Form 26AS: What is Form 26AS of Income Tax?

Form 26AS, often called the Annual Tax Statement, is a crucial document provided by the Income Tax Department of India. It is a consolidated statement that captures various tax-related information, making it easier for taxpayers to track their tax payments, deductions, and credits.

What 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 details of Tax Collected at Source (TCS). It also contains the Annual Information Return (AIR), a high-value transaction filed by various entities. Form 26AS enables you to cross-check that the tax deposited with the income tax department matches the tax deducted and paid in advance.

Importance of Form 26AS

Form 26AS holds significant importance due to its comprehensive details on tax credits, which are crucial for accurate tax filing and compliance. Here is why Form 26AS is essential:

Tax Credit Verification

Form 26AS lists all the taxes deducted at source (TDS) by employers, banks, and other entities. It ensures that the taxes deducted from your income have been credited to your account by the Income Tax Department, thereby preventing any discrepancies during tax filing.

Income Reporting

This form consolidates information about various incomes received during the financial year, including salaries, interest, and proceeds from the property sale. It aids taxpayers in reporting their income accurately, reducing the risk of underreporting or omitting income sources.

Claiming Refunds

If the TDS or tax paid exceeds the actual tax liability, Form 26AS assists in claiming refunds. It records all tax payments, enabling taxpayers to claim the correct refund without delays or disputes.

What is New in the Form 26AS, effective from 1 June 2020?

Effective 1 June 2020, taxpayer data will be available in an updated Form 26AS, which includes:

• Tax deducted at source (TDS) and Tax Collected at Source (TCS)
• Details of specified financial transactions
• Income tax payments such as advance tax and self-assessment tax paid by the taxpayer
• Tax demands and tax refunds
• Pending and completed income tax proceedings

The government has yet to notify or clarify which specified financial transactions are reportable in the new Form 26AS. This new format aligns with the Budget 2020 announcement aimed at facilitating compliance and ensuring correct tax payments.

Structure and Parts of Form 26AS

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

Part A: Details of TDS (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 deductor details, the amount subtracted, the date of the transaction, and the tax credited or deposited. It has two sections: Part A1 and Part A2.

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

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

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 deducted TDS will be shown in Part A2.

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

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 will be visible in this section.

Part C: Details of Tax Paid (Other than TDS or TCS)

Part C displays the advance tax payments and self-assessment taxes you have paid. It also contains the taxes paid via challan.

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.

Part E: Details of AIR Transaction

Part E consists of all your high-value transactions, which entities like banks must file with the income tax department. These include investing in mutual funds, buying property, and making a cash deposit of more than ₹10 lakh.

Part F: Details of Tax Deducted on Sale of Immovable Property (For The Buyer of Property)

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

Part G: TDS Defaults

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

How to View and Download Form 26AS?

Form 26AS is an essential document for taxpayers in India, providing a comprehensive statement of all tax-related information. Here’s a detailed guide on how to view and download Form 26AS through various platforms:

View Form 26AS Through Net Banking Facility

• Access your bank’s net banking portal. Ensure that your bank is authorized to provide Form 26AS services.
• Use your customer ID and password to log in.

• Find the menu’s ‘Tax Services’ or ‘Income Tax’ section.
• Click on ‘View Form 26AS’ or a similar option.

• You will be redirected to the TRACES (TDS Reconciliation Analysis and Correction Enabling System) website.
• Agree to the usage and acceptance terms.

• Select the assessment year and format (PDF or HTML) in which you want to view the form.
• Form 26AS will be displayed; you can download it for your records.

View Form 26AS Through e-Filing Portal

• Visit the Income Tax Department’s e-filing portal (www.incometaxindiaefiling.gov.in).
• Use your PAN number and password to log in.

• On the dashboard, navigate to the ‘My Account’ section.
• Click on ‘View Form 26AS (Tax Credit)’.

• You will be redirected to the TRACES website.
• Confirm the redirection and proceed.

• Select the assessment year and desired format (PDF, HTML, or text).
• Form 26AS will be displayed. You can view, download, and print it as needed.

View Form 26AS Through TRACES Portal

• Go to the TRACES website (www.tdscpc.gov.in).
• Use your PAN number and password to log in.
• If you do not have an account, you will need to register.

• Navigate to ‘Form 26AS’ under the ‘View/Verify Tax Credit’ tab.

• Choose the assessment year and the format (PDF, HTML, or text) in which you want to view the form.
• Form 26AS will be displayed. You can download and save it for your records.

Benefits of Form 26AS

Form 26AS is a crucial document for taxpayers in India, serving as a consolidated annual tax statement. It encompasses details of taxes paid, refunds received, and transactions reported to the tax authorities. Understanding the benefits of Form 26AS can help taxpayers ensure compliance, accurate filing, and efficient financial planning. Here are the key benefits:

Consolidated Tax Information

Form 26AS provides a comprehensive summary of all tax-related information, including tax deducted at source (TDS), tax collected at source (TCS), and advance tax payments. This consolidation simplifies the process of tracking various tax payments and ensures that all relevant data is available in one place.

Accurate Tax Filing

Using Form 26AS, taxpayers can accurately report their income and taxes paid, reducing the risk of errors or omissions. The form is a reference for all tax credits, helping cross-verify the information provided in the income tax return (ITR).

Prevention of Tax Notices

Discrepancies between the ITR filing and the tax department’s records can lead to notices and scrutiny. Form 26AS helps prevent such issues by ensuring that the data filed in the return matches the records maintained by the tax authorities, thereby minimizing the chances of receiving notices for discrepancies.

Verification of TDS and TCS

Form 26AS allows taxpayers to verify that the taxes deducted by various entities, such as employers, banks, and other organizations, have been correctly deposited with the government. This verification ensures that the taxpayer receives credit for all TDS and TCS payments, preventing potential issues with underreported income or unpaid taxes.

Claiming Tax Refunds

Taxpayers can claim a refund if the tax deducted or paid exceeds the tax liability. Form 26AS provides the necessary details to support the refund claim, ensuring a smooth process and an accurate refund amount.

Key Factors to Check in Form 26AS

Checking Form 26AS is crucial for ensuring accurate tax filing and compliance. Here are the key factors that taxpayers should pay attention to when reviewing their Form 26AS:

Tax Deducted at Source (TDS)

Review the details of TDS deducted from various income sources such as salaries, interest income, rental income, and commission. Ensure that the TDS amounts match the figures provided by the deductor in TDS certificates (Form 16, Form 16A, etc.).

Tax Collected at Source (TCS)

Check for any tax collected at source, especially if you are involved in transactions such as the sale of goods, sale of motor vehicles, or receipt of rent. Verify that the TCS amounts are correctly reflected in Form 26AS.

Advance Tax and Self-Assessment Tax Payments

Verify the details of advance tax and self-assessment tax payments made during the financial year. Ensure that these payments are accurately credited to your PAN (Permanent Account Number) and are reflected in Form 26AS to avoid any tax payment discrepancies.

Refunds

Check for any tax refunds processed by the Income Tax Department. Ensure that the refund amounts match the refund claims filed in your income tax returns. Address any discrepancies promptly to avoid delays in receiving refunds.

High-value Transactions

Review the details of specified financial transactions reported in Form 26AS. These transactions may include property purchases, investments, or other high-value transactions reported to the tax authorities. Ensure that the information is accurate and matches your financial activities.

Tax Demand

Check for any outstanding tax demands or dues mentioned in Form 26AS. Address discrepancies or outstanding tax payments promptly to avoid penalties and interest charges imposed by the tax department.

Importance of Comparing Form 26AS with Form 16 Before Filing Your Income Tax Return (ITR)

Filing Income Tax Returns (ITR) is crucial for every taxpayer in India. It ensures compliance with tax laws and helps avoid penalties and scrutiny from the tax authorities. One essential step in this process is comparing Form 26AS with Form 16, especially for salaried individuals. Here’s why it’s important:

Verification of Tax Deducted at Source (TDS)

Comparing the TDS figures mentioned in Form 16 with those in Form 26AS ensures that all TDS deductions made by the employer have been correctly deposited with the government against the taxpayer’s PAN.

Detection of Discrepancies

Discrepancies between Form 16 and Form 26AS can arise for various reasons, such as errors in TDS deductions, delays in depositing TDS with the government, or mismatches in PAN details.

Avoidance of Double Taxation

Sometimes, taxpayers may receive income from sources other than salary, such as interest from fixed deposits or rental income. These incomes may attract TDS, which should be reflected in Form 26AS.

Things to Verify in TDS Certificate with Form 26AS

Employers, banks, and other entities deduct TDS on various individual payments and then deposit it with the government on their behalf. Taxpayers must verify the TDS details provided in

Personal Details

Ensure that your details, such as name, PAN (Permanent Account Number), and assessment year, are correctly mentioned in the TDS certificate and Form 26AS. Any discrepancies could lead to issues in tax filings and refunds.

TDS Amounts

Check whether the TDS amounts mentioned in your TDS certificate match the figures in Form 26AS. Discrepancies in TDS amounts could indicate tax deductions or deposit errors, which must be rectified before filing your tax return.

Tax Deductor Details

Confirm that the details of the tax deductor (employer, bank, etc.) mentioned in your TDS certificate match those provided in Form 26AS. It includes the deductor’s name, TAN (Tax Deduction and Collection Account Number), and address. Any discrepancies should be addressed promptly.

TDS Challan Details

Check the TDS challans mentioned in your TDS certificate, such as challan number, date of deposit, and amount deposited. Verify these details with the corresponding entries in Form 26AS to ensure the TDS has been correctly deposited with the government.

What Steps to Take if there is an Error in Your Form 26AS?

Form 26AS provides a consolidated view of their tax-related information. However, errors or discrepancies in Form 26AS can lead to confusion and potential issues during tax filing. If you notice any errors in your Form 26AS, here are the steps you should take to rectify them:

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

1. On occasion, information in Form 26AS is updated after a specific delay.
2. Accidentally displaying or omitting transactions that apply to a particular taxpayer.
3. Information gaps between Forms 26AS and 16/16A (a certificate evidencing tax deduction on the source).
4. The problems mentioned above 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, and incorrect Challan Identification Number (CIN).
5. In this situation, the taxpayer must inform the TDS deductor and request clarification. If the deductor declines to resolve the problem, taxpayers can file a grievance on the e-filing portal with accompanying documentation and seek remedy.
6. It is also advisable to fix Form 26AS’s inaccuracies and have them corrected before submitting the ITR to avoid future issues and to be accountable to the IT department.

Key Takeaways

• Form 26AS is a consolidated tax statement provided by the Income Tax Department.
• It includes tax deducted at source (TDS) from various income sources.
• Form 26AS also covers tax collected at source (TCS) on specific transactions.
• Taxpayers can track advance tax and self-assessment tax payments through Form 26AS.
• It facilitates the monitoring of income tax refunds processed by the authorities.
• Form 26AS provides insights into high-value financial transactions reported to the tax department.

Conclusion

To give taxpayers an exhaustive statement covering most of the transactions, the AIS (Annual Information Statement) has added information about several beneficial financial transactions 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.

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