Matching bank receipts to invoices: UTR, part payments and TDS short-payments
Last reviewed 22 October 2026. General information, not legal or tax advice.
Chasing a customer who has already paid is embarrassing and damages the relationship. Matching receipts quickly keeps your receivables list honest.
Read the narration
Each credit in the bank statement has a narration: the transfer type (NEFT, RTGS, IMPS, UPI), the UTR or reference, and usually the payer’s name, often cut short. Match by the payer’s name and the amount first; the UTR confirms it when the customer quotes it.
Exact amount, one or many invoices
If the amount equals one open invoice, or the sum of the oldest few invoices of that customer, the match is usually clear. When the payer name is missing, an amount that fits only one customer’s open bills is a reasonable suggestion — confirm it before recording.
Short by TDS
Business customers often deduct TDS before paying, so the receipt is a little less than the invoice. Record the receipt and the TDS separately against the invoice so it closes fully, and check later that the TDS appears in your Form 26AS or Annual Information Statement.
Part payments
Record part payments against the bill, keep the balance open, and mention the remaining amount in the next reminder so the customer sees exactly what is left.
Doing it without the manual work
Upload your bank statement (Excel or CSV) to Tagaada and it suggests which customer and invoices each credit belongs to, flags amounts that look short by TDS, and records the payment only when you click. Follow-ups for those bills stop automatically. See also how to reduce DSO.
Frequently asked questions
Why is the amount received less than the invoice?
Usually because the customer deducted TDS under the Income-tax Act before paying. The deducted amount shows in your Form 26AS and Annual Information Statement once the customer files its TDS return, and you claim it as a credit. Record it against the invoice so the bill is closed, not left as a small balance.
What is a UTR?
The Unique Transaction Reference of a bank transfer. It appears in the bank statement narration and lets both sides identify the same payment. Ask customers to share it when they say they have paid.
How do I handle one payment for several invoices?
Allocate it to the oldest open invoices first unless the customer says otherwise, and keep a note of the allocation. Ask the customer for a remittance advice listing the invoices for large payments.