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What is Form 26AS?

Updated: May 16


What is Form 26AS?
What is Form 26AS?

Form 26AS, also known as the Tax Credit Statement, is a crucial document for taxpayers in India. It is a consolidated tax statement issued to PAN holders under Rule 31AB of the Income Tax Rules.

 

Table of Contents

 

This form provides a comprehensive record of the various taxes deducted from your income by deductors.


Importance of Form 26AS in Tax Filing

The importance of Form 26AS in tax filing cannot be overstated. It contains details of tax deducted at source (TDS), tax collected at source (TCS), and other taxes paid by you. These details are linked to your PAN and reflected in your Form 26AS on the TRACES portal.

When you file your income tax returns, Form 26AS is proof of tax deducted at the source and paid. It helps you verify whether the tax deducted from your income as per your Form 16/16A/16B has been deposited to the government.

Form 26AS is an essential tool for hassle-free and accurate tax filing. It ensures that you get credit for the taxes deducted from your income by the deductor. So, always cross-verify your tax credits with Form 26AS before filing your Income Tax Return. It’s a step towards a smoother, more transparent taxation process. Remember, a careful taxpayer is a happy taxpayer!


Components of Form 26AS

A detailed explanation of each part of Form 26AS:

Part A: TDS Details

Tax Deducted at Source (TDS) is a provision where a person (deductor), who is liable to make payment of specified nature to any other person (deductee) shall deduct tax at source and remit it into the account of the Central Government. The deductee from whose income tax has been deducted at source would be entitled to get credit for the amount deducted based on Form 26AS for the TDS certificate issued by the deductor.


Part B: TCS Information

Tax Collected at Source (TCS) is the tax payable by a seller, which he collects from the buyer at the time of sale. Section 206C of the Income Tax Act provides the seller's list of goods on which the seller has to collect tax from the purchasers. This part of Form 26AS will include the seller's tax details.


Part C: Advance Tax Payments

Advance Tax refers to paying a part of your taxes before the end of the fiscal year. Also known as the 'pay-as-you-earn' scheme, advance tax is the income tax payable if your tax liability exceeds ₹10,000 in a financial year and should be paid in the year the income is received. This section of Form 26AS will show the tax details of advance tax paid by the taxpayer.


Part D: Refund

The Refund Section of Form 26AS displays the refunds received during the financial year. It includes the assessment year for which the refund is granted, the mode of payment, the amount of refund, and the date of payment. This part is crucial for taxpayers to verify against their records to ensure that the refunds due to them have been correctly processed and paid by the tax department.


Form 26AS is an annual consolidated tax statement accessed from the Income Tax Department’s website by all taxpayers using their Permanent Account Number (PAN). It is a crucial document that summarizes taxes deducted on your behalf by deductors, taxes collected by collectors, advance tax paid by you, self-assessment tax payments, and high-value transactions for a particular financial year. It helps in filing an accurate income tax return.


How to Download Form 26AS

Here is a step-by-step guide on how to access and download Form 26AS through the TRACES website and net banking:

Step 1: Visit the TRACES website: Open your web browser and navigate to the TRACES website.

Step 2: Log in to your account; if you already have one, enter your login credentials. If not, you’ll need to register first.

Step 3: Navigate to ‘My Account’: Go to the ‘My Account’ section once logged in.

Step 4: Select ‘View Form 26AS’: In the ‘My Account’ section, you will find an option to ‘View Form 26AS’. Click on it.

Step 5: Confirm: You will be redirected to a page where you need to confirm that you will be redirected to the TRACES website. Click on ‘Confirm’.

Step 6: Select Assessment Year: Now, select the ‘Assessment Year’ for which you want to download the form.

Step 7: Download the form: Click on ‘Export as PDF’ to download the form. Once downloaded, you will be asked to enter a password to open the form. The password is your date of birth in DDMMYYYY format. Utilising


Form 26AS for Tax Planning and Compliance

Form 26AS is a crucial document for efficient tax planning and ensuring compliance. Here are some tips on how to utilise Form 26AS:

Verify Income: 

Form 26AS provides a consolidated view of your income from various sources. Utilise Form 26AS to verify your income in your Income Tax Return (ITR).

Check TDS Deductions: 

The form lists all the Tax Deducted at Source (TDS) linked to your PAN. Ensure these deductions are accurately reflected in your ITR.

Track Refunds: 

Any tax refunds issued by the IT department are recorded in Form 26AS. Keep track of these to ensure you're getting all the refunds.

Detect Discrepancies: 

Review your Form 26 AS regularly to detect discrepancies or mismatches in tax payments or deductions. Early detection can save you from potential penalties.

Maintain Compliance: 

Form 26AS is a vital tool for maintaining tax compliance. It helps you ensure that your tax payments, TDS, and income details align with the IT department's records.


Resolving Discrepancies in Form 26AS

If you find discrepancies in your Form 26AS, don’t panic. Here’s what you can do:

  1. Identify the Issue: Understand the nature of the discrepancy. It could be incorrect income details, TDS mismatch, or missing transactions.

  2. Contact the Deductor: If there’s a TDS mismatch, contact the deductor. They can correct the TDS details in the TDS return, which will be reflected in your Form 26AS, and help you resolve the tax issues.

  3. File a Grievance: If the deductor doesn’t resolve the tax issue, you can file a grievance on the Income Tax Department’s e-filing portal.

  4. Consult a Professional: If the discrepancies in Form 26AS are complex, consult a tax professional and get expert assistance.

Resolving these discrepancies before filing your Income Tax Return is crucial to avoid potential penalties. Always keep your Form 26AS handy while filing your return. It’s your primary tool for verifying your tax details.


Form 26AS vs. AIS vs TIS

Form 26AS vs. AIS vs TIS
Form 26AS vs. AIS vs TIS

FAQs:

Q1. What is Form 26AS, and why is it important?

Form 26AS is a consolidated tax statement issued by the Income Tax Department. It’s essential as it contains tax deducted, collected, and paid details, helping in accurate tax filing.


Q2. How can I download my Form 26AS from the TRACES website?

To download Form 26AS from TRACES, log in, navigate to ‘My Account,’ select ‘View Form 26AS’, confirm redirection, select the assessment year, and download the form.


Q3. What should I do if I find discrepancies in my Form 26AS?

If you find discrepancies in your Form 26AS, identify the issue, contact the deductor, file a grievance on the IT Department’s portal, or consult a tax professional.


Q4. How does Form 26AS help in tax planning and compliance?

Form 26AS helps in tax planning and compliance by providing a consolidated view of your income, TDS, and tax refunds. It aids in verifying income and detecting discrepancies.


Q5. Can I use Form 26AS to verify TDS on property transactions?

Yes, Form 26AS can be used to verify TDS on property transactions. It reflects details of tax deducted at source on property purchases.


Q6. What are the new additions to Form 26AS after the introduction of AIS?

After introducing AIS, Form 26AS now includes information about high-value transactions, foreign remittances, and tax-saving investments.


Q7. How often is Form 26AS updated?

Form 26AS is updated quarterly. However, TDS entries are updated after the deductor files the TDS return.


Q8. Is Form 26AS sufficient for filing my income tax return?

While Form 26AS is crucial for filing income tax returns, other documents like salary slips, bank statements, and investment proofs are also needed.


Q9. How can I resolve issues if my Form 26AS does not reflect the TDS deducted?

If Form 26AS doesn’t reflect the deducted TDS, contact the deductor to correct their TDS return. If unresolved, file a grievance on the IT Department’s portal.


Q10. What are the consequences of ignoring discrepancies in Form 26AS?

Ignoring discrepancies in Form 26AS can lead to incorrect tax filing, resulting in notices from the IT Department, penalties, or legal issues.


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