Form 26AS

Introduction

When filing your Income Tax Return (ITR), having all the necessary documents is crucial for accurate tax filing. One of the most important documents you will need is Form 26AS. This form plays a pivotal role in ensuring your tax filings are accurate and reflect all the tax payments made on your behalf. Understanding what Form 26AS is, its benefits, and how to access it is essential for every taxpayer.

What is Form 26AS?

Form 26AS is a tax credit statement that provides a comprehensive overview of all the tax-related information linked to your Permanent Account Number (PAN) for a particular financial year. Issued annually by the Income Tax Department, it includes details of tax deducted at source (TDS), tax collected at source (TCS), advance tax payments, self-assessment tax payments, and any refunds issued to you. Additionally, it shows information on high-value transactions like mutual fund purchases, dividends, foreign remittances, and more.

Form 26AS plays a crucial role for taxpayers by ensuring that their records accurately reflect the tax deducted or collected on their income. This form is crucial when filing your ITR, as it ensures that you claim the correct tax credits and avoid discrepancies.

Benefits of Form 26AS

Form 26AS offers multiple benefits to taxpayers, making the process of filing returns and managing taxes more straightforward. Here are some key advantages:

1. Consolidated View of Tax Payments:

It provides a comprehensive statement of all Tax Deducted at Source (TDS), Tax Collected at Source (TCS), and advance tax payments made throughout the year. This consolidated view helps taxpayers keep track of the taxes deducted or paid against their PAN.

2. Verification of Tax Credits:

Taxpayers can cross-check the tax deducted by employers, banks, or other entities with Form 26AS before filing returns to ensure they receive accurate tax credit. This prevents discrepancies and makes filing returns easier.

3. Avoids Mismatches in Tax Filing:

By reviewing Form 26AS, taxpayers can identify any errors or missing entries in TDS credits or advance tax payments. This helps to avoid mismatches in the income tax return, reducing the chances of getting a notice of form 26AS from the Income Tax Department.

4. Proof of Income and Tax Paid:

It acts as official proof of income earned and taxes paid or deducted. This is especially useful when applying for loans, visas, or making any financial disclosures, as it showcases tax compliance.

5. Tracking Refund Status:

Form 26AS allows taxpayers to track the status of any tax refund that may be due to them. It shows whether the refund has been processed and credited to the account.

Information Available on Form 26AS

Form 26AS contains several important sections that provide detailed tax-related information for taxpayers. The data is organized to give a clear view of the tax deducted, collected, or paid during the financial year:

1. Part A – Tax Deducted at Source (TDS):

This section shows details of TDS collected on income such as salary, interest, rent, etc. It includes information on the deductor’s name, PAN, amount paid, and TDS deposited with the government. It helps taxpayers verify if the right amount of tax has been deducted.

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

Part B lists the details of TCS collected by sellers on certain transactions (like the sale of scrap, tobacco, or timber). It provides the collector’s details, the amount collected, and the total TCS.

3. Part C – Advance Tax and Self-Assessment Tax:

It shows payments made towards advance tax and self-assessment tax. These are directly paid by taxpayers to manage their tax liability throughout the year, and this section helps in confirming those payments.

4. Part D – Refund Details:

This section contains the details of any tax refund credited to the taxpayer’s account, including the assessment year, mode of payment, and interest (if any).

5. Part E – AIR (Annual Information Return):

Financial institutions report high-value transactions (like large investments, mutual fund purchases, property sales, etc.) to the tax department, which is listed in this part. This helps in monitoring transactions and ensuring they match the taxpayer’s declared income.

6. Part F – Tax Deducted on the Sale of Immovable Property:

If TDS is deducted when selling a property, the details are available here. It includes information about the property sale transaction and the buyer’s TDS deduction.

7. Part G – TDS Defaults:

This part reflects any defaults related to TDS payments. It highlights issues such as late filing, short deduction, or interest payable, which need to be addressed.

By reviewing Form 26AS, taxpayers can get a complete overview of their tax situation, ensuring compliance and transparency in their financial dealings. It acts as a key document during the filing of income tax returns, ensuring the information provided is accurate and complete.

You may also want to know Section 194N

New Additions to Form 26AS

The Income Tax Department has updated Form 26AS with several new features to make it more comprehensive and user-friendly. Some of the latest additions include:

• Foreign Remittance Details: Information on foreign remittances reported in Form 15CC.
• TDS on Salary: Data related to TDS on salary from the last quarter’s Form 24Q.
• Interest on Tax Refunds: Details of interest earned on income tax refunds.
• PAN Information: PAN details from Form 61/61A.
• Off-Market Transactions: Reports from the Depository or Registrar and Transfer Agent about off-market transactions.
• Mutual Fund Dividends and Purchases: Information on mutual fund dividends and purchases from the Registrar and Transfer Agent.

Structure and Parts of Form 26AS

Form 26AS is structured into various parts, each providing specific information:

PART-I:

Details of Tax Deducted at Source (TDS) on income from salary, interest, profession, business, and other sources.

PART-II:

Details of TDS not deducted due to submissions of Form 15G or Form 15H, applicable to senior citizens with income below the exemption limit.

PART-III:

Details of TDS on payments made in kind, such as foreign trips after meeting sales targets or cars won in lotteries.

PART-IV:

TDS details on sales of property, rent payments over ₹50,000 per month, payments to contractors or professionals exceeding ₹50 lakhs, and sales of virtual digital assets like cryptocurrency.

PART-V:

Details of transactions under specific provisions related to virtual digital assets.

PART-VI:

Information on Tax Collected at Source (TCS) under various sections.

PART-VII:

Details of refunds paid out by CPC TDS.

PART-VIII:

TDS details for buyers of property, those paying rent over ₹50,000 per month, payments to contractors/professionals over ₹50 lakhs, and buyers of virtual digital assets.

PART-IX:

Transaction and demand details under Section 194S for virtual digital asset buyers.

PART-X:

TDS/TCS defaults after processing of TDS returns, excluding demands raised by the assessing officer.

How to Download Form 26AS?

Form 26AS can be easily accessed and downloaded online. Here are the steps you need to follow:

Visit the Income Tax e-Filing Portal

• Go to the official Income Tax e-Filing portal: https://www.incometax.gov.in.
• Log in using your PAN as the user ID, along with your password and the captcha code.
• If you are a new user, you will need to register by providing your PAN, name, and other basic details.

Navigate to View Form 26AS

• After logging in, go to the ‘e-File’ menu.
• Select ‘Income Tax Returns’ and then click on ‘View Form 26AS (Tax Credit)’.
• You will be redirected to the TRACES (TDS Reconciliation Analysis and Correction Enabling System) website. Click on the ‘Confirm’ button to proceed.

View Form 26AS

• On the TRACES website, select ‘View Tax Credit (Form 26AS)’.
• Choose the assessment year for which you want to view Form 26AS.
• Select the format (HTML, PDF, or text) in which you wish to download the form. Click on ‘View/Download’.

Download and Save

• To download Form 26AS, select the PDF format and click on ‘Export as PDF’.
• The form will be downloaded to your computer. Note that it is password-protected.
• The password to open the PDF file is your date of birth (in DDMMYYYY format).

Alternative Method: Access via Net Banking

1. Many banks offer the option to view and download Form 26AS through their net banking services.
2. Log in to your bank’s net banking portal.
3. Find the option ‘View Tax Credit Statement (Form 26AS)’ under the income tax services section.
4. You will be redirected to the TRACES portal, where you can view or download the form.

By following these steps, you can easily access and download Form 26AS, helping you track your tax credits and ensure all your income tax details are accurate.

Conclusion

Form 26AS is an indispensable document for taxpayers, providing a comprehensive overview of all tax-related activities for a particular financial year. By understanding and utilizing this form, taxpayers can ensure accurate and efficient filing of their Income Tax Returns, avoid discrepancies, and claim all eligible tax credits. Regularly reviewing Form 26AS can also help in monitoring financial transactions and ensuring compliance with tax regulations.