Filing ITR involves a host of documents, which substantiate a person’s tax liability. One such critical piece of document is Form 26AS. It is essential to be thoroughly versed in the details pertaining to this particular form to see through tax return filing efficiently. And that includes not only learning about what it is but also what purpose it serves in the whole process.
What is Form 26AS?
It’s an annual consolidated credit statement, containing information on direct taxes that a person has already paid to the government. Every taxpayer can access their Form 26AS via the Income Tax Department’s official website by using their Permanent Account Number or PAN.
Form 26AS includes every transaction where tax has been deducted on a person’s income, be it by their employer or a bank, advance taxes paid by the individual, and also details of any refund during the year.
In other words, Income Tax Form 26AS acts a ledger of all taxes paid and refunds received during a specific Assessment Year. Hence, it is crucial when filing Income Tax Returns. By means of this document, it is ensured that accurate taxes have been deducted from a person’s income and deposited into the government’s account.
How to View Form 26AS?
Taxpayers can view and download Form 26AS via two means – namely, the TRACES website or net banking. However, not all banks provide the facility. Individuals can initiate Form 26AS download through TRACES by following the steps mentioned below –
Step 1 – Login
First, one needs to login to the IT Department’s official account. In case a person doesn’t have an account already, they need to register themselves to the website.
In order to log in, the taxpayer needs to provide their PAN, which acts as the user ID, alongside password, and Captcha code.
Step 2 – Visit TRACES
Following login, the user should click on “View Form 26AS (Tax credit)” option from the drop-down options available under “My Account” on the dashboard.
On the subsequent page, the person will need to click on “Confirm” to be redirected to the TRACES website or TPS-CDC, which is also a government portal.
Step 3 – View Form 26AS
Upon being redirected, the individual needs to click on the “View Tax Credit (Form 26AS)” link. Here, the user is required to provide the Assessment Year and also the format in which to view the document.
To see it in PDF format or online, the person shall select “HTML” from the drop-down options under “View as”. For text-format, they should choose the option “Text”. Lastly, the user will need to input a verification code before clicking “View/Download”.
Once such a file is downloaded, the individual can view the document.
What are the Contents of Form 26AS?
All pieces of information featuring in Form 26AS are categorised into 7 different sections, from Part A to Part G. These have been discussed in the below-mentioned pointers.
1. Tax Deducted at Source
Part A comprises transaction-wise details of tax deductions at source on a taxpayer’s salary, interest income, prize winnings, etc. Various entities deduct taxes when remitting or crediting any payment on behalf of such recipient. Part A discloses details of such deductors along with the amount and date of corresponding transactions. It’s presented in the following manner.
|Serial no.||Name of deductor||TAN of deductor||Total amount paid/credited (Rs.)||Total tax deducted (Rs.)||Total TDS Deposited (Rs.)|
|Serial no.||Section||Transaction date||Status of booking||Date of booking||Remarks||Amount paid/credited (Rs.)||Tax deducted (Rs.)||TDS deposited (Rs.)|
Here, the section denotes the category of deduction. According to the Income Tax Act, 1961, there are six sections:
- 194J – Professional and technical services fee
- 192 – Salary
- 194H – Commission on brokerage
- 194 – Dividends
- 194D – Insurance commission
- 193 – Interest on securities
When filing ITR, individuals can verify whether all the transactions are accurate. In case they find any discrepancy, it’s essential to notify the deductor of it for rectifications.
Part A also comprises two subsections:
Part A1 – TDS details against Form 15G/H
Individuals can submit Form 15G/H with a financial institution to ensure it does not deduct TDS on their interest income on term deposits. This subsection contains such information.
Part A2 – TDS details on the sale of immovable properties
TDS is applicable on sale of immovable properties, like land or real estate. Part A2 of the 26AS statement captures this information as per Section 194(IA) of the Income Tax Act, 1961.
2. Tax Collected at Source
Sellers or dealers of certain goods need to collect tax from a buyer/payer and deposit with the Government’s Treasury on their behalf. For instance, if one purchases a car worth more than Rs.10 lakh, it requires the buyer to pay a 1% TCS. This and other information of such nature will be captured in this section, i.e. Part B of Form 26AS. Details in this section include –
- Total amount paid or debited
- Name of collector
- TAN of collector
- Aggregate tax collected
- Total tax deposited
Taxpayers may check the veracity of such details to ensure appropriate tax has been collected. In case of discrepant information, individuals should consider contacting the concerned collector.
3. Tax other than TDS or TCS
Part C of Income Tax 26AS Form contains information of all advance and self-assessment taxes that a person has paid during the course of an Assessment Year. It includes the following details –
- Tax amount paid along with details of tax, surcharge, cess and other levies
- Deposit date
- Challan serial number
- Heads under which one has paid the taxes
- BSR code
If there’s any inaccuracy in presented information, individuals should intimate the concerned bank or assessing officer.
4. Tax refund details
This section reflects the transaction details of any refund made to taxpayers. Part D of Form 26AS provides the following information –
- Assessment year in which one receives the refund
- Date of payment
- Mode of payment
- Interest paid
- Amount received
Individuals can contact the concerned officer or ITR-CPC for rectifications if required.
5. High-value transactions
Form 26AS also provides information on high-value transactions that a taxpayer engages in a specific Assessment Year via different financial institutions. Based on their Annual Information Report, this section is prepared. It primarily includes transactions related to purchase of mutual funds, corporate bonds, cash deposits, immovable properties, etc. If a taxpayer finds any inconsistency in relevant documents and information furnished in this section, they may contact the concerned AIR filer.
6. TDS on purchase of immovable property
Part F of Form 26As provides information of tax deducted at source against sales of immovable properties, as per Section 194(AI) of the Income Tax Act, 1961. This section is relevant for property buyers. On account of inaccuracy in presented information, individuals may intimate NSDL or concerned bank branch.
7. Tax defaults
The last section, i.e. Part G of Form 26AS, comprises details of any tax default pertaining to the processing of statements. It includes the following pieces of information –
- Financial Year
- Defaults relating to TDS payment interests
- Defaults relating to TCS payment interests
- Short payment
- Short deduction
- Interest under Section 220 (2)
- Fee for late filing as per Section 234E
If there’s any discrepancy, individuals may contact the concerned deductor.
It’s of utmost significance to ensure that all details in Form 26AS are accurate when filing ITR. Thus, taxpayers might consider keeping all required information handy when checking this piece of document.