Error Code 202 Income Tax: How to Resolve Error Code 202 in ITR Filing

In ITR filing, error code 202 usually indicates a discrepancy between the income stated in your Income Tax Return (ITR) and the TDS (Tax Deducted at Source) credits shown in Form 26AS. Form 26AS is a statement representing the information of any amount deducted as TCS (tax collected at source) or TDS (tax collected at source) from different sources of income of a taxpayer. It is linked to a taxpayer’s PAN (Permanent Account Number). 

Moreover, it shows the details of advance tax/self-assessment tax paid and high-value transactions made by the taxpayer. Error 202 in the ITR filing suggests that the total receipts shown under all heads of income in the ITR are lower than the gross receipts shown in Form 26AS.

Discrepancy:

The discrepancy shows that although the taxpayer has requested credit for TDS on certain receipts, such receipts have not been completely reported as income within the ITR while filing. To fix it, the taxpayer must settle the income stated in the ITR along with the gross receipts in Form 26AS. Moreover, they must ascertain that all income on which TDS deduction is considered is correctly reported under the respective heads of income.

Logging the gross receipts:

The gross receipts on which tax deduction occurs are to be logged in the schedules under the respective heads of income. The gross receipts have to be assessed in the year in which the credit for the TDS is claimed.

Reasons for Error Code 202 in Income Tax

Let’s first understand why Error Code 202 comes up:

• This income tax error code 202 comes when the income specified under different heads in the ITR is less than the gross receipts presented in Form 26AS.
• Error 202 in ITR arises when TDS credit is claimed without reporting the corresponding income in the ITR.

Now, let’s understand how to resolve “failed to initialise security client error code 202” and error code 202 income tax.

How to Resolve Error Code 202 in ITR Filing?

Knowing how to fix error 202 in ITR filing is vital. Here’s how to resolve error code 202 income tax:

• Ensure the accuracy of income and TDS credits:

Make sure that all income reported in Form 26AS is accurately recorded under the appropriate income categories in your income tax return.

• Correctly report the receipts:

If you have obtained TDS credit, once your ITR is filed, you must correctly report those receipts in your ITR.

• TDS credit on advances:

If TDS is credited on advances, it can’t be claimed in the same year. Make sure the TDS credit on advances is carried forward to the upcoming financial year.

• Filing of a revised return:

You may need to file a revised return by attaching all the receipts according to Form 26AS or by claiming TDS fairly as per Rule 37BA of the IT Rules.

• Corrections in request:

After making the required corrections, you can submit a revised return on the income tax department's e-filing portal.

• Approach the tax deductor for the discrepancy:

If the discrepancy happens due to error 202 in ITR committed by the tax deductor in Form 26AS, request the tax deductor to correct the mistake.

• Timely file the revised return:

To correct the errors in the ITR, taxpayers should file the revised return before 31st December of the AY.

Conclusion

Make sure to tackle the discussed discrepancies in a timely manner to avoid error 202 in ITR filing and any other issues with the tax authorities. If you are uncertain how to proceed, consult a tax professional for personalised guidance.

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