Unlocking The Secrets Of Form 26AS: Your Tax Passport

Form 26AS is a crucial document that assists individuals in fulfilling their tax obligations during the process of filing Income Tax Returns (ITR).

Taxpayers need to fully understand this form to file tax returns effectively. This requires knowledge about the form itself and its role in the whole filing process.

This article will help you learn more about Form 26AS, its contents, and how to download it. 

Information Available On Form 26AS

Form 26AS is a summary of tax-related information linked to your PAN details, including total income received, tax deducted at source (TDS), advance tax paid, and tax collector details. It contains cases of completed or pending proceedings in addition to tax refunds and high-value transactions. 

Here is a simplified breakdown of this form:

• TDS and TCS: It indicates any tax deposited by someone on your behalf TDS and any tax that you may have collected from someone on their behalf (TCS).
• Tax Payments: It includes items like self-assessment tax payments made by you or money deposited as advance tax.
• Refunds: This section entails all refunds made from the Income Tax Department in Form 26 AS.
• Tax Demand: Formal documentation detailing a taxpayer’s or business’s tax obligations.
• High-Value Transactions: These transactions cover a wide range of financial deals, including immovable properties, securities like shares and debentures, mutual funds, etc.
• Consolidated Record: All deductors/collectors shall use it as a consolidated record for deducting income-tax from salary/wages or other payments on which they are liable to deduction.

Structure Of Form 26AS From FY 2022-23 And Onwards

Part I - Details of TDS form 26 AS: This part covers TDS on various types of income, such as salary, business, professional and interest incomes. It is updated on a quarterly basis and provides the information about the tax deductor as well.

Part II - Details of TDS for 15G/15H: It gives an account of cases where there was no deduction on account of tax (TDS) being submitted in Form 15G or 15H. These are mainly forms for the elderly who earn below the minimum exemption limit.

Part III - Transaction information under the proviso to Section 194B/194R/194S: This part includes TDS paid in kind (e.g., winning a car in a lottery, or taking a trip abroad to meet sales targets).

Part IV - Details of TDS under section 194IA/194IB/194M/194S: It deals with TDS regarding the sale of purchased property, rent exceeding INR 50 thousand per month, contractor/professional payment of more than INR 50 lakh and selling virtual digital assets (like cryptocurrency)¹.

Part V - Transaction information under the proviso to Section 194S: This relates to the specific tax deductions available to sellers who deal with virtual digital assets.

Part VI - Details TCS: This includes TCS performed under various 206C sections.

Part VII - Details of paid refund: In this segment information about refunds paid by the Income Tax Department which were sourced from CPC TDS is shared.

Part VIII - Details of TDS under section 194IA/194IB/194M/194S: It has information about buyers paying TDS concerning house property purchases, payments made to contractors, and purchases of virtual digital assets.

Part IX –Details of transaction/demand payments under proviso to Section 194S: This section applies to the purchaser of virtual digital assets and their transaction details.

Part X - TDS/TCS defaults (statement processing): It displays TDS defaults following the processing of TDS returns, but it does not include demands made by evaluating officers.

Structure Of Form 26AS Till FY 2021-22

How To View Form 26AS?

Form 26AS is available through the TRACES portal and certain authorised banks' net banking services.

How To Download Form 26AS From TRACES?

If you are wondering where to get Form 26AS from, here are some steps on how to download and view Form 26AS from the TRACES website³.

• Income Tax e-filing website: Visit the Income Tax e-filing website to begin the process.

• Log in: Provide your password and user ID (PAN or Aadhaar number).

• Form 26AS: After clicking ‘E-file,’ go to ‘Income Tax Returns’. After that, click on ‘View Form 26AS.’

• Accept Disclaimer: You should accept this disclaimer before you are redirected to the TRACES website.

• Proceed on TRACES: Tick the box on TRACES’ homepage and click “Continue.”

• View or Download: Open “View Tax Credit (Form 26AS)” by clicking it, then choose an assessment year. It is available for online viewing in HTML or for downloading as a PDF file.

• Form 26 AS verification: Enter the verification code after selecting your option, then press “View/Download.”

How To View Form 26AS From A Net Banking Facility?

This service can be availed by a PAN card holder possessing a bank account accessible through net banking from any of the authorised banks. A view of your Form 26AS can only be obtained if you have linked your PAN to that account. It is available without any charges. 

Currently, there are 28 authorised banks authorised for tax payments (as of July 2024). The list is very dynamic in nature.

How Do You Use The Income Tax Department’s E-Filing Website?

Use your PAN number to register or log in to the e-filing website to begin the process of e-filing³. If you have e-filed before, check your email for relevant information. Once logged in, you can handle income tax-related tasks.

Find more about the Income Tax Act: Section 24 of Income Tax Act: Deduction for Home Owners 

New Form 26AS Effective From June 1 2020

As of June 1, 2020, taxpayers' data is available in a new form - Form 26AS⁵.

Benefits of Form 26AS

1. Tax Transaction Record: Under the Income Tax Act, Form 26AS is a document that provides information on details of tax deducted or collected and deposited with tax authorities by authorised entities.
2. Summary Statement Of Transactions: It helps you to have access to all financial transactions concerning TDS or TCS applicable for the relevant financial year.
3. Income Computation: This paper assists in computing your income and helps when claiming tax credits while filing your ITR.
4. Refund Verification: With this form, you can also check the refund status relating to any particular fiscal year or assessment year.

What Is An Annual Information Statement (AIS)?

An annual information statement (AIS) is a thorough overview of the data presented in Form 26AS for a taxpayer. Taxpayers can comment on data that is shown in AIS. Under each section, AIS displays the reported value as well as the modified value—that is, the value after taking taxpayer feedback into account.

Benefits of Annual Information Statement (AIS)

The AIS simplifies ITR filing by providing comprehensive details in one statement. Taxpayers can verify information, correct discrepancies, and reduce tax-related issues.

TDS Certificate (Form 16/16A) and Form 26AS

Things To Verify In The TDS Certificate With Form 26AS

1. Verify Details:

• Verify that the amounts for your refund, TDS, deductor's tax deduction and collection account number (TAN), permanent account number (PAN), and name match exactly by doing a cross-check.
• To avoid any problem while filing the income tax return by the assessee.

2. TDS Amount Verification:

• Make sure the TDS reflected on your TDS certificate (Form 16/16A) has been submitted to the government.
• Crosscheck the information contained on Form 26AS with what is indicated on your payslips for TDS computations.
• The situation should be made right by contacting the organisation that carried out this deduction in case they have failed to submit their TDS.

3. Form 16/16A vs. Form 26AS:

• Ensure that Form 26AS contains figures which tally with those appearing in Forms 16/16A.
• If not, it means that the tax was taken out but not deposited by the person who deducted it.

4. Address Discrepancies Promptly:

• Please communicate any mismatch immediately to your employer.
• Ensure that both yourself and the deductor do not face problems due to the wrong filing of your PAN data regarding TDS.

Bottomline

Form 26AS in IT links taxpayers and the income tax department and thus makes e-filing possible. This is a significant tool needed for keeping accurate financial records, claiming tax credits and ensuring compliance with revenue requirements.

To avoid potential issues arising out of their obligation to pay taxes all this information provided in Form 26AS must be analysed carefully by taxpayers.

Ensure accurate tax filing with our expert guide on Form 26AS. Discover investment opportunities with Grip Invest today!

Frequently Asked Questions On Form 26AS

1. What is the purpose of Form 26AS?

Form 26AS is meant to provide a single statement showing all taxes that have been deducted or collected on behalf of the taxpayer by different deductors. This includes both the TDS on salaries, interests and other incomes, as well as the TCS on sales. Form 26AS also captures information on advance tax/self-assessment tax paid, refunds issued and high-value transactions.

2. Why is my Form 26AS empty?

Your Form 26AS may be empty if no TDS or TCS has been deducted or collected on your behalf by any deductor or collector during the specified period. Another possibility could be that there are no reportable transactions under Statement of Financial Transactions (SFT) involving high-value financial transactions or that you have not filed any return form concerning which refund/ demand exists.

References:

1. Income Tax Department <https://tinyurl.com/37ne3x9m> 
2. Traces <https://tinyurl.com/mu8f62jh> 
3. Income Tax Department <https://tinyurl.com/evhst9tu> 
4. The Economic Times <https://tinyurl.com/39jep9x3> 
5. Deloitte <https://tinyurl.com/mrykxzs6> 

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