Features/Reconciliation/TDS Reconciliation

Form 26AS · Reconciliation

TDS Reconciliation

Books versus Form 26AS and AIS. Section-wise totals. Every variance with cause.

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CORAA TDS reconciliation with deductee-side drill

TDS verification runs in both directions. The Deductee · 26AS side reconciles the TDS credits in the books against Form 26AS, AIS and TRACES downloads — CORAA merges them, ties them to the TDS ledgers, and sorts every credit into matched, variance, books-only and 26AS-only, with potential Sec 199 recovery quantified. The Deductor · 26Q side totals the TDS the client itself deducted, section by section, and feeds Form 3CD Clause 34 directly. Threshold compliance verified per Income Tax Act section.

Books-only checks from day one, section-wise totals, threshold compliance, rate verification, due-date analysis
Deductee recon once Form 26AS is uploaded — matched, variance, books-only, 26AS-only, with Sec 199 recovery flagged
Vendor-wise drill with cause attribution on every variance
Deductor-side section totals feed Form 3CD Clause 34(a) automatically
Multi-file ingestion, AIS JSON + TRACES PDF + per-quarter downloads all merge
Deductor · 26Q view with Expected vs Shortfall columns flagging deduction gaps for verification

Two paths, one ledger

The old way, and ours.

Two paths to the same audit conclusion. One leaves traces; the other doesn't.

Traditional

The old way

-Senior article downloads Form 26AS quarter by quarter from TRACES
-Each quarter manually entered into a TDS reconciliation Excel
-Section-wise totals computed by hand for Form 3CD Clause 34
-Vendor variances investigated one at a time, deduction reason often missing
-Threshold compliance checked manually per IT Act section

Days of work. Section-wise totals frequently transcribed wrong. Variances rarely documented.

CORAA

On the Ledger

Upload all four quarters of 26AS in one go, PDFs or JSON
Books TDS register pulled automatically from the ERP
Bucketed reconciliation rendered with deductor-wise totals and Sec 199 recovery quantified
Deductor-side section totals tied directly to Form 3CD Clause 34(a)
Threshold compliance verified per section (192 / 194A / 194C / 194I / 194JB / 194Q / 194R)
Every variance annotated: TAN missing in books, deductor filing lag, period mismatch

Fifteen minutes. Deductor-side section totals match Clause 34 exactly. Every variance documented.

How it works

Three steps. Every trace logged.

Step 01

Upload Form 26AS

Multi-file upload supports the full year, quarterly 26AS PDFs from TRACES, AIS JSON exports, and per-quarter downloads. CORAA merges them into one canonical record.

Step 02

CORAA reconciles

On the deductee side, books TDS ledgers (already loaded via ERP ingest) tie to 26AS deductor entries: matched, variance, books-only, 26AS-only — with 26AS-only credits tested as potential Sec 199 recovery. On the deductor side, books deductions total section by section.

Step 03

Review and disclose

Open any variance to see the source voucher, the cause, and the disclosure path. Deductor-side section totals feed Form 3CD Clause 34(a) directly; variances above tolerance disclose at Clause 34(b).

Inside the module

What you actually get.

Bucketed two-direction match

Every TDS entry lands in matched, books-only, or 26AS-only. The bucket totals reveal where the reconciliation effort is needed.

›Matched: tied deductor TAN + amount + period
›Books-only: typically missing TAN or deductor filing lag
›26AS-only: typically missing voucher entry in books

Section-wise totals for Form 3CD

Clause 34(a) of Form 3CD requires section-wise TDS totals, Sec 192 salary, 194A interest, 194C contractor, 194I rent, 194JB professional, 194Q goods, 194R perquisites. CORAA computes these from the deductor-side books data — the deducted-on-payments direction, distinct from the 26AS credits — and previews the Clause 34 tables.

›Auto-populated Form 3CD Clause 34(a) table
›Variances disclosed at Clause 34(b)
›Drill from total to individual vouchers

Threshold compliance per section

Each IT Act section has its own threshold, Sec 194A ₹40,000 for banks, 194C ₹30,000 single / ₹1L aggregate, 194I ₹2.4L for rent. CORAA verifies threshold compliance per vendor per section.

›Vendor-wise threshold tracking
›Aggregate-payment compliance
›Lower-deduction certificate (Sec 197) flagging
›Rule 30 deposit due-date testing

Multi-file ingestion

TRACES exports come quarterly. AIS comes annually. Clients often share fragments mid-engagement. CORAA accepts every format and version, merges them, and supersedes older files automatically.

›Quarterly 26AS PDFs
›Annual AIS JSON
›Mid-engagement partial uploads
›Audit log captures every upload

Rule 37BA and name-bridged matching

A potential Sec 199 credit is flagged as recoverable only where the corresponding income is offered to tax, per Rule 37BA, and where the return is still within the revision window under Sec 139(5); lines that are time-barred, belong to another year or assessee, or are timing differences are held back rather than counted. For TAN-less ERP entries, name-bridging reconciles the party against the 26AS deductor so a missing TAN doesn't drop the credit, and low-confidence matches are routed to their own review bucket instead of being asserted.

›Sec 199 recoverability gated on Rule 37BA and the Sec 139(5) revision window
›Time-barred, other-year and timing-difference lines separated out
›Name-bridging for TAN-less ERP entries against the 26AS party
›Low-confidence name matches flagged for review, not asserted

Frequently asked

Answers, up front.

The row appears in the books-only bucket with the cause flagged as 'TAN missing'. The recon engine cannot tie to 26AS without a TAN. The auditor either corrects the Party Master in the source ERP or accepts the row as an unmatched item and discloses in Form 3CD Clause 34(b).

Yes. The section-wise totals computed during TDS reconciliation populate Form 3CD Clause 34(a) automatically. Any books-vs-26AS variances above tolerance disclose at Clause 34(b). No re-keying.

CORAA tracks both single-payment threshold and annual aggregate per vendor. When a vendor crosses the annual aggregate of ₹1,00,000 in payments without TDS deducted on prior payments, the cumulative shortfall is flagged. Sec 194A, 194I, 194J, 194Q, and 194R each have their own threshold logic encoded.

Yes. Books-only checks run FY-aware section-threshold breach testing, Rule 30 deposit due dates, Sec 201(1A) interest on late deposit and Sec 234E late-filing fee — each flag carrying its section and the period it relates to, as candidates for the auditor to verify.

A potential Sec 199 credit, 26AS shows it, the return never claimed it, is only flagged as recoverable where the corresponding income has been offered to tax, per Rule 37BA, and where the return is still within the revision window under Sec 139(5). Lines that are time-barred, belong to another year or assessee, or are just timing differences are held back rather than counted as recoverable.

For TAN-less ERP entries, name-bridging reconciles the party against the 26AS deductor so a missing TAN doesn't drop the credit from the match. Low-confidence name matches are routed to their own review bucket instead of being asserted as a tie.

See it on a real ledger

Run tds reconciliation on one of your engagements.

Bring a Trial Balance and a General Ledger. We'll walk through reconciliation end-to-end on your data, not a sandbox.

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