Form 26AS statement

Form 26AS is an essential document for taxpayers in India, offering a consolidated view of tax-related information. It plays a pivotal role in simplifying the process of filing income tax returns (ITR) and ensuring tax compliance.

In this blog, we will explore:

• What is Form 26AS?
• The uses of Form 26AS
• Components of form 26AS
• Step-by-step guidance on downloading Form 26AS from the Income Tax Portal
• A concise summary
• Frequently Asked Questions (FAQs)

What is Form 26AS?

Form 26AS, also known as the Annual Statement, is a consolidated tax statement issued by the Income Tax Department. It contains details of:

1. Tax Deducted at Source (TDS): Tax deducted by employers, banks, or other entities on your income.
2. Tax Collected at Source (TCS): Tax collected on certain transactions, such as the purchase of specific goods.
3. Advance Tax and Self-Assessment Tax Payments: Direct taxes paid by you.
4. Refunds: Any income tax refunds issued during the financial year.
5. High-Value Transactions: Information about transactions exceeding certain thresholds.

This document serves as a comprehensive record of taxes paid and credited against your PAN for a specific financial year.

Uses of Form 26AS

1. Accurate ITR Filing: Helps ensure that the tax details entered in your ITR match the Income Tax Department’s records.
2. Avoiding Double Taxation: Verifies tax deducted and deposited by third parties to avoid discrepancies.
3. Tax Refunds Tracking: Helps identify any pending or processed refunds.
4. Compliance Check: Useful for verifying tax compliance for loans, visa applications, or financial assessments.
5. Dispute Resolution: Assists in resolving discrepancies related to tax credits or payments.

Components of Form 26AS

Form 26AS contains various sections that provide a clear and detailed picture of the taxes paid or deducted on your behalf during the financial year. Here’s an in-depth look at the main components of Form 26AS:

1. Personal Information

At the top of Form 26AS, you’ll find personal details, such as:

• PAN (Permanent Account Number): Your unique identification number for tax purposes.
• Name: Your full name as per the Income Tax Department’s records.
• Assessment Year (AY): The year for which taxes are assessed, typically one year after the financial year.

2. Part A: Tax Deducted at Source (TDS)

This section provides a summary of all the TDS transactions made by different deductors, such as your employer, banks, or any other financial institution that has deducted tax on your income. The following details are included in Part A:

• Deductor Information: Name and TAN (Tax Deduction and Collection Account Number) of the deductor.
• Amount of Tax Deducted: The total amount of tax deducted at source by the deductor(s).
• Date of Deduction: The date when TDS was deducted.
• TDS Credit: The amount of TDS credited against your PAN.

This section is particularly important for cross-checking if the TDS mentioned in your income tax return (ITR) matches with the TDS recorded by the Income Tax Department.

3. Part B: Tax Collected at Source (TCS)

Similar to TDS, TCS refers to the tax collected by sellers or service providers at the time of sale. This part will display:

• Seller Information: The name and TAN of the seller or service provider collecting TCS.
• Amount of Tax Collected: The amount of tax collected on transactions such as the purchase of specified goods.
• TCS Credit: The total amount of TCS credited to your PAN.

4. Part C: Details of Tax Paid (Advance Tax and Self-Assessment Tax)

Part C gives a breakdown of any advance tax and self-assessment tax payments made by you. This section will show:

• Advance Tax Paid: Payments made by you towards advance tax, either in installments or in a lump sum, based on your estimated annual tax liability.
• Self-Assessment Tax Paid: Tax paid after filing the income tax return if the balance tax liability is not covered by TDS or advance tax.
• Challan Details: The tax payment challans, including the payment dates, BSR codes, and amounts paid.

This section is crucial to confirm that all your advance or self-assessment tax payments are accounted for.

5. Part D: Refunds

This part of Form 26AS provides details of any refunds issued by the Income Tax Department to you, including:

• Refund Amount: The amount of refund issued for the assessment year.
• Refund Status: Whether the refund has been processed or is still pending.
• Refund Issuance Date: The date when the refund was issued or credited to your bank account.

6. Part E: Details of High-Value Transactions

The Income Tax Department monitors certain high-value transactions and reports them in Form 26AS, such as:

• Property Transactions: Details of property sales or purchases exceeding a specified threshold.
• Deposits in Banks: Large deposits made in your bank account.
• Other High-Value Transactions: Transactions that fall under the purview of reporting under the Income Tax Act.

This section helps taxpayers ensure that all major financial transactions have been properly reported and are in line with their tax filings.

7. Part F: Information Related to 195 (B) & 195 (C)

This part provides details about specific transactions subject to TDS under Sections 195 (B) and 195 (C). It generally deals with transactions involving foreign remittances and payments made to non-residents, such as:

• Payment to Non-Residents: TDS deducted on income payments made to foreign entities.
• Cross-Border Taxation: Details regarding tax obligations on payments for services or goods crossing borders.

How to Download Form 26AS from the Income Tax Portal

Follow these steps to download Form 26AS:

Step 1: Log in to the Income Tax Portal

• Visit the Income Tax e-filing portal.
• Use your PAN and password to log in.

Step 2: Navigate to Form 26AS

• Go to the “e-File” menu.
• Select “View Form 26AS” under the “Income Tax Returns” section.

Step 3: Access Form 26AS via TRACES

• You will be redirected to the TRACES portal.
• Agree to the disclaimer and click “Proceed.”

Step 4: View and Download Form 26AS

• Select the relevant Assessment Year (AY).
• Choose the format (HTML, PDF, or text).
• Click “Download.” Ensure you have Adobe Reader or compatible software to view the PDF.

Summary

Form 26AS is an indispensable tool for taxpayers to monitor their tax credits and compliance. It ensures a seamless ITR filing experience by providing a consolidated record of taxes deducted, collected, or paid. Regularly reviewing Form 26AS can help you detect and resolve discrepancies early.

Frequently Asked Questions (FAQs)

1. Is Form 26AS mandatory for filing ITR?

While not mandatory, it is highly recommended to cross-check your ITR details with Form 26AS to ensure accuracy.

2. Can Form 26AS be accessed offline?

No, Form 26AS can only be accessed online through the Income Tax Portal.

3. What if there is a discrepancy in Form 26AS?

In case of a mismatch, contact the deductor (e.g., your employer) to ensure they have filed the correct TDS returns.

4. How often is Form 26AS updated?

Form 26AS is updated whenever there is a tax-related transaction, such as TDS payments or refunds.

5. Can I download Form 26AS for multiple years?

Yes, you can download Form 26AS for multiple assessment years from the Income Tax Portal.

Related Blog Posts

• How to File Income Tax Returns Online in India
• Understanding TDS and How It Affects Your Income
• A Beginner’s Guide to Advance Tax Payments