26AS Reconciliation – Issues & Solution

By taxreco In Accounting Basics, Process Automation, Tax Automation



Reconciling 26AS form with books is an important activity for tax team. There are multiple issues faced by tax teams during 26AS reconciliation and hence it is always drifted towards year end and finalized before filing Income tax return. 26AS reconciliation is not a year end activity though and should be done every quarter. To know more, you can read https://www.taxreco.com/why-is-26as-reconciliation-not-a-year-end-activity/

However, let’s look at issues faced by tax teams while reconciling 26AS with books and possible solutions for these issues

TAN to PAN Search –

TAN to PAN mapping is a laborious task when it comes to 26AS Reconciliation.

Tax team spends a significant amount of time in mapping the TAN numbers, appearing in 26AS form, to their customers’ PAN number in TDS Receivable ledger.

TaxReco has solved this problem for you by automating this process of identifying PAN number associated with a particular TAN number appearing in 26AS form.

If your tax team is facing this issue, TaxReco can help to automate this process.

Reconciling Transactions on One to One or One to many basis –

Customers at times do not deposit TDS transaction wise. It becomes difficult to reconcile Income and TDS on one to one or one to many basis.

TaxReco’s algorithm can solve this problem and your team can spend more time on analyzing the data.

Following up with customers –

Approximately 70% of the customers do not reconcile completely. Either they are partially matching or haven’t deposited TDS at all. If the number of customers is more, following up with them individually is a challenge. TaxReco can help you to automate follow ups with customers.

Reconciliation Data Repository –

When reconciliation is done manually, data often resides in excel sheets and these sheets can be explained only by that person who has done it. If the person leaves the organization then entire reconciliation has to be done again. Technology platform like TaxReco can standardize the process and can be used as a repository for 26AS reconciliation data.

If you are still contemplating whether automation of 26AS reconciliation, you can read more here https://www.taxreco.com/automation-of-tds-reconciliation-is-it-necessary/ or get in touch with us

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