Form 26AS plays a crucial role in income tax filing. It serves as a consolidated statement providing a summary of various financial transactions linked to your PAN (Permanent Account Number). Moreover, it is an important document that helps taxpayers understand the taxes deducted or collected on their behalf. It also helps you understand the taxes deposited with the government. In this article, we will delve into the details of Form 26AS, how to view and download it, its benefits, its importance for ITR filing and more.
Understanding Form 26AS
Form 26AS, also known as the Tax Credit Statement, is a crucial document for taxpayers in India. It provides comprehensive details of the amount deducted as Tax Deducted at Source (TDS) or Tax Collected at Source (TCS) from various sources of income. Additionally, it shows information about advance tax/self-assessment tax paid and significant transactions done by the taxpayer.
In the past, taxpayers had to manually download Form 26AS to file their income tax returns. However, the process has become more convenient. You can now view and download FORM 26AS from the TRACES website. This online platform allows taxpayers to access their Form 26AS easily.
Form 26AS is an essential tool for taxpayers. It enables them to verify the contents of their TDS certificates. It also helps ensure that the deducted TDS deducted is appropriately deposited with the income tax department. Moreover, the scope of the statement has expanded. It now includes additional details such as foreign remittances, mutual fund purchases, dividends, and refund information.
Structure of Form 26AS
Let’s explore the structure and different parts of Form 26AS:
Part A: Details of Tax Deducted at Source
Part A of Form 26AS presents information about TDS deducted from various sources of income like salary, interest income, pension income, and prize winnings. It includes details such as the Tax Deduction and Collection Account Number (TAN) of the deductor and the amount of TDS deducted and deposited with the government. This section gets updated quarterly.
Part A1: Details of Tax Deducted at Source for 15G/15H
This section provides details of income where the taxpayer had submitted Form 15G or Form 15H and hence there as no TDS deduction. . Taxpayers can verify the status of TDS deductions if they have submitted these forms. If no Form 15G or Form 15H has been submitted, this section will display “No transactions present.”
Part A2: Details of Specific Transactions
This section contains details of specific transactions, such as TDS on the sale of immovable property, TDS on rent of property, and TDS on payment to resident contractors and professionals. If you have engaged in any of these transactions and TDS has been deducted, the relevant information will be displayed.
Part B: Details of Tax Collected at Source
Part B displays information about Tax Collected at Source (TCS) by sellers of goods. It provides details of sellers who have collected tax from you.
Part C: Details of Tax Paid (Other than TDS or TCS)
Part C includes information about tax payments made by the taxpayer directly. It covers details of advance tax and self-assessment tax, along with the associated challan details such as the BSR code, date of deposit, and CIN (Challan Identification Number).
Part D: Details of Paid Refund
If you have received any tax refunds, Part D will showcase relevant information. It includes the assessment year to which the refund pertains, the mode of payment, the amount paid, interest paid, and the date of payment.
Part E: Details of Specified Financial Transactions (SFT)
This section comprises details of high-value transactions reported by banks and other financial institutions. It includes information about transactions such as purchases of mutual funds, property, and corporate bonds.
Part F: Details of TDS on Sale of Immovable Property, Rent of Property, and Payment to Resident Contractors and Professionals
This part provides information about TDS deducted and deposited when you sell property, receive rent, or make payments to resident contractors and professionals.
Part G: TDS Defaults (Processing of Statements)
This section of the form displays any TDS defaults after the processing of TDS returns. However, it does not include demands raised by the assessing officer.
Part H: Details of Turnover as per GSTR-3B
Part H reflects the taxpayer’s turnover as reported in the GSTR-3B return, which is related to Goods and Services Tax (GST).
How to View Form 26AS?
There are two modes through which you can view Form 26AS:
The TRACES Portal:
The Tax Information Network (TIN) facilitates the TRACES (TDS Reconciliation Analysis and Correction Enabling System) portal, where taxpayers can access their Form 26AS. To view it, follow these steps:
- Visit the TRACES portal.
- Select “Taxpayer” from the drop-down menu and click on “Register as New User” if you haven’t registered before. Otherwise, log in with your credentials.
- Enter the required details and complete the registration process.
- After logging in, go to the “My Account” tab and select “View Form 26AS” from the drop-down menu.
- Choose the assessment year and the format in which you wish to view the form.
- Finally, click on “View/Download” to access Form 26AS.
Net Banking Facility:
If you have a net banking account with a bank authorized by NSDL (National Securities Depository Limited), you can view your Form 26AS through the bank’s net banking facility. Here’s how:
- Log in to your net banking account.
- Look for the option to view or download Form 26AS.
- Choose the assessment year for which you want to view the form.
- You will be redirected to the TRACES portal, where you can access your Form 26AS.
Benefits of Form 26AS
Form 26AS offers several benefits for taxpayers, including:
Comprehensive Tax Information:
Firstly, it provides a consolidated view of tax deducted or collected on your behalf by various deductors or collectors.
Verification of TDS/TCS:
Additionally, you can cross-verify the tax deducted at source (TDS) or tax collected at source (TCS) with the details mentioned in your Form 16 or Form 16A (TDS certificates).
Form 26AS assists in computing your total income accurately, ensuring that you claim the appropriate tax credits while filing your Income Tax Return (ITR).
Verification of Refunds:
Finally, you can verify the status of any refunds due to you during the applicable financial or assessment year using Form 26AS.
Form 26AS and TDS Certificates (Form 16/16A)
It is crucial to verify the details mentioned in your TDS certificates, which is Form 16 for salaried individuals and Form 16A for non-salaried individuals, with the information in your Form 26AS. By doing so, you can ensure the accuracy of tax deductions made from your income. You can also verify if the tax deduction was deposited with the income tax department.
Key things to verify:
- Correct Details: Firstly, check that the name, PAN number, deductor’s TAN, refund amount, and TDS amount are accurately reflected. Any discrepancies may cause problems while filing your ITR.
- Verification of TDS Amount: Secondly, compare the TDS data on your payslips or income receipts with the data in Form 26AS to ensure that the tax deducted has been deposited with the government. If the deductor has not filed or submitted the TDS on your behalf, contact them to rectify the issue promptly.
- Matching TDS Details: Additionally, ensure that the TDS mentioned in your TDS certificate (Form 16/16A) is correctly reflected in Form 26AS. If the TDS shown in the certificate does not appear in Form 26AS, it indicates that the deductor has deducted the tax but has not deposited it with the income tax department. In such cases, take action and contact the deductor to rectify the situation.
- Discrepancies and Corrections: Finally, if you identify any discrepancies between the TDS certificate and Form 26AS, inform your deductor and work with them to correct the inaccuracies promptly. Ensure that the deductor has filed TDS using your correct PAN number and other details. Incorrect filing under a different PAN can cause complications for both you and the deductor.
Form 26AS is a powerful tool that allows taxpayers to stay informed about their tax-related information. It streamlines the tax filing process by providing a consolidated statement of TDS, tax paid, and high-value transactions. By regularly checking and verifying Form 26AS, taxpayers can ensure accurate reporting of their income and taxes, promoting a smooth and hassle-free tax filing experience.
Frequently Asked Questions: