TDS Reconciliation: Why Your Books and Form 26AS Disagree

A mismatch between TDS credits in your books and Form 26AS is rarely fraud and almost always process: timing, mapping, or a deductor's error.

The usual suspects

1. Timing differences — income booked in March, TDS deposited by the deductor in April against the next year.
2. TAN mapping quirks — group entities deducting under a different TAN than the one you invoice.
3. Section mismatches — payment deducted under 194J when your books expect 194C, changing the rate and the reconciliation line.
4. Deductor defaults — tax deducted from you but never deposited or reported.

A systematic close

• Reconcile party-wise, not total-wise — totals can match while parties are wrong.
• Maintain a party-to-TAN map and update it every quarter.
• Chase deductor corrections before filing, not after the CPC notice arrives.

The firm runs multi-year books-versus-26AS reconciliations as a standing engagement for corporate clients.