Download Form 26AS for the financial year, then collect TDS figures from each marketplace's settlement reports or tax statements. Group both by deductor and month, compare totals, and classify differences as timing, wrong PAN or TAN, unfiled returns or genuine short credit. Raise unresolved gaps with the marketplace's finance team, quoting settlement IDs, and track them until the credit appears.
What Form 26AS and your settlement reports each show
The two documents are built differently, which is why they rarely match line by line.
- Form 26AS is the government-side record. It lists TDS by deductor (name and TAN), section, transaction date, amount paid or credited, tax deducted and booking status. It only shows TDS once the deductor has filed its TDS return.
- Marketplace settlement reports are the platform-side record. They show order-level or settlement-level sales, commissions, fees, returns and any tax deducted, tied to a settlement date or ID.
So you are comparing a filed, aggregated figure against an operational, transaction-level figure. Your job is to roll the second up until it is comparable to the first.
Check the exact section under which each marketplace deducts, and how it is computed, in your seller agreement, the marketplace's tax communication and with your tax adviser. Do not assume the base or the rate; confirm the latest position.
Gather the right data first
Before matching, collect everything for the same financial year.
- Form 26AS for your PAN, downloaded from the Income Tax e-filing portal (via TRACES). Export or copy the deductor-wise details, not just the summary.
- Settlement reports from each marketplace for every payout date in the year, including the TDS line if shown.
- TDS certificates (Form 16A) or tax statements issued by the marketplace, where available.
- Your books: the TDS receivable ledger and bank credits for each payout.
- Legal entity details: PAN and the exact seller name registered on each marketplace. A marketplace may operate through more than one entity or TAN.
Keep one sheet per deductor so you do not mix entries from different TANs.
Step-by-step: match 26AS entries to payouts
- List 26AS entries by deductor and month. Record TAN, section, date of payment or credit, amount paid, TDS deducted and booking status.
- Roll up settlements to the same grain. Sum the TDS deducted from your settlement reports for each deductor and month. Use the settlement or deduction date, not the order date.
- Compare amount paid and TDS. Check the base amount first. If the base differs, the TDS will differ too, and fixing the base usually solves both.
- Tick off matches and mark the status: matched, timing difference, short, excess or missing.
- Tie to your books. Your TDS receivable ledger should equal the TDS per settlement reports. The difference between the ledger and 26AS is what you need to explain or chase.
- Document each exception with settlement IDs, dates and amounts so the marketplace can trace it.
Do this monthly or at least quarterly, not only at return filing time. Old gaps are harder to chase.
Common reasons entries do not match
- Return not yet filed. If the deductor has not filed its TDS return for the quarter, nothing appears in 26AS. Check the due dates for TDS returns with your tax adviser.
- Timing differences. A deduction at the end of one month may be booked in the next, or fall in a different quarter or financial year.
- Wrong PAN. If the marketplace holds an incorrect or outdated PAN for you, the credit may go to someone else or not appear.
- Different TAN or entity. Entries may come from a group company of the marketplace rather than the name you expect.
- Base differences. Returns, cancellations, discounts or fee adjustments can change the amount on which TDS was computed.
- Aggregation. 26AS may show one entry for several settlements, or split one settlement across entries.
- Booking status. Entries not marked as booked may not yet be available for credit.
What to do with the differences
Sort each exception by owner and action.
| Type | Likely action |
|---|---|
| Timing difference | Carry forward; recheck next month or quarter |
| Return not filed or not reflected | Ask the marketplace's finance or tax team for filing status and the TDS certificate |
| Wrong PAN or name | Get your PAN corrected on the seller account and request a corrected return |
| Short credit | Send settlement IDs and amounts; ask for reconciliation or a revised return |
| Excess in 26AS | Check whether it belongs to you; consult your tax adviser before using it |
When filing your return, the credit you can claim should be consistent with what 26AS shows, so unresolved gaps are a cash-flow and tax-cost issue, not just a bookkeeping one. Check current rules on claiming credit with your tax adviser.
Also keep GST TCS separate. It is handled through the GST portal, not Form 26AS, so do not mix it into this reconciliation.
Make it a repeatable monthly routine
The hardest part is not the comparison but getting clean, settlement-level TDS data every month. Standardise a template with columns for deductor, TAN, settlement ID, settlement date, base amount, TDS per report and TDS per 26AS, and keep an open-items log with owner and date raised.
If you sell on several marketplaces, a tool helps. MarketplaceMetrics by Fundle reconciles marketplace sales and settlements and tracks recovery cases, so deductions can be tied back to settlements instead of rebuilt in spreadsheets each quarter. Myntra Excel reports are reviewed today, and other marketplaces are in scope discussion. Whatever you use, the principle stays the same: match at deductor and period level, explain every difference and chase it to closure.
Worked example
Illustrative example only. All ₹ figures are made up to show the method.
A seller reviews one marketplace deductor for one quarter. The settlement reports show three settlements with TDS deducted:
| Settlement | Month | TDS per report (₹) |
|---|---|---|
| S-001 | Month 1 | 1,500 |
| S-002 | Month 2 | 1,800 |
| S-003 | Month 3 | 900 |
| Total | 4,200 |
Form 26AS for the same deductor shows entries of ₹1,500 and ₹1,800, total ₹3,300.
- Difference: ₹4,200 minus ₹3,300 = ₹900.
- The ₹900 equals S-003, so the likely cause is a Month 3 deduction not yet reflected, either a timing difference or an unfiled return.
- Action: confirm the filing status with the marketplace, ask for the TDS certificate, and recheck 26AS after the next update. If it still does not appear, raise it with S-003 details.
Questions and answers
Where do I download Form 26AS?
Log in to the Income Tax e-filing portal and use the option to view Form 26AS, which redirects to TRACES. Select the assessment year and download in a readable format. Portal navigation changes, so confirm the current path on the official site.
Why is TDS in my settlement report but not in 26AS?
Usually the deductor has not filed its TDS return for that period, or the entry is under a different PAN or TAN. It can also be a timing difference. Ask the marketplace for filing status and the TDS certificate.
How often should I reconcile Form 26AS with payouts?
Monthly roll-ups of settlement TDS are ideal, with a formal comparison against 26AS after each quarter's TDS return due date. Reconciling only at year end makes gaps harder to trace and fix, especially across several marketplaces.
Can I claim TDS that is not in Form 26AS?
Generally, credit depends on the TDS being reflected against your PAN, so unreflected amounts are risky to claim. Rules and procedures can change, so check the current position with your tax adviser before claiming anything not visible in 26AS.