PAN, or is not booked at all if the PAN is invalid. Check that the PAN you gave the deductor is correct and that your PAN is valid and linked with Aadhaar.
3. Challan mismatch
The deductor may have quoted wrong challan details, or deposited less tax than it reported. In Form 26AS the status of booking for such entries does not show as F (Final), and the credit may not be allowed until the deductor fixes the challan details or deposits the shortfall.
4. Wrong section, amount or year
The statement may show a different amount, a different section, or the payment in a different financial year from the one in which you received the income. The deductor has to correct it.
5. Tax deducted but not deposited
Sometimes the deductor deducts tax and never deposits it. You then have a payslip or certificate showing the deduction but no matching credit. See the separate section on Section 205 below.
How to Check Where the Problem Is
Step 1: Download Form 26AS and AIS
Log in to the e-filing portal at incometax.gov.in. Form 26AS opens through e-File, then Income Tax Returns, then View Form 26AS, which takes you to TRACES. The Annual Information Statement (AIS) is under the AIS menu. Choose the correct assessment year: for FY 2025-26 it is AY 2026-27. Our AIS guide for AY 2026-27 explains how to read it.
Step 2: Compare entry by entry
For each deductor, compare the TAN, amount paid, TDS amount and quarter in 26AS with your Form 16, Form 16A, salary slips, bank interest certificate or invoice records. Note the exact difference and the quarter it relates to.
Step 3: Check whether a certificate exists
Ask the deductor for the TDS certificate downloaded from TRACES. Form 16A for a quarter is due within 15 days of the due date of that quarter's statement, and Form 16 by 15 June after the year ends. A certificate generated from TRACES carries a unique number and should match 26AS. If the deductor gives you a self-made certificate instead, that is a sign the statement may not have been filed. Read more on downloading Form 16A from TRACES.
How to Get the Credit Fixed
Ask the deductor to file a correction statement
Only the deductor can file or correct a TDS statement. You cannot do it yourself. Write to the deductor with:
- Your name, PAN and the financial year and quarter
- The amount paid and the TDS shown in your certificate or payslip
- What 26AS currently shows
- A request to file the pending statement, or a correction statement on TRACES, with the right PAN, amount and challan details
Once the correction statement is processed, the credit appears in your 26AS, usually within a few days to a few weeks. Deductors can see how the correction process works in our guide to TDS return correction on TRACES.
Raise a grievance if the deductor does not respond
If the deductor ignores your request, you can file a grievance on the e-filing portal (Grievances menu) giving the deductor's TAN, the period and the amount. Keep copies of your correspondence and the evidence of deduction, such as payslips showing TDS, bank statements showing the net payment, or the deductor's ledger confirmation.
Where tax was deducted but not deposited: Section 205
Section 205 says that where tax has been deducted at source, the person whose income it was cannot be called upon to pay that tax again to the extent of the deduction. If a demand is raised on you because the deductor kept the money, reply to the demand on the e-filing portal, attach your proof of deduction, and ask for the demand to be dropped. The department can recover the tax, with interest, from the deductor. Our guide on TDS deducted but not deposited covers this in detail.
Filing Your ITR While the Credit Is Missing
The Centralised Processing Centre allows TDS credit as it appears in Form 26AS when it processes your return under Section 143(1). ITR forms do not accept attachments, so you cannot upload certificates or bank slips to support a claim that is not in 26AS. In practice:
- If the due date is far away: wait for the deductor's correction, then file with figures that match 26AS.
- If the due date is near: file on time. You can claim the TDS shown in your certificate, but expect the CPC to restrict it to 26AS and issue an intimation with a demand or a lower refund. The cleaner option is to claim what 26AS shows and file a revised return once the correction appears. For AY 2026-27 a revised return can be filed up to 31 March 2027.
- If an intimation has already cut your credit: once 26AS is corrected, file a rectification request under Section 154 on the e-filing portal so the credit is allowed.
Filing late only to wait for a correction is costly: the late fee under Section 234F is Rs 5,000 (Rs 1,000 if total income is up to Rs 5 lakh), plus interest under Section 234A on any tax due.
Income in one year, TDS in another
TDS credit is given for the year in which the related income is assessable (Rule 37BA(3)). If you offered income in an earlier year's return but the deductor deducted tax on it in a later year, you can apply in Form 71 on the e-filing portal under Section 155(20) for credit in the earlier year. The application must be made within two years from the end of the financial year in which the tax was deducted (Rule 134, notified by CBDT Notification 73/2023).
What Does Not Work
- Form 15G and Form 15H: these are declarations given to a payer at the start of the year so that TDS is not deducted at all, when your total income is below the taxable limit (15H is for resident individuals aged 60 or more). They cannot be used to claim TDS that has already been deducted.
- Attaching certificates to the ITR: the return has no place for attachments. The credit depends on the deductor's statement.
- Contacting the bank where the tax was paid: the bank only processes the challan. Corrections to the PAN or amount must come from the deductor's statement.
Checklist Before You File
- Downloaded Form 26AS and AIS for the right assessment year
- Collected Form 16, Form 16A and other TDS certificates, payslips and interest certificates
- Compared each deductor's TAN, amount and quarter with 26AS
- Written to every deductor whose entry is missing or short, asking for a correction statement
- Filed a grievance on the e-filing portal if a deductor does not respond
- Kept proof of deduction in case Section 205 needs to be invoked
- Decided whether to wait or file now and revise later, keeping the due date in mind
Sources: Income-tax Act, 1961, Sections 143(1), 154, 155(20), 199, 205, 234A, 234E and 234F; Income-tax Rules, 1962, Rules 30, 31, 31A, 37BA and 134 (Form 71, CBDT Notification 73/2023); e-filing portal (incometax.gov.in) and TRACES (tdscpc.gov.in); Income-tax Act, 2025 form mapping for tax year 2026-27. This article is general information, not advice on your specific case.
