The Income Tax Department has reported that TAN mismatches in TDS filings have led to significant delays in processing tax refunds for thousands of taxpayers across various sectors. The issue stems from discrepancies between the TAN (Tax Deduction and Collection Account Number) quoted by deductors and the actual registered details in the tax department’s records. These mismatches are preventing the correct mapping of TDS credits to the deductees’ PAN accounts, resulting in refund processing errors and prolonged timelines.

Common errors include incorrect TAN entries in quarterly returns (Form 24Q, 26Q, 27EQ), quoting inactive or surrendered TANs, and failure to update changed TANs across systems and filings. Such inconsistencies often lead to rejection or hold-up of returns, requiring manual correction through the TRACES portal and revalidation of deductions. Tax professionals indicate that SMEs, co-operative societies, and firms with multiple branch-level TANs are among the most affected by these procedural lapses.

To address the problem, the Income Tax Department has advised all TAN holders to verify and correct their TAN data before filing TDS returns and issuing certificates. The department also plans to deploy an automated alert mechanism that will notify deductors about TAN discrepancies before filing. Taxpayers awaiting refunds are urged to check Form 26AS and AIS statements for credit mismatches and raise rectification requests or grievances where necessary. This development reinforces the importance of accurate TAN usage as a critical part of India’s digital tax refund infrastructure.