Everything you need to know about Form 26AS

Form 26AS, also called the Tax Credit Statement, is an important structure for the Indian tax system. Photo: Special Arrangement/incometax.gov.in

Form 26AS is a vital document for any taxpayer. It depicts the dates and amount of prepaid taxes for you. Form 26AS is issued by the Income Tax Department of India, and it is basically a detailed record of all your tax information for the entire year. It contains all the information connected to your PAN for that financial year. When you file taxes, Form 26AS shows taxes deducted by your employer or clients. You can download this form from the Income Tax website. Let's explore and understand everything about Form 26AS.

What is Form 26AS?
Form 26AS, also called the Tax Credit Statement, is an important structure for the Indian tax system that gives an individual a general view of his or her tax, including the different sources of income, tax deductions, and credits like TDS and TCS. 26AS is a valuable tool for taxpayers to analyse and file their income tax returns. Now that you know what is Form, let's get started with understanding this form in depth.

New Form 26AS
The new Form 26AS came into effect on 1 June 2020. The Central Board of Direct Taxes has revamped Form 26AS to make the process of filing tax returns easier and crystal clear. Changes introduced in Form 26AS are as follows:

  • Quarterly particulars of tax deductions from salary.
  • Details of advance tax paid by the Assessee.
  • Returns and demands for income tax, if any.
  • Details of ongoing or completed income tax proceedings.
  • The inclusion of foreign remittances is mentioned in Form No. 15CC.

Why is Form 26AS important?
Form 26AS is very important since:
- It helps taxpayers verify whether or not the correct amount of tax has been deducted from one's income and deposited with the government.
- The taxpayers have recourse to a refund based on Form 26AS if more tax gets deducted.
-Ensures proper filing of taxes with the relevant authority to avoid mistakes.
-It also helps keep track of tax payments and detects any errors in the tax records.

Information available on Form 26AS
Form 26AS provides a summary of key tax-related details:

  • The amount of tax deducted from your income by others.
  • On your behalf; this would include banks and employers collecting the tax from you.
  • Any advance tax payments made by you.
  • Payment of self-assessment tax and deposits of regular assessment tax are also on record.
  • The form carries data regarding share transactions, mutual funds, and substantial financial deals.
  • It documents tax deducted on property sales and gives you your year-long turnover figure.
  • Finally, Form 26AS shows any income tax refunds that you have received.

How to get form 26AS online?
Here's how you can instantly get Form 26AS online:
Step 1: Log in at the official e-filing portal of the Income Tax Department.
Step 2: Go to the "e-file" section of the e-Filing Portal, click on "Income Tax Returns," and then select "View Form 26AS."
Step 3: Click "View Form 26AS" and read and agree to the disclaimer. You will then be redirected to the TDS-CPC Portal.
Step 4: On the TDS-CPC Portal, accept the terms of usage by clicking the "Proceed" button.
Step 5: After accepting the above, click on the link for "View Tax Credit (Form 26AS)" on the TDS-CPC Portal.
Step 6: Select the Assessment Year, i.e., the year you want to view and then choose the View type- HTML/Text/PDF.
Step 7: Finally, choose whether to view Form 26AS online or download it.

Different parts of form 26AS
A remarkable feature of this new Form 26AS is that it makes the whole process of tax filing much easier and helps you get a clear view of all your tax details. Understanding every section in detail allows us to manage our taxes better and more conveniently.

Section A: TDS details
It displays the amount of tax deducted from your income. That is, it gets deducted from the amount paid to you for services rendered in lieu of salary, interest or pension. It gets updated quarterly and also provides details related to the entity that deducts this tax as well.

Section A1: TDS details for Form 15G/15H
Covers cases where you have submitted Form 15G or 15H for no TDS from your income.
A2: Information About TDS on property
Indicates the amount of tax deducted on property transactions, rent paid, and also covers payments made to resident contractors or professionals.

Part B: Information about TCS
Indicates the amount of tax you collected as a seller in sales transactions.
Part C: Information about taxes paid other than TDS/TCS
Displays the TDS deducted on, inter alia, sales of property, rent, advance for rent, and payments to contractors.
Section D: Refund details
Details any tax refund.
Section E: Statement of financial transactions
It provides detailed information about the fund flows of financial activities such as cash deposits, property transactions, and credit card payments.

Section F: TDS from buyer/tenant perspective
Displays TDS deducted for property transactions or payments to third-party contractors from the perspective of the buyer or tenant.
Section G: TDS defaults
It detects any errors in the processing of statements, which need to be checked and corrected immediately.

Any taxpayer in India will find Form 26AS a very important document. It provides the necessary information regarding income, deductions made, and credits like TDS and TCS to make the tax filing process easier. The form makes tax management hassle-free for the individual.

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