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Understanding Form 26AS: Your Complete Tax Credit Statement

What is important to know about Form 26AS and how can you access it?

Form 26AS is an essential statement that provides taxpayers with detailed information about various deductions, such as Tax Deducted at Source (TDS) or Tax Collected at Source (TCS), from their different sources of income. It also includes records of advance tax or self-assessment tax payments, as well as high-value transactions they have entered into. This document is crucial for accurately filing your Income Tax Return (ITR) and ensuring that your tax credits align correctly, avoiding any discrepancies or mismatches

Form 26AS serves as a comprehensive statement that offers a holistic view of your tax profile. It enables you to file your ITR accurately and on time. By reviewing this document, you can verify your tax payments, deductions, and transactions. Should you spot any discrepancies, you have the opportunity to rectify them before filing your ITR, ensuring a smooth and error-free process.

How Form 26AS Simplifies Tax Compliance and Enhances Accuracy

Form 26AS offers numerous benefits for taxpayers, ensuring a smoother and more accurate tax compliance process. Let’s understand some of the advantages it provides:

  • Track Taxes Paid: Form 26AS helps you keep track of all the taxes paid by you or on your behalf throughout the financial year. It consolidates details of income tax deducted at source (TDS), advance tax, self-assessment tax, and other tax payments, providing a comprehensive view of your tax liabilities.

  • Avoid Mismatches and Penalties: By reviewing Form 26AS, you can detect and rectify any discrepancies or mismatches in your tax credits. This proactive approach prevents receiving demands or penalties from the income tax department, as you can ensure that the taxes deducted from your income are accurately credited.

  • Claim Correct Tax Refunds: Form 26AS serves as a reliable reference when claiming tax refunds. It provides you with an overview of the taxes you have paid, ensuring that you claim the correct refund amount, if applicable. This reduces the chances of missing out on any entitled refunds.

  • Accurate Reporting in ITR: Form 26AS acts as a reliable source of information when reporting your income and transactions in your Income Tax Return (ITR). By referring to this consolidated statement, you can report all your incomes and transactions accurately, avoiding any under-reporting or concealment of income. This ensures compliance with tax laws and regulations.

  • Compliance and Legal Protection: Form 26AS helps you comply with income tax laws and regulations. By accurately reporting your tax-related information based on the details provided in Form 26AS, you minimize the risk of non-compliance, reducing the likelihood of litigation or prosecution.

How to Access and Utilize Form 26AS

Form 26AS serves as a crucial tax credit statement that provides a comprehensive overview of the taxes paid by taxpayers. It includes details of various tax payments, such as income tax deducted at source (TDS), advance tax, self-assessment tax, and more. This document plays a vital role in the process of filing your Income Tax Return (ITR) as it helps verify your tax credits and ensures accuracy to prevent any discrepancies or mismatches.

Accessing and downloading Form 26AS is a simple process. To assist you, here is a comprehensive step-by-step guide:

  1. Log on to the e-Filing portal of the Income Tax Department: Using your PAN number and password, access the e-Filing portal provided by the Income Tax Department.

  2. Navigate to the ‘My Account’ menu: Once logged in, locate the ‘My Account’ menu and click on the ‘View Form 26AS (Tax Credit)’ link.

  3. Read and confirm the disclaimer: You will come across a disclaimer; make sure to read it carefully and then click on ‘Confirm.’ This action will redirect you to the TDS-CPC portal.

  4. Agree to the terms and conditions: Within the TDS-CPC portal, you will need to agree to the terms and conditions before proceeding. After completing the necessary steps, proceed by clicking on the Proceed button.

  5. Select assessment year and view type: Now, click on ‘View Tax Credit (Form 26AS)’ and choose the desired assessment year and view type (HTML, Text, or PDF).

  6. View or download Form 26AS: Finally, click on ‘View/Download’ to access and review your Form 26AS.

Apart from the e-Filing portal, you can also view your Form 26AS through other channels, such as net banking, the TRACES website, or a mobile app. These alternate methods provide convenience and flexibility in accessing your tax credit statement.



Different Parts of Form 26AS

Form 26AS is a valuable statement that provides a comprehensive overview of a taxpayer’s tax-related information. Form 26AS encompasses information about various types of taxes, such as income tax deducted at source (TDS), advance tax, self-assessment tax, and other payments made by the taxpayer. This document is crucial for accurate filing of the Income Tax Return (ITR) as it helps verify tax credits and prevents any mismatches or discrepancies.

Let’s dive into the different parts of Form 26AS and what each section entails:

  • Part A: This section displays details of TDS deducted from various sources such as your salary, interest income, pension income, and winnings. It includes information about the deductors (employers, banks, companies), the amount of income paid, TDS deducted and deposited, and the date of deposit.

  • Part A1: Part A1 showcases details of TDS deductions when you have submitted Form 15G or Form 15H, indicating that you are not liable to pay tax on your income. It includes the name and TAN of the deductors, the income amount paid to you, and the TDS deducted and deposited.

  • Part A2: Part A2 focuses on TDS deductions related to the sale or rent of immovable property and payments to resident contractors and professionals. It highlights the buyers’ or tenants’ or payers’ name and PAN, income paid to you, and TDS deducted and deposited.

  • Part B: Part B provides information on tax collected at source (TCS) from your income by various collectors, such as sellers of goods or services. It includes the collectors’ TAN, the income amount received by you, the TCS collected and deposited, and the date of deposit.

  • Part C: This section covers tax payments made by you, excluding TDS or TCS. It encompasses advance tax, self-assessment tax, regular assessment tax, etc. It includes the BSR code of the bank branch, challan serial number, tax amount paid, and the date of deposit.

  • Part D: Part D highlights details of refunds issued to you by the income tax department during the financial year. It includes the assessment year, mode of payment (cheque or electronic transfer), refund amount, and the date of payment.

  • Part E: Part E focuses on specified financial transactions (SFT), such as high-value transactions reported by various entities. These transactions include purchases or sales of shares, mutual funds, immovable property, etc., exceeding a specific threshold. It includes the entities’ name and PAN, transaction type and value, and the transaction date.

  • Part F: This section showcases tax deducted by you on payments made for the sale or rent of immovable property or to resident contractors and professionals. It includes your name and PAN as the deductor, their name and PAN as the deductee, address details, contact details, email ID, and additional information.

  • Part G: Part G reveals any TDS defaults made by the deductors during the year. This includes instances such as short deduction, late deduction, interest, penalty, etc. It features the deductors’ TAN, the type and amount of defaults, and the reasons for the defaults.

  • Part H: Part H provides details of your turnover as per GST returns filed under GSTR-3B. It includes your GSTIN, trade name/legal name, address details, contact information, and turnover figures for each month and the entire year



Utilizing Form 26AS for Smooth ITR Filing: Step-by-Step Guide

Form 26AS is a statement that offers a comprehensive overview of the taxes paid by a taxpayer. It includes crucial details such as income tax deducted at source (TDS), advance tax, self-assessment tax, and other tax payments made by the taxpayer. This document holds significant importance when it comes to filing your Income Tax Return (ITR), as it helps verify your tax credits and ensures there are no discrepancies or mismatches.

To make the most of Form 26AS when filing your ITR, follow these steps:

  • Log on to the e-Filing portal of the Income Tax Department: Access the e-Filing portal provided by the Income Tax Department and log in using your PAN number and password.

  • Navigate to the ‘My Account’ menu: Once logged in, locate the ‘My Account’ menu and click on the ‘View Form 26AS (Tax Credit)’ link.

  • Read and confirm the disclaimer: Take a moment to read the disclaimer carefully, and upon understanding the terms, click on ‘Confirm’. This action will redirect you to the TDS-CPC portal.

  • Agree to the terms and conditions: Within the TDS-CPC portal, agree to the terms and conditions presented, and click on ‘Proceed’.

  • Select assessment year and view type: Click on ‘View Tax Credit (Form 26AS)’ and choose the desired assessment year and view type, which can be HTML, Text, or PDF.

  • View or download Form 26AS: Finally, click on ‘View/Download’ to access and review your Form 26AS.

Once you have obtained your Form 26AS, it’s time to compare the details of TDS, TCS, tax payments, and refunds with your own records and income sources. Ensure there are no discrepancies or errors in the amounts or transaction dates.

If you notice any discrepancies or errors, it is important to take necessary action. Contact the deductor, collector, or the income tax department to rectify the information before filing your ITR.

Next, utilize the information present in Form 26AS to fill in the relevant fields of your ITR form accurately.

For instance, Part A of Form 26AS can be used to fill in the details of TDS from salary, interest income, etc., in Schedule TDS1 of the ITR-1 form. Part B can be utilized to fill in the details of TCS from the sale of goods or services in Schedule TCS of the ITR-1 form. Part C enables you to report details of advance tax, self-assessment tax, etc., in Schedule IT of the ITR-1 form.

Part E is dedicated to reporting specified financial transactions, such as the purchase or sale of shares, mutual funds, immovable property, etc., which can be recorded in Schedule SFT of the ITR-1 form.

Once you have filled in all the required fields of your ITR form, it is essential to thoroughly review your tax computation and submit your ITR online with confidence.



How to Verify TDS Certificates with Form 26AS on TRACES

TDS certificates play a vital role in validating the TDS deductions made from your income by deductors such as employers, banks, and companies. These certificates, issued in various forms like Form 16, Form 16A, Form 16B, and Form 16C, provide details of the deducted TDS amounts deposited on your behalf.

To verify the accuracy of TDS certificates issued by your deductors, you can utilize the TRACES portal of the Income Tax Department. TRACES is an online application called TDS Reconciliation Analysis and Correction Enabling System. It provides users with the ability to access and download their Form 26AS. Form 26AS is a consolidated tax credit statement that displays all the taxes paid by you or on your behalf.

Form 26AS contains specific details regarding TDS deductions made by various deductors and the corresponding TAN (Tax Deduction and Collection Account Number) assigned to them for TDS deductions and deposits. By comparing the TDS information presented in Form 26AS with the TDS certificates received from your deductors, you can validate the accuracy of these certificates. Matching details indicate that the TDS certificates are valid and correct, while discrepancies may suggest errors or inconsistencies.

To verify TDS certificates on TRACES, follow these steps:

  • Log in to the e-Filing portal of the Income Tax Department using your PAN and password.
  • Navigate to the ‘My Account’ menu and select the ‘View Form 26AS (Tax Credit)’ link.
  • Read and confirm the provided disclaimer, and you will be redirected to the TRACES portal.
  • Agree to the terms and conditions within the TRACES portal and proceed further.
  • Click on ‘View/Verify Tax Credit (Form 26AS)’ and choose the desired assessment year and view type (HTML, Text, or PDF).
  • Click on ‘View/Download’ to access your Form 26AS.
  • Compare the TDS details in Form 26AS with those mentioned in the TDS certificates from your deductors. Ensure there are no discrepancies or errors in the transaction amounts or dates.
  • If you detect any discrepancies or errors, promptly contact the respective deductor, collector, or the income tax department to rectify the issue before filing your ITR.

TRACES also provides an additional option called ‘Verify TDS Certificate’ to verify TDS certificates. Follow these steps to utilize this feature:

  • Log in to the TRACES portal using your PAN and password.
  • Under the ‘View/Verify Tax Credit’ menu, click on ‘Verify TDS Certificate’.
  • Enter the captcha code and proceed.
  • Fill in the required details from your TDS certificate, such as the deductor’s TAN, TDS certificate number, assessment year, source of income, and the TDS amount deducted as per the certificate.
  • Click on ‘Validate’.
  • The system will display a message indicating whether the TDS certificate is valid or not

Reconciling Form 26AS with Your Income Tax Return (ITR)

Reconciling the income and transactions reflected in Form 26AS with your ITR is a crucial step to ensure accurate reporting of your income sources and the appropriate utilization of tax credits available to you. This process helps prevent discrepancies that may lead to notices from the income tax department or delays in refund processing.

Form 26AS provides a comprehensive overview of the taxes paid by you or on your behalf. It encompasses details such as income tax deducted at source (TDS), advance tax, self-assessment tax, and other tax payments made by you. It also displays information about specified financial transactions (SFT) involving the purchase or sale of shares, mutual funds, immovable property, and more, that you have engaged in during the financial year.

To reconcile your income and transactions presented in Form 26AS with your ITR, consider the following steps:

  1. Log in to the e-Filing portal of the Income Tax Department using your PAN and password.

  1. Access the ‘My Account’ menu and click on the ‘View Form 26AS (Tax Credit)’ link.

  2. Read and confirm the provided disclaimer, which redirects you to the TDS-CPC portal.

  3. Agree to the terms and conditions within the TDS-CPC portal and proceed.

  4. Select the option ‘View Tax Credit (Form 26AS)’ and choose the assessment year and preferred view format (HTML, PDF or text).

  5. Click on ‘View/Download’ to access your Form 26AS.

  6. Compare the details of TDS, TCS, tax payments, refunds, and SFT presented in Form 26AS with your personal records and income sources. Ensure there are no discrepancies or errors in the transaction amounts or dates.

  7. If you identify any discrepancies or errors, promptly contact the relevant deductor, collector, bank, or the income tax department to rectify the issue before filing your ITR. Alternatively, you can submit an online grievance on the e-Nivaran portal of the income tax department.
  8. Utilize the information contained in Form 26AS to accurately complete the relevant sections of your ITR form. For instance, Part A of Form 26AS can assist in filling out TDS details from salary, interest income, etc., in Schedule TDS1 of ITR-1 form. Part B can be used to report TCS details from the sale of goods or services in Schedule TCS of ITR-1 form. Part C aids in providing details about advance tax, self-assessment tax, etc., in Schedule IT of ITR-1 form. Part E is helpful for reporting specified financial transactions, such as share or property transactions, in Schedule SFT of ITR-1 form.

  9. After accurately filling in all the necessary fields of your ITR form, verify your tax computation and submit your ITR online.



Updating or correcting your personal details in Form 26AS, such as PAN, name, address, and more, involves the following steps:

  1. Visit the NSDL website and select the ‘Online PAN Application’ option.

  2. Choose ‘Changes or Correction in existing PAN Data/Reprint of PAN Card (No changes in existing PAN Data)’ from the provided drop-down menu.

  3. Complete the online application form by providing the necessary details and upload supporting documents like proof of identity, proof of address, proof of date of birth, etc.

  4. Make the required payment online using debit card, credit card, net banking, or other available payment methods.

  5. Submit the application form and make a note of the acknowledgement number for future reference.

  6. You will receive an email confirmation from NSDL containing a link to track your application status.

  7. Once your application is processed and approved, you will receive a new PAN card with the updated details within approximately 15 day

Conclusion:
Understanding and utilizing Form 26AS is crucial for accurate tax compliance. By accessing and reviewing this comprehensive tax credit statement, taxpayers can track taxes paid, avoid mismatches, claim refunds correctly, and ensure accurate reporting in their Income Tax Return (ITR). Reconciling Form 26AS with the ITR is essential to prevent notices and delays, while updating personal details ensures accurate documentation. With the information and steps provided, taxpayers can simplify tax compliance and enhance accuracy, leading to a smoother filing process and legal protection.

What is Form 26AS?

Form 26AS is a comprehensive tax statement provided to individuals holding a PAN card as per the regulations specified in Rule 31 AB of the Income Tax Rules. It provides details of TDS, TCS, refunds received during the financial year, and other related information.

How can I download Form 26AS?

You can download Form 26AS by logging into the TRACES website using your PAN number and password.

What is the use of Form 26AS?

Form 26AS is used to verify whether the tax deducted from your income has been deposited with the government. It also helps in filing your income tax return accurately.

How can I view Form 26AS?

You can view Form 26AS by logging into the TRACES website using your PAN number and password.

What details are available in Form 26AS?

Form 26AS contains information about TDS, TCS, refunds received during the financial year, and other related information.

Could you please explain the dissimilarities between Form 16 and Form 26AS?

Form 16 is a certificate issued by an employer containing details of salary and tax deducted. Form 26AS is a consolidated tax statement including TDS, TCS, refunds received during the financial year, and other related information.

How can I check my TDS status online?

You can check your TDS status online by logging into the TRACES website using your PAN number and password.

What is the penalty for non-filing of return?

If you fail to file your income tax return on time, you may be liable to pay a penalty of up to Rs. 10,000.

How can I rectify my return under section 139(9)?

You can rectify your return under section 139(9) by filing a revised return.

In case of non-compliance with the provisions related to PAN, what are the penalties imposed?

Not complying with the provisions relating to PAN may result in a penalty of Rs. 10,000.

What is Advance Tax?

Advance Tax is the tax paid by individuals on their estimated income before the end of the financial year.

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