Reconciliation of TDS

Tax Glossary Definition

Reconciliation of TDS

Reconciliation of Tax Deducted at Source (TDS) involves verifying that the TDS claimed by the taxpayer matches the entries in Form 26AS, ensuring that the correct amount of tax is reflected in the Income Tax Return (ITR). This helps avoid mismatches and potential notices from the tax authorities.

Example: TDS of ₹6,000 on fixed deposit interest is shown in Form 26AS and should be matched while filing the ITR.

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