Customer Deducted TDS but It Is Missing from Form 26AS?

Start with the particular payment, not your entire tax reconciliation. Identify the invoice, the amount the customer says it settled, the bank receipt and the amount described as TDS. A short payment alone does not establish a tax deduction: ask the customer to separate TDS from retention, discounts, disputed charges or other adjustments.

Download the relevant Form 26AS through the official portal. Check that you are looking at the correct PAN and period, and search by the customer's deductor details rather than invoice wording alone. If the appropriate period or statement is unclear, ask your CA to confirm the current portal route.

A missing entry can have several causes on the customer's side, such as tax not deposited, a TDS statement not filed, or an incorrect PAN or amount in the statement. An empty entry therefore needs investigation; it does not establish which failure occurred.

Build one evidence pack for the affected payment, and raise the discrepancy with the customer promptly. Keep the original records together so the customer and your CA can trace the same transaction.

• ✓The invoice and any credit note or agreed adjustment affecting settlement.
• ✓The customer's payment advice or written confirmation identifying the amount withheld as TDS.
• ✓The bank entry showing the net receipt and its payment reference.
• ✓The TDS certificate, if issued, and the customer's deductor details shown on it.
• ✓The relevant Form 26AS download showing the missing or incorrect credit.
• ✓Your follow-up correspondence, including any filing or correction acknowledgement the customer supplies.

Treat these records as evidence to investigate, not as interchangeable proof. A payment advice records what the customer says it withheld. A deposit reference helps trace payment to the Government. Ask the customer to show how the deposit and filed statement relate to your PAN and deduction.

Send a focused request to the person handling TDS compliance. Identify the invoice, receipt and deduction, explain what is missing, and ask for a written status. Avoid a vague request to check all outstanding tax credits.

Ask for a named contact and an agreed follow-up point. If the reply only says that tax was paid, ask whether your deduction was included in the filed statement with the correct PAN. Depositing tax and filing the statement are separate steps.

The customer's response should determine the next request. The Department's Tax Credit Mismatch guidance directs taxpayers to the deductor where its TDS reporting needs correction. Ask for the action that addresses the identified issue rather than repeatedly requesting another certificate.

You can request correction of the customer's statement; you cannot make that correction by changing your own income-tax return. The Department's Tax Credit Mismatch FAQ tells the deductee to inform the deductor, which needs to file a revised TDS statement.

1. Obtain the customer's confirmation of the filing or correction and its outcome.
2. Download the relevant tax credit statement again instead of relying on an earlier copy.
3. Compare the deductor details, PAN, period and TDS amount with the evidence pack.
4. Ask your CA to review partial, duplicate or unexplained entries before treating them as settled.
5. Record what changed and retain the supporting correspondence with your filing records.

For a return already filed, the Department's Tax Credit Mismatch service compares credit reported in the return with credit reflected in Form 26AS. Its user manual explains how to inspect those differences. Use it to identify the remaining mismatch; a customer's correction acknowledgement alone should not close your follow-up.

Take the evidence pack to your CA before deciding the credit claim. Ask them to distinguish a reporting error from a disputed deduction or deposit failure, and to review the correct treatment of the related income. Do not choose a credit figure simply to make the return balance.

If you have already filed, provide the filed return, processing communication and any demand to your CA. A customer statement correction and a remedy concerning your own return are separate matters. Ask which procedure is available in your circumstances; do not assume a revised return or rectification request is always appropriate.

Escalate the evidence pack to the customer's finance lead and ask for a written explanation of the unresolved point. Keep the request factual: identify the deduction, previous replies and the action still needed.

The e-filing portal provides a grievance service for unresolved issues. Ask your CA which route fits the problem and what supporting records to submit. Keep the acknowledgement and continue tracking the customer's correction separately.

Do not leave the matter open indefinitely. Correction and remedy windows apply; confirm the current requirements on the official portal or with your CA. A follow-up email is not a substitute for an available statutory response.

• Calling every customer short payment TDS without written confirmation.
• Accepting a deposit screenshot without asking how it connects to your deduction.
• Treating a correction submission as proof that the credit now appears.
• Editing invoice income merely to remove a tax credit mismatch.
• Claiming disputed credit without professional review, or assuming missing credit automatically means paying the same tax again.
• Ignoring a processing communication while waiting for the customer to reply.

This workflow concerns TDS withheld by a customer from your receipts. GST input tax credit, tax you deduct from suppliers and your own advance-tax payments need separate checks. The related guides on TDS compliance for startups and MSMEs and the income-tax pre-filing document checklist provide the wider context.