Such cases appear many times when companies deduct TDS from employees' salaries but do not submit to the government. Most people do not know this, but if the TDS is deducted from the salaries and is not being deposited with the government, then there may be a mismatch in Form 16 and Form 26AS. You'll get deduction from your tax liability of TDS amount reflecting (which has been deposited by employer) on Income Tax website.
The Income Tax Department can send you a demand notice. The department can send you a notice in the case when the tax deducted from your salary and tax data deposited to department on your behalf does not match.
When does the company file TDS returns:
The company files a TDS return on a quarterly basis to the tax department. The last date for filing TDS returns for the company is one month after the expiry of the quarter. Therefore, the deadline for completing the TDS for the quarter ending June 30, 2018 will be 31 July 2018 and for the quarter ending March 31, 31st is the last date.
How to Check Mismatch:
Form 26AS is issued by the Income Tax Department. This would be an annual tax credit statement for that person who is eligible for TDS. This form can be viewed from the tax department's website. It is also important to look at this form as it will keep you informed that the taxable particulars of the salaried income, TDS collected, deposited and fixed income from the interest etc.
26AS reflects all types of receipts and tax deducted thereon not only from salary, it may be Interest Income, Professional Fees, Contractor Fees, Commission etc.
What is Form 26AS:
Form 26AS is a document that contains full information about the tax deduction (TDS) on the source from your salary. This is a tax credit statement which tells how much tax has been paid on your behalf to the Income Tax Department. You can download this form by logging in to your account at the Income Tax Department's website.
How to View Form 26AS:
1. To avail Form 26AS, log on to the Income Tax Department's website.
2. Go to "My Account" or "Quick Link" and click "View Form 26AS".
3. Select the assessment year (assessment year is next year of financial year)
4. The password will be requested to open this document and it's password will be your date of birth without any dot or comma or slash (e.g. if the DOB is 12 January 1960 then the password shall be 12011960). This should be consistent with the information recorded in the PAN card.
Note: Form 26AS may also be viewed through the Net Banking facility. Some banks also offer this form through Net Banking.