Taxpayers seeing income discrepancies should note that Form 26AS has been renumbered to Form 168 as of April 1, 2026. Recent judicial rulings confirm that authorities cannot treat these figures as final without proper inquiry if the taxpayer provides proof. This guide explains how to reconcile your records and resolve reporting errors.
Taxpayers should be aware that the document formerly known as Form 26AS has been renumbered as Form 168 under the Income Tax Act, 2025, effective April 1, 2026. While the name has changed, the core function remains the same: it serves as a consolidated statement of your tax credits, including tax deducted at source, tax collected at source, and advance or self-assessment taxes paid.
Discrepancies often arise when the income reported in Form 168 does not match the actual amounts received by the taxpayer. These errors are frequently caused by mistakes on the part of the deductor, such as entering an incorrect PAN, filing the TDS return late, or reporting the transaction in the wrong financial year. When these mismatches occur, they can trigger automated tax notices under sections like 143(1) or 139(9), which can delay income tax refunds or lead to unnecessary scrutiny.
The Importance of Legal Precedent
A recent ruling by the Income Tax Appellate Tribunal (ITAT) provides a clear defense for taxpayers in these situations. In a case involving a significant difference between reported and actual transaction values, the tribunal ruled that the Income Tax Department cannot treat the figures in Form 168 as definitive proof of income without performing an inquiry. The authority must allow the taxpayer to provide evidence, such as bank statements, invoices, and signed agreements, to justify the actual income earned. This confirms that taxpayers are not helpless when faced with erroneous data.
Steps for Resolution
When a mismatch is identified, the first step is to reconcile the data in Form 168 against the Annual Information Statement (AIS) and personal financial records. If a discrepancy is found, the most effective resolution is to contact the entity that deducted the tax and request them to file a revised TDS statement via the TRACES portal. This forces the deductor to correct their filing, which subsequently updates the taxpayer's record.
If the deductor is unresponsive, taxpayers can submit a grievance directly through the official Income Tax e-filing portal. Throughout this process, it is essential to maintain a clear paper trail, including all correspondence with the deductor and relevant financial documents. Ignoring these mismatches carries the risk of tax demands or penalty proceedings, so active monitoring of both Form 168 and AIS remains a practical step for ensuring a smooth tax filing process.