TDS Deducted by Employer: How to Check, Reconcile & Claim Refund
Massive confusion exists among salaried employees about whether their employer has deposited the right TDS. Learn how to verify your TDS, reconcile mismatches, and claim refunds.
✓ Form 26AS & Form 168
TDS Reconciliation
Understanding Salary TDS
Under Section 192 (renamed to Section 392 under the Income-tax Act, 2025), employers are legally mandated to deduct Tax Deducted at Source (TDS) from your salary income based on your declared investment proof. However, merely seeing "TDS Deducted" on your monthly salary payslip does not mean the government has received it. Your employer must periodically file quarterly TDS returns and deposit the amount into the government treasury for you to get tax credit.
✓ Essential Pre-filing Reconciliation
Always reconcile the TDS reported in your salary Form 16 (Form 130) with the online entries in Form 26AS (Form 168) and AIS before submitting your ITR. Any mismatch will trigger automated tax demands.
How to Check if Your Employer Has Deposited TDS Online
You should verify that your tax deductions are credited to your PAN. Here are the steps to check TDS online:
Log in to the official Income Tax e-Filing portal (https://www.incometax.gov.in).
Go to e-File → Income Tax Returns → View Form 26AS.
You will be redirected to the TRACES portal. Select the Assessment Year (e.g., 2026-27 for FY 2025-26) and view the statement as HTML or download the PDF.
Scroll to Part A, which details tax deducted at source by employers. Check if the Tax Deduction Account Number (TAN) of your employer matches and the amounts match your payslips.
Alternatively, navigate to Services → Annual Information Statement (AIS). Download the Taxpayer Information Summary (TIS) which summarizes active tax credits.
Reconciliation is the process of matching TDS statements from different sources. Mismatches frequently occur due to administrative or technical slip-ups:
Verify PAN details: Ensure your employer has registered your correct 10-digit PAN. An incorrect PAN means TDS gets credited to a stranger's account.
Quarterly updates: Note that employers upload TDS quarterly. Q4 (Jan-March) details are typically processed and visible online by May 31. Do not file your ITR before this reconciliation.
Compare Form 16 (Form 130) with Form 26AS (Form 168): Cross-check Part A of Form 16 with the corresponding entries in Form 26AS. If the values differ, the tax department will only honor the lower of the two figures during ITR processing.
⚠ Resolving TDS Mismatches
If you identify a mismatch, the Income Tax Department cannot correct it. You must approach your employer’s HR or finance team and ask them to file a Revised TDS Return (Form 24Q or quarterly compliance return). Once corrected, the revised credits will automatically appear in your Form 26AS within 7-10 working days.
How to Claim Your Excess TDS Refund
If your employer has deducted more TDS than your actual tax liability (for example, if you submitted investment proofs late or had other tax deductions under Section 80C/123), you can claim a refund:
Calculate your net tax liability by summing up all income sources (salary, interest, capital gains) and applying eligible deductions.
File your ITR online (typically ITR-1 or ITR-2).
Ensure the TDS details are correctly imported from the portal database. If not, edit the TDS schedule manually to reflect the matching entries.
The system will automatically compute the Refund Due (Tax Paid minus Tax Payable).
Provide your validated bank account details (IFS Code, Account Number). Ensure your bank account is pre-validated and linked with your PAN.
E-verify your return using Aadhaar OTP. The refund will be credited directly to your bank account with applicable interest under Section 244A.
Estimate Your Exact Tax and Refund Instantly
Confused about your TDS deductions? Use our advanced, CA-verified salary tax calculator to cross-check your tax liability and see if you are due a refund.
You can check by logging into your e-Filing account and downloading Form 26AS (Form 168) or checking your Annual Information Statement (AIS) under the Services tab.
You must contact your employer's finance department. This usually happens if they filed their quarterly TDS return (Form 24Q or Form 138) late, entered a wrong PAN, or skipped your entry.
Yes, you can claim a refund by filing your Income Tax Return (ITR). If the TDS deducted exceeds your actual tax liability, the refund amount will be credited to your validated bank account.
Normally, once the ITR is e-verified and processed by the CPC under Section 143(1), refunds are credited within 15 to 45 days.