Form 26AS: A Complete Overview
Table of Contents
Introduction:
Taxation is a fundamental component of any country’s economy, and comprehending your tax obligations and entitlements is vital for effective financial planning. Form 26AS, commonly known as the Tax Credit Statement, plays a pivotal role in this process. It offers a comprehensive overview of your tax payments and eligible tax credits. This blog delves into the nuances of Form 26AS, providing you with a thorough understanding of its intricacies and guidance on how to download it.
Form 26AS:
Form 26AS serves as a consolidated tax statement, presenting the information regarding tax payments and tax credits linked to your PAN (Permanent Account Number). It functions as a comprehensive record of your tax-related financial activities, aiding you in verifying that the tax deducted from your income sources corresponds to the tax deposited with the government.
Importance of Form 26AS:
Tax credits listed in Part A, A1, and B of the Annual Tax Statement are derived from the information provided by the deductor in the TDS or TCS statement they filed. It’s essential to verify these details before claiming tax credits, ensuring that only the relevant amount is claimed. When reviewing Form 26AS alongside Form 16, Form 16A, and records of Advance Tax or Self Assessment Tax paid, focus on verifying specific details to ensure accuracy and alignment.
Details Present in Form 26AS:
Form 26AS provides a comprehensive summary of an individual’s or entity’s income, taxes deducted at source (TDS), taxes paid, and other relevant information. It typically encompasses the following details:
- Tax deducted by deductors on behalf of the taxpayer represents Tax Deducted at Source (TDS).
- Taxes deposited by the taxpayer in the form of Advance Tax and Self-Assessment Tax.
- Information regarding any tax demand issued by the tax authority.
- The details included in it serve as a consolidated tax record utilized by all deductors and collectors.
- Information concerning high-value financial transactions, including property, shares, mutual funds, and more.
- Annual Information Return (AIR) for high-value financial transactions provides detailed information regarding such transactions.
Structure of Form 26AS:
It is segmented into various sections, each tailored to different categories of financial transactions. These sections encompass:
Part A: Details of Tax Deducted at Source
This section displays the TDS deducted from your salary/pension income, as well as the TDS deducted by banks on your interest income. TDS deducted by each source is presented in a separate table. This section is further subdivided into two: Part A1 and Part A2.
Part A1:
Part A1 pertains to instances where low or no tax has been deducted, as indicated by Form 15G/15H.
Part A2:
Part A2 addresses TDS related to the sale of immovable property for the seller.
Part B:Part B addresses tax collected at source (TCS) by a collector.
Part C:This section delineates any additional taxes paid apart from TDS or TCS, including advance or self-assessment tax payments made by the individual.
Part D: This section pertains to refunds, providing details about any tax refund received during the financial year, such as TAN refund, ITR refund, 26QB refund, and more.
Part E: Part E contains details of high-value transactions, including mutual fund purchases, bonds, property transactions, and more.
Part F: This section provides details about TDS for the sale of immovable property for the buyer, and it also encompasses TDS on rent for tenants.
Part G: This section outlines any defaults related to TDS payments associated with an individual’s PAN card.
Part H:It includes information regarding the turnover reported as per GSTR-3B.
How to Download Form 26AS:
Form 26AS can be exclusively downloaded from the TRACES (TDS Reconciliation Analysis and Correction Enabling System) website. If you possess a TRACES login ID and password, you can simply access your TRACES account and directly download Form 26AS from the website.
Alternatively, you can access the income tax e-filing portal to download Form 26AS from TRACES. Below is a step-by-step guide to assist you in the downloading process:
- Navigate to the new Income Tax e-filing portal and sign in to your Income Tax e-filing account using your registered user ID and password.
- On the Dashboard page, locate and click on the “e-File” link positioned at the top of the page.
- Navigate to the “Income Tax Return” menu under e-File, and then proceed to click on “View Form 26AS”.
- Click on “Confirm” to be redirected to the TRACES website, where you will need to agree to the terms and conditions for using the website.
- Click on “View Tax Credit (Form 26AS/Annual Tax Statement).”
- Select the assessment year and choose your preferred file type (HTML or Text). If you wish to view all TDS transactions, opt for “HTML” and click on “View/Download.”
- Following these steps, you can access all your TDS transactions and then click on “Export as PDF” to download the PDF file.
Importance of Form 26AS:
Income Tax Form 26AS stands as one of the most vital financial documents for individuals during tax filing. It encapsulates all tax-related details, akin to a passbook for your taxes. Utilize the data within Form 26AS to compute your tax liability using any tax calculator.
- Form 26AS serves as a means to verify tax credits and ensure the accuracy of your Income Tax Return (ITR) filing.
- It offers a comprehensive overview of TDS, TCS, refunds, advance taxes, and other related aspects.
- It also aids the tax deductor in verifying whether you have filed your returns correctly and on time.
- Furthermore, it reflects high-value transactions and investments such as mutual fund investments, bond investments, property sales, etc., which need to be accounted for while filing taxes. It is imperative that all the claims in Form 26AS align with the taxes in your ITR. In case of discrepancies, the Income Tax Department might request clarification, making Form 26AS invaluable in such situations.
Points to Remember for Form 26AS:
Before filing the downloaded Form 26AS income tax statement, it’s important to consider the following points:
- First, make sure to download the Form 26AS for the current year along with the tax returns from the previous year.
- Ensure that you correctly determine your residential status. For non-resident Indians (NRIs), global income may be taxable in India. If you have resided in India for over 180 days and only made trips abroad, you will qualify as a resident for tax purposes.
- Make sure to accurately determine your residential status. Non-resident Indians (NRIs) should be aware that their global income may be taxable in India. If you have stayed in India for over 180 days and only made occasional trips abroad, you will qualify as a resident for tax purposes.
- In addition to Form 26AS, you will also need other documents such as Form 16, rental agreements or receipts, bank statements, loan details, investment records, and more. These documents can assist in cross-verifying the tax information.
Conclusion:
Form 26AS stands as a testament to the digitization of tax-related information and the simplification of the taxpayer’s journey. It serves as a mirror reflecting your tax-related activities, enabling you to identify discrepancies, claim rightful credits, and plan your financial activities more efficiently. Understanding the nuances of Form 26AS empowers you to take control of your tax obligations, ultimately contributing to your financial well-being.