Your client's payment arrives short, exactly the amount you expected after TDS, so you don't think twice about it. Months later, filing your return, you check Form 26AS to claim that TDS credit, and it isn't there. The client definitely deducted the tax, your invoice and bank statement both show the shortfall, but the government has no record of it. This is a genuinely different problem from a missing Form 16A certificate, and it needs a different, more specific response.
Here is what it actually means when deducted TDS doesn't show up in Form 26AS, why you are not the one on the hook for it, and the specific steps to actually resolve it.
A 26AS mismatch means the client either didn't deposit the tax or didn't file their TDS return
When a client deducts TDS from your payment, they are legally required to deposit that amount with the government and file a quarterly TDS return (Form 24Q or 26Q depending on the payment type) reporting it against your PAN. Form 26AS is populated from that filed return, so if the deduction never shows up there, one of two things happened on the client's end: they deducted the money but never actually deposited it, or they deposited it but never filed the return correctly linking it to your PAN.
Both are failures on the deductor's side, not something that happened because of anything you did or didn't do, which matters for what comes next. This is a different classification question entirely from whether the correct TDS rate was even applied in the first place, see the guide on whether your client is deducting TDS under the wrong section for that separate issue.
You are not held liable for a client's failure to deposit or file correctly
Income tax guidance and established practice are clear on this specific point: a taxpayer is not penalized for a deductor's failure to properly deposit or report TDS, the obligation and the liability for that failure sit with the person who deducted the tax, not the person it was deducted from. This is worth knowing clearly, since the instinct when you can't claim a credit you're owed is to assume you've done something wrong, when the actual problem is entirely on the other side.
That said, "not liable" does not mean the credit shows up automatically, you still need to actively chase the documentation to actually claim it.
How to actually resolve a 26AS mismatch
First, confirm the mismatch is real by comparing your Form 16A (if issued) against Form 26AS line by line, checking the amount, the deduction date, and the tax head, since sometimes a mismatch is just a reporting delay rather than a genuine failure to file. If the mismatch persists past a reasonable filing-cycle delay, request the specific challan number and BSR code from the client's accounts team, which proves whether the tax was actually deposited at all, and ask directly whether their TDS return for that quarter has been filed and correctly includes your PAN.
If the client cannot or will not produce this information, escalate through the TRACES portal (the government's TDS reconciliation system) by raising a grievance, which creates a formal record of the discrepancy, useful both for resolving the specific credit and as documentation if the pattern repeats with that client.
This is a slower-moving problem than a missing certificate, plan accordingly
Unlike a missing Form 16A, which a client can often issue the same week once reminded, a genuine 26AS mismatch involving an undeposited or unfiled TDS amount can take real time to resolve, since it depends on the client actually correcting their own filing, not just producing a document they already have. Factor this into your own filing timeline, and don't wait until the deadline to discover a mismatch you then have limited time to chase down.
See the guide on what to do if your Form 16A is missing for the related, but distinct, problem of a certificate simply not being issued, which is a faster and more common issue to resolve than a genuine 26AS mismatch.
Keeping your own invoice and payment record clean regardless
Rinto keeps a clear, dated record of every invoice and the payment actually received against it, which gives you an accurate independent record of what was deducted and when, exactly the evidence you need when escalating a 26AS mismatch with a client or through TRACES.
Frequently Asked Questions
Why doesn't TDS my client deducted show up in my Form 26AS?
This means the client either deducted the tax but never actually deposited it with the government, or deposited it but failed to file their quarterly TDS return correctly linking it to your PAN. Form 26AS is populated directly from that filed return, so a missing entry points to a failure on the deductor's side, not something you did incorrectly.
Am I liable if my client deducted TDS but never deposited it?
No, you are not held liable for a client's failure to deposit or correctly report TDS they deducted from your payment. The obligation and liability sit with the deductor, not the person the tax was deducted from. However, you still need to actively chase the documentation and escalate if necessary to actually claim the credit you're owed, since it won't resolve on its own.
What should I do if there's a mismatch between what my client deducted and what shows in 26AS?
First compare your Form 16A, if issued, against Form 26AS line by line to confirm the mismatch is real rather than a reporting delay. Then request the specific challan number and BSR code from the client, which proves whether the tax was actually deposited, and ask whether their TDS return for that quarter correctly includes your PAN. If the client can't resolve it, raise a formal grievance through the TRACES portal.
How is a 26AS mismatch different from a missing Form 16A?
A missing Form 16A usually means the client deposited the tax correctly but simply hasn't issued you the certificate yet, often resolved quickly once you ask. A 26AS mismatch means the tax was never actually deposited or the return was never correctly filed, a genuine failure on the government-filing side that takes longer to resolve since it depends on the client correcting their own filing, not just producing a document they already have.
Should I wait until tax filing deadline to check for a 26AS mismatch?
No, check well before your filing deadline, since resolving a genuine mismatch can take real time if it requires the client to correct their own TDS filing. Waiting until the deadline to discover a mismatch leaves you with limited time to escalate and resolve it, which can delay your own return or force you to file without the full credit you're owed.