TDS was deducted from my salary but is not showing in Form 26AS, what can I do

Question

My employer deducted TDS from my salary every month but when I check Form 26AS the credit is missing, and I am worried I will not get credit for tax already paid. Before I spend money on it, I want to know whether Income-tax Act, 1961, Section 200 gives me a remedy here and what proof I would need. Any Section numbers I can quote when I write to them would be useful.

MyVakeel Legal Desk · Accepted Answer

Income-tax Act, 1961, Section 200, Income-tax Act, 1961, Section 203 and Income-tax Act, 2025 is what decides this question in India. Read it alongside the provisions named, because the relief available to you turns on the facts you can prove on paper.

Section 200 of the Income-tax Act, 1961 obliges the deductor to deposit TDS with the government and file quarterly TDS returns; if the deductor has deducted tax but not deposited it or not filed the TDS return correctly, the credit will not appear in your Form 26AS or Annual Information Statement even though tax has been cut from your salary.

Section 203 requires the employer to issue Form 16 showing the TDS deducted, and this document, along with your salary slips, is strong evidence that tax was deducted at source even if it has not yet been reflected in the government's records, which is useful if the department later questions the credit claimed.

You are entitled to claim credit for TDS actually deducted from your income, and courts and the Central Board of Direct Taxes have recognised that an employee should not be penalised for an employer's failure to deposit tax, though in practice you may need to first raise the mismatch with the employer and, if unresolved, escalate through a written complaint to the jurisdictional TDS officer.

If the mismatch is not resolved before filing, you should file your return claiming only the TDS that reflects, disclose the discrepancy, and separately pursue recovery from the employer, since claiming un-reflected TDS credit can trigger a demand notice under Section 143(1) for the shortfall.

What to do next: 1) Compare Form 16 with Form 26AS and Annual Information Statement; 2) Raise the discrepancy in writing with the employer's payroll or finance team; 3) File a written complaint with the TDS assessing officer if unresolved; 4) File the return based on reflected credit and keep proof of deduction.

If you are unsure whether your facts fall inside Income-tax Act, 1961, Section 200, that is worth checking with an advocate before you commit to a route, because switching later costs time. You can post the details on the MyVakeel forum for a practising advocate to review, or book a paid consultation with a Bar Council verified lawyer in tax law.