What is Form 26AS - All You Need To Know

Key Takeaways

Form 26AS is a declaration containing the following details:

• Your income has taxes withheld from it by all the taxpayers
• Information about the sources of all taxes collected.
• The taxpayer has paid advance tax.
• payments for self-assessment taxes
• The taxpayers’ regular assessment tax payment (PAN holders)
• Information about the income tax refund you received during the fiscal year
• Information about high-value stock, mutual funds, and other transactions.
• Additional information such as information about the purchase and dividend of mutual funds, interest on tax refunds, off-market activities, foreign transfers, salary breakdown, etc.
• specifics of the tax savings on the sale of real estate
• Information on TDS defaults that occurred during the year (after processing TDS returns)

What exactly is Form 26AS

Form 26AS is an annual combined tax statement that presents all the information regarding your taxes. You can access Form 26as statement by logging onto the income tax e-filling website with your PAN number.

The form displays several taxes deducted from your income and also details of Tax Collected at Source (TCS). It also contains the Annual Information Return (AIR), which are high-value transactions filed by various entities. Form 26AS enables you to cross-check that the tax deposited with the income tax department matches with the tax deducted and paid in advance.

Parts of Form 26AS Statement

The income tax Form 26AS available online comprises seven parts:

1. Part A: Details of Tax Deducted at Source

This part contains the details of the TDS deducted from your salary, pension income, interest income, etc. Part A of Form 26AS has the details of the deductor, amount subtracted, date of the transaction, and the tax credited or deposited. Part A has two sections, Part A1 and Part A2.

a.Part A1: Details of TDS for Form 15G/Form 15H

Form 15G or Form 15H is submitted to avoid TDS on interest income and get exempted from taxes. The details of that appear under this section. If you haven’t submitted either of the forms, it will show ‘No transactions present.

b.Part A2: Details of Tax Deducted at Source on Sale of Immovable Property (For the seller of property)

If you have sold an immovable property, the TDS that was deducted will be shown in Part A2.

2. Part B: Details of Tax Collected at Source (TCS)

Part B of Form 26AS contains details of the Tax Collected at Source by a seller from a buyer. If you are a seller who has collected taxes, then information regarding the same will be visible in this section.

3. Part C: Details of Tax Paid other than TDS or TCS

Part C displays the advance tax payments and self-assessment taxes paid by you. It will also contain the taxes paid via challan.

4.. Part D: Details of Paid Refund

If you have received any tax refunds, they will be visible in Part D of Form 26AS. Details like assessment year, mode of payment, refund amount, interest paid, and payment date are accessible to you.

5. Part E: Details of AIR Transaction

Part E consists of all high-value transactions made by you, which have to be filed by entities like banks to the income tax department. The high-value transactions include investing in mutual funds, buying property, a cash deposit of more than ₹10 lakh, etc.

6. Part F: Details of Tax Deducted on Sale of Immovable Property (For the buyer of property)

Part F shows the details TDS deducted from the property bought by you.

7. Part G: TDS Defaults

Information on any tax defaults regarding the processing of statements can be viewed in the Part G of Form 26AS.

How to view Form 26AS?

1. On the TRACES portal, Form 26AS is available for viewing and downloading (see the step-by-step guide below on downloading Form 26AS).).

2.Through your bank account’s net banking service, you can view Form 26AS. A PAN holder with a net banking account with any authorized bank is eligible to see Form 26AS.

3. Only if your PAN number is connected to that particular account may you read your Form 26AS. This service is provided without charge.

How to download Form 26AS?

On the TRACES website or through the authorized banks’ net banking services, Form 26AS can be downloaded. Enter your login information for the income tax department at www.incometax.gov.in. If you don’t already have one, you must first register your PAN (see the button on the top right).

Step 1:

Visit the e-filing website

Step 2:

You can enter either your PAN or your Aadhaar number as your user ID. An error notice will appear if the user ID is wrong. Provide a valid user ID and continue.

Net banking is another method of account access.

Step 3:

By checking the box next to the secure access notice, you can confirm the message. Login is the predetermined secure access message by default. The income tax website’s authenticity is demonstrated by the default secure message. From the “Profile” option, the taxpayer can create their own personalized, secure access message.

Put in the password to proceed.

Step 4:

You’ll see the screen below. Visit “e-file.” View Form 26AS by clicking on “Income Tax Returns” in the drop-down menu.

Look at Form 26AS

Step 5:

You will be taken to the TRACES website after clicking “Confirm” on the disclaimer (don’t worry, this step is necessary and perfectly safe because it is a government website).

Step 6:

You are currently on the website for TRACES (TDS-CPC). Click “Proceed” after selecting the box on the screen.

Step 7:

Select the Assessment Year and the desired format for Form 26AS. Please leave the format set to HTML if you wish to view it online. You may also decide to download it in PDF format. After deciding, input the “Verification Code” and click “View/Download.”

Step 8:

You can view Form 26AS by opening it after downloading it.

Issues in Form 26AS and How to Rectify Them?

1. The taxpayers are having several problems with their Form 26AS, including:

2. On occasion, information in Form 26AS is updated after a specific delay.

3. Accidentally displaying or omitting transactions that apply to a certain taxpayer.

4.Information gaps between Forms 26AS and 16/16A (a certificate evidencing tax deduction on the source).

5.The aforementioned problems may occur for several reasons, including erroneous PAN disclosure, failure on the part of the deductor to deduct or deposit TDS, improper TDS amount, omissions or delays in filing TDS returns, incorrect Challan Identification Number (CIN), etc.

6. In this situation, the taxpayer must inform the TDS deductor of the situation and request clarification from him. Taxpayers have the ability to file a grievance on the e-filing portal with accompanying documentation and seek remedy if the deductor declines to resolve the problem.

7. To avoid future issues and to be accountable to the IT department, it is also advisable to fix Form 26AS’s inaccuracies and have them corrected before submitting the ITR..

Conclusion

To give taxpayers an exhaustive statement covering most of the transactions, the AIS has added information about several useful financial transactions that were not included in Form 26AS. Aside from a few flaws that AIS stakeholders have pointed out, this statement has improved financial transparency, decreased non-reporting and misreporting, and would significantly lessen litigation.