TDS, Form 26AS and AIS Explained: How to Check, Match, and Claim Your Income Tax Refund

Yogita Shinde earned ₹7,00,000 a year as an executive in a pharmaceutical company. Every month, her employer cut some tax from her salary. She never looked at the number. She believed that handling the matter was the company’s responsibility.. They know what they are doing.”

After filing her return, she expected a refund of about ₹14,000. Weeks passed. Then months. Nothing came. When she finally logged in to the income tax portal, she found two problems. Her bank account was not validated (checked and linked) on the portal, and her return was never e-verified. The refund was sitting there, but it could not reach her.

On top of that, she found out something else. Her employer had cut more tax than needed, because she had submitted her investment proofs after the deadline. She had paid extra tax for a full year without knowing it.

Nothing was wrong with the law. Nothing was wrong with her income. She simply did not understand three small things: TDS, Form 26AS, and AIS.

I am Bhanu Pratap Singh, and I see this every tax season. People work hard for their money, but they leave the “tax paperwork” to others, and then lose months or even money. This guide explains TDS, Form 26AS, and AIS in plain words, so you can check your tax, fix mistakes, and get your refund on time.

What is TDS? A Simple Explanation

TDS means Tax Deducted at Source. Under this arrangement, the person or organisation making a payment deducts a portion of the amount as tax and submits it directly to the government for you.. The person who cuts the tax is called the “deductor”, and you are the “deductee”.

Think of it like this. Instead of waiting for you to pay all your tax at the end of the year, the government collects it in small parts, while the money is being paid to you.

Where does TDS happen?

Rates and limits change. I have not written fixed numbers for most of them, because a wrong number is worse than no number. Always confirm the current rate on the Income Tax Department website.

An important point

TDS is simply a way of collecting your tax in advance, not an additional tax on your income. When the tax deducted exceeds your actual liability, you can claim the excess amount as a refund. However, if the deduction falls short of the tax you owe, you must pay the remaining amount.

Form 16, Form 16A, Form 26AS and AIS: What is the Difference?

This is where most people get confused. Here is a simple table.

The one-line difference

• Form 16 is what your employer says.
• Form 26AS is what the government has recorded as your tax credit.
• AIS is what the government knows about your income and financial activity.

Your income tax return should agree with all three. If it does not, you may get a notice.

How to Check Form 26AS and AIS: Step by Step

Both documents are free and available on the official e-filing portal of the Income Tax Department. Visit the Income Tax Department’s e-Filing Portal to access the service.

Menu names on the portal can change slightly, but the steps stay almost the same.

To check Form 26AS

1. Log in with your PAN and password
2. Go to the “e-File” menu and open the section for Income Tax Returns
3. Choose “View Form 26AS”, which takes you to the TRACES website
4. Select the financial year and view the statement

You can also visit TRACES, the official TDS portal of the department, to see your TDS credits and download certificates.

To check AIS

1. Log in to the e-filing portal
2. Open the “Services” menu and choose “Annual Information Statement (AIS)”
3. Download the AIS and TIS for the year you need

What to look at

• Your TDS amounts and the names of the deductors
• Your salary, interest, and dividend amounts
• Sale of shares and mutual funds
• Any transaction you do not remember

Real Example: Sanjeev Taneja’s Missing Salary

Sanjeev Taneja changed his job in the middle of a financial year. He worked in Company A until August and then in Company B from September. When he filed his return, he used only the Form 16 from Company B, because Company A’s HR was slow, and he forgot about it.

Later, the department’s system compared his return with his AIS. The AIS showed ₹3,80,000 as salary from Company A, which he had not added. He got a notice, with extra tax and interest to pay, and had to file a revised return. He spent weeks on something he could have avoided in half an hour.

If you change jobs, collect Form 16 from every employer, and match all of them with your AIS. To understand how the filing process works from start to end, read Income Tax Return Filing: Complete Step-by-Step Guide for Salaried Employees.

How to Match Your TDS: The 5-Minute Check

Before you file your return, do this simple check. I call it the “three-paper check”.

Step 1: Open your Form 16 and note the TDS amount.

Step 2: Open Form 26AS and look at the TDS credit against the same employer. The two amounts should be the same.

Step 3: Open AIS and check your total income. Salary, interest, dividends, and other income should match your own records.

Step 4: Compare with your bank statements and investment statements.

Step 5: If something does not match, fix it before filing.

Real Example: Madhavi Rao’s Quiet Catch

Madhavi Rao, a school teacher, found that her Form 26AS showed ₹6,000 less TDS than her Form 16. Her school had cut the tax from her salary but had not deposited the full amount. If she had filed her return and claimed the Form 16 amount, the system would have shown a mismatch, and her refund would have been reduced or held.

She told the school office. The school corrected its TDS return, and a few weeks later her 26AS showed the right amount. Because she checked before filing, she lost nothing.

Why Your TDS May Be Missing or Wrong, and How to Fix It

Sometimes the TDS shown in Form 16 does not appear in Form 26AS. This does not always mean your employer is dishonest. Common reasons are:

• Wrong PAN: The deductor typed your PAN incorrectly
• Delay in filing the TDS return: The deductor has not yet reported the deduction
• Wrong quarter or year: The amount is shown in another period
• TDS deducted but not deposited: This is serious, and you should push the deductor to deposit it
• Name mismatch or old details: Your name or PAN details do not match the department’s records

What to do

1. Ask the deductor (your employer, bank, or client) to check and file a correction statement
2. Give them your correct PAN and proof of deduction, such as the Form 16 or Form 16A
3. Keep a written record of your request
4. Check Form 26AS again after a few weeks

A caution: Do not claim credit for TDS that does not appear in your Form 26AS. Credit is given only for the TDS that the department has recorded.

AIS Feedback: What if the Information is Wrong?

AIS sometimes shows information that is wrong or duplicated. For example, the same interest may appear twice, or a transaction may belong to someone else. You can give feedback on the portal. For each entry, you can select options such as “information is correct”, “information is partially correct”, or “information is not related to me”.

Real Example: Naresh Goyal’s Duplicate Interest

Naresh Goyal found his FD interest listed twice in his AIS: once by the bank branch and once by the head office. If he had accepted it, his return would have shown double income. He gave feedback, attached his bank’s interest certificate, and the entry was marked as a duplicate.

Always keep your own records, such as bank statements and interest certificates. They are your proof if there is a difference.

Form 15G and Form 15H: Stopping Unnecessary TDS

Many people have TDS cut on income that is not even taxable for them. Here is how to avoid that.

• Form 15G: For individuals below 60 years whose total income is below the taxable limit
• Form 15H: For senior citizens (60 years or above) whose total income is below the taxable limit

You give this form to the bank at the start of the financial year, and the bank does not deduct TDS on your interest. Remember, you must still declare the interest in your return. Also, giving a wrong declaration can be a legal problem, so use these forms only when you are truly eligible.

Real Example: Bharti Lamba’s Tax-Free Pension Year

Bharti Lamba, a retired nurse, had a small pension and some FD interest. Her total income was below the taxable limit. Because she gave Form 15H to her bank every April, no TDS was cut, and she did not need to wait for refunds. She also filed her return every year, to keep her records clean.

For how FD interest is taxed and how banks apply TDS, read Fixed Deposit Guide: Interest Rates, Tax on FD, TDS, and Smart Ways to Earn More. If you are a retired person with savings in a government scheme, Senior Citizen Savings Scheme: Interest Rate, Eligibility, Tax Rules, and How to Open an Account explains the TDS rules for that scheme.

When TDS is Not Enough: Advance Tax and Balance Payment

TDS is often lower than your real tax. This happens when you earn interest, rent, or freelance income.

Real Example: Pankaj Dalal’s FD Surprise

Pankaj Dalal earns in the 30% tax slab. In one year, he earned ₹1,20,000 as FD interest. Suppose the banks cut 10% TDS, which is ₹12,000. But his real tax on that interest at 30% is ₹36,000, plus cess. He had to pay the balance of about ₹24,000, plus cess, himself.

If your total tax after TDS is more than ₹10,000 in a year, the law expects you to pay advance tax in instalments during the year. If you do not, you may have to pay interest. The exact dates and rules can be checked on the Income Tax Department website.

What you can do

• Estimate your total income early in the year
• Add up the TDS expected
• Pay the balance as advance tax, or at least before filing your return, as self-assessment tax
• Keep the challan (payment receipt)

Your own tax estimate should also fit into your monthly plan. Personal Budgeting: The 50-30-20 Rule and How to Actually Stick to It shows a simple way to set aside money for tax and other regular needs.

TDS for Freelancers and Professionals: GST and Fees

If you are a freelancer, consultant, or professional, your clients may cut TDS on your fees. This is the part freelancers often misunderstand, especially when GST is involved.

Real Example: Rupesh Jadhav’s Invoice

Rupesh Jadhav, a freelance video editor, raised an invoice like this:

• Fee: ₹1,00,000
• GST at 18%: ₹18,000
• Total invoice: ₹1,18,000

His client deducted 10% TDS. As per a clarification issued by the tax department, when GST is shown separately in the invoice, TDS is deducted on the fee only, not on the GST. So the TDS was ₹10,000 on ₹1,00,000, and the client paid him ₹1,08,000.

If the invoice does not show GST separately, the TDS may be calculated on the full amount, which reduces your payment more. So always show GST clearly.

To calculate the GST part of any invoice quickly, you can use the GST Calculator on this site. For registration, filing, and common mistakes, read GST for Freelancers and Small Business Owners: Registration, Filing, and the Mistakes That Cost Money.

Ask for Form 16A

When a client deducts TDS, ask for Form 16A, and check that the TDS appears in your Form 26AS. If it does not, the client has not deposited it, and you cannot claim it.

TDS on Property: What Buyers and Sellers Should Know

When someone buys a property above a certain value from a resident seller, the buyer has to deduct a small percentage of the price as TDS, and deposit it with the government, before paying the full amount to the seller. The buyer uses a form called 26QB for this.

Why this matters for you

• If you are a buyer: Do not forget this step. A missed TDS can create penalties and interest for you
• If you are a seller: The TDS will show in your Form 26AS under your PAN, and you can use it as credit against the capital gains tax you owe

Real Example: Imtiaz Siddiqui’s Property Sale

Imtiaz Siddiqui sold a flat and received the sale price after the buyer had deducted TDS. He noticed that the TDS was not visible in his Form 26AS, because the buyer had entered a wrong PAN in the form. He asked the buyer to correct it, and the credit appeared a few weeks later. Without it, he would have paid the same tax twice.

For how the gain on a property sale is calculated and how exemptions work, read Capital Gains Tax in India: Short-Term vs Long-Term Rates, Exemptions, and How to Calculate It. And if you are buying with a loan, Home Loan Guide: Interest Rates, Tax Benefits, and the Decisions That Save Lakhs covers the other side of the purchase.

How to Claim Your Income Tax Refund: Step-by-Step

A refund is simply your excess tax coming back. Here is the process.

Step 1: Match your TDS with Form 26AS

As explained above, do this before filing.

Step 2: File your return correctly

Show all your income, deductions, and TDS, and choose the right tax regime. The filing steps are explained in Income Tax Return Filing: Complete Step-by-Step Guide for Salaried Employees.

Step 3: Validate your bank account

On the e-filing portal, add your bank account in your profile and complete the validation. Refunds are credited only to a validated account that is linked with your PAN.

Step 4: E-verify your return

Filing is not enough. You must e-verify your return within the time limit set by the department (currently 30 days from filing; confirm on the portal). Common ways are Aadhaar OTP, net banking, or a bank-linked option. An unverified return is treated as not filed.

Step 5: Wait for processing

After verification, the department processes your return and sends you an intimation. If a refund is due, it is credited to your bank account.

Step 6: Track your refund

On the portal, you can check the status of your return and refund. If the refund is delayed, check for messages from the department, because they may be waiting for a response from you.

Interest on delayed refunds

If the refund comes after the due period, the law provides for interest on it. The rate and rules are set by the Income Tax Act, so check the current rule on the department website.

Real Example: Yogita Shinde’s Fix

Going back to Yogita Shinde, she validated her bank account, e-verified her return, and her refund of about ₹14,000 reached her a few weeks later. The next April, she submitted her investment and rent proofs to her employer on time, so that the employer deducted the right TDS, and she did not give the government an interest-free loan again.

What to do with a refund

A refund is your own money, not a bonus. Use it for something useful, such as clearing a small debt, or topping up your emergency fund or your SIP. To see what a monthly investment could become over time, try the SIP Calculator.

Intimation Under Section 143(1): Read It Carefully

After your return is processed, the department sends a message called an intimation under Section 143(1). It shows how the department calculated your tax, compared with how you calculated it.

There are three possible outcomes

1. No change: Your numbers match, and there is nothing to pay or receive, or the refund is as you expected
2. Refund: The department confirms a refund
3. Demand: The department says you owe more tax

If you do not agree

• Check the reason, which is often a mismatch with Form 26AS or AIS
• If the department made an error, you can file a rectification request
• If you made an error, you may need to file a revised return, within the time allowed by law
• If you agree, pay the demand and keep the challan

Never ignore an intimation. A small demand can become a bigger one with interest if you wait. For the larger picture of notices and their causes, always consult a Chartered Accountant if the amount is big.

Refund Frauds: Do Not Click That Link

Every tax season, fraudsters send messages like “Your income tax refund of ₹xx,xxx is approved. Click here to claim”, or call and ask for your bank details and OTP.

Remember

• The department does not ask you to share your card number, PIN, or OTP through a link in an SMS or email
• Always visit the official portal by typing the web address yourself
• If you are not sure, do not click

Real Example: Kalpana Bisht’s Close Call

Kalpana Bisht received an SMS saying her refund was waiting and asking her to “verify” her debit card. She remembered that she had not even filed her return yet, so she ignored the message. A colleague who clicked lost ₹48,000 from her account within minutes.

If you ever face such a fraud, report it quickly at the National Cyber Crime Reporting Portal, and call your bank at once. For the full list of precautions, read Digital Banking Safety: 5 Critical Rules to Protect Your Money from Online Fraud and Cyber Theft.

Common TDS and Refund Mistakes to Avoid

Mistake 1: Never checking Form 26AS or AIS. This is how Sanjeev Taneja got a notice.

Mistake 2: Filing without matching TDS. A mismatch can reduce or delay your refund.

Mistake 3: Not e-verifying the return. Your return is not complete until it is verified.

Mistake 4: Not validating your bank account. The refund cannot be paid.

Mistake 5: Submitting investment proofs late to the employer. You pay extra TDS, and wait for a refund.

Mistake 6: Forgetting income that had no TDS. Savings interest, rent, and side income must still be declared.

Mistake 7: Using Form 15G or 15H wrongly. Use it only if you are truly eligible.

Mistake 8: Ignoring advance tax. This can lead to interest.

Mistake 9: Clicking refund links in SMS or email. Use only the official portal.

Mistake 10: Not keeping records. Keep Form 16, Form 16A, interest certificates, and challans for many years.

Frequently Asked Questions About TDS, Form 26AS and AIS

What is TDS in simple words?
It is tax cut in advance by the person who pays you, and deposited with the government in your name.

What is the difference between Form 26AS and AIS?
Form 26AS mainly shows tax credits such as TDS and advance tax. AIS shows a wider set of your income and financial transactions.

How do I check TDS credit?
Log in to the e-filing portal and view Form 26AS and AIS for the financial year.

Why is my TDS not showing in Form 26AS?
The deductor may have used a wrong PAN, filed the TDS return late, or not deposited the tax. Ask them to correct it.

How long does an income tax refund take?
It usually takes some weeks after e-verification and processing, but there is no guaranteed fixed date. Check the portal for status.

Why has my refund not come?
Common reasons are an unverified return, a bank account that is not validated, a mismatch in details, or a pending response to the department.

Can I claim TDS if it is not in Form 26AS?
No. Credit is given only for TDS that the department has recorded.

Should I file a return if my income is below the taxable limit?
It is often a good idea, especially if TDS was cut and you want a refund. Check the rules for your case, or ask a CA.

Can I stop TDS on my FD interest?
If you are eligible, you can submit Form 15G or 15H to the bank. You must still declare the income.

What if I find a mistake after filing my return?
You may be able to file a revised return within the time limit allowed by law.

A Practical Checklist Before You File

□ Do I have Form 16 from every employer for the year?
□ Have I downloaded and checked Form 26AS?
□ Have I downloaded and checked AIS and TIS?
□ Does the TDS in my Form 16 match my Form 26AS?
□ Have I added all income, including savings interest, FD interest, and side income?
□ Have I given feedback on any wrong entry in AIS?
□ Have I validated my bank account on the portal?
□ Have I planned to e-verify the return right after filing?
□ Have I checked whether I need to pay advance tax or balance tax?
□ Have I saved copies of all documents and challans?

Conclusion: Your Tax Credit Belongs to You

Yogita Shinde now checks her Form 26AS every year before filing, and she submits her proofs to her employer in time. “I used to feel tax was something that happens to me,” she told me. “Now I feel it is something I can manage.”

I am Bhanu Pratap Singh, and my advice is simple. TDS is your money, paid in advance. Form 26AS and AIS are the department’s record of it. If you take thirty minutes every year to match them with your own papers, you can avoid notices, save time, and get your refund without chasing anyone.

Do it today. Download your Form 26AS and AIS, and compare them with your Form 16 and bank statements. If anything looks wrong, fix it now, not after a notice arrives.

For rules, forms, and the latest limits, always check the official Income Tax Department website.

Disclaimer

This article is provided for general educational and informational purposes only and should not be considered professional tax, legal, or financial advice. TDS rates, thresholds, due dates, portal menus, and procedures change through budgets and notifications. The examples are illustrative, with rounded figures, and your actual tax will depend on your income, deductions, and the rules in force. Before filing a return or responding to a notice, please verify current rules on the official Income Tax Department website and consult a qualified Chartered Accountant for advice specific to your situation. Bhanu Pratap Singh and the author do not provide personalized tax advice for individual circumstances.