Pagar Khata -Staff Payroll & Attendance Management
In India, Form 26AS is an important tax document that each and every taxpayer should consult when filing their taxes. Annual Statement, often known as Form 26AS, keeps a consolidated track of all tax-related details linked with a PAN, such as TDS, TCS, and refunds.
The days of manually downloading Form 26AS to file your IT returns are long gone. When filing income tax returns, you can now easily import information from Form 26AS online. The employer deducts tax at source (TDS) and deposits it with the tax department. The amount of TDS deducted is specified on Form 16 and Form 26AS.
The Income Tax Department maintains Form 26AS, which is a consolidated yearly statement. It contains information about each taxpayer's tax credit matched with their PAN. The following is a list of the most essential details contained in Form 26AS:
You can take a look at the image of Form 26AS to understand its components more clearly:
Every financial assessment year's Form 26AS is broken down into seven sections, each of which is outlined below.
It gives you information on Tax Deducted at Source (TDS) in Indian rupees (INR). This Form focuses solely on the government pension, salary, and TDS that banks deduct from the interest you earn on your investments on a quarterly basis when this data is published.
This area of the form is reserved for TDS information from Form 15G/15H. This section of the form details transactions made at financial organisations such as banks when Form 15G/15H was submitted. Since the taxpayer completed Form 15G or Form 15H, details of income for which no TDS has been deducted have been provided. This section will show "no transactions present" if Form 15G/15H has not been submitted. Based on the information on this form, they would not deduct any tax. This area also allows you to keep track of any interest you've earned that hasn't been taxed.
It contains information about TDS on the sale of immovable property, such as land, under section 194-IA of the Income Tax Act.
Form 26AS Part B: Information on Taxes Collected at the Source
The details of the Tax Collected at Source (TCS) are kept in this part of the form. When selling a specific category of products, the seller collects this tax from the buyer (such as toll plaza, liquor, parking lot, etc.) The collector deposits the funds with the government every quarter.
Part C of Form 26AS analyses and records the specifics of taxes paid that are not subject to TDS or TCS. This section will show whether you paid advance tax or self-assessment tax. When customers deposit advance tax straight to the bank, it will upload this information within 3 days of the cheque clearing.
The details regarding paid refunds are kept in this section of Form 26AS. This part of the annual tax statement will include all the refunds you have applied for and received. It's a good idea to maintain track of these details, so you can see if you've been reimbursed for all the tax refunds you've requested.
The Annual Information Return (AIR) transactions must be kept in Part E of Form 26AS. If you undertake certain high-value activities, e.g., property purchase, mutual fund investment, Banks and other entities, automatically report these activities to the Income Tax Department via the AIR.
TDS must be deducted before making a payment to the seller if you have purchased a property. It is applicable when you have purchased a home for more than 50 lakhs. Part F looks into the specifics of such a deal.
Defaults relevant to statement processing of TDS are filled by a deductor. It can be during a particular quarter within a financial year. It consists of information regarding the defaults in TDS that are required to be rectified by the deductor in filing correction statements, payment of required interest or other dues. They exclude any demands made by the assessing officer.
Always check 26 AS before completing your income tax return to make sure the tax amount received in your account with the IRS is correct. There are two ways to check the 26AS form:
How to use the TRACES website to view and download Form 26AS?
Step 1: Use your income tax department login and password to access your account from the website www.incometax.gov.in. You'll need to create an account if you don't already have one.
Step 2: Enter your user ID, which can be a PAN, Aadhaar number. If the user ID is incorrect, an error notice will appear. Fill in the captcha code. Login by clicking on the link.
Step 3: Select the checkbox below the secure access notification to confirm it. The “Login” message is the default secure access message. This message serves as verification of the income tax website's legitimacy. From "Profile," the taxpayer can create their own personalised, secure access message.
Then enter your password and proceed.
Step 4: The screen below will appear. Go to the ‘e-file' section. Select "View Form 26AS" from the drop-down menu under "Income Tax Returns." After that, you'll be able to see the 26AS tax form.
Step 5: To be transferred to the TRACES website, click on the ‘Confirm' button in the disclaimer. After that, you'll be taken to the TRACES website.
Step 6: Once you've arrived at the TRACES (TDS-CPC) website, fill out the form. Select the box on the screen and then press the ‘Proceed' button.
Step 7: To view yo ur Form 26AS, select the ‘Click View Tax Credit Form 26AS' link at the end of the article.
Step 8: Select the Assessment Year and the Form 26AS format that you want to view. Keep the format as HTML if you wish to view it online. Once you've made your decision, type in the "Verification Code" and click "View/Download." You can also save the file as a PDF.
The following is a list of banks that have registered to view Form 26AS:
Since it covers all tax-related information, Form 26AS is regarded as a crucial financial document. The following are the primary goals of this form:
Let's understand the aid provided by Form 26AS through an example- Mr X wishes to pay his yearly income tax on a salary of Rs. 5 lakhs (Rs. 41,000 per month) and other income of Rs. 3 lakhs. Mr X has no idea about the amount of tax that has been deducted from his other income, although his Form 16 shows the amount of tax that his employer deducted. However, TDS deducted by his employer and any other deductions will be reflected on Form 26AS.
The details of the TDS certificate must be cross-checked and verified on Form 26AS to ensure that the TDS deducted from the payee's earnings was indeed deposited with the IRS.
Having adequate information regarding Form 26AS is vital for proper tax filing. The tax deducted or paid to the collector is deposited into the government account for tax collection through this form. The overall process is effortless when all correct details are provided. By following the respective steps and guidelines highlighted in this article, we hope you will cater to this requirement with ease.
Is professional tax accounted for on Form 26AS?
No, Form 26AS does not include professional tax. Professional tax is a state tax, and the credit for state taxes is not included in Form 26AS.
What is the purpose of Form 26AS?
Form 26AS is essential since it proves that tax was deducted and collected on our behalf at the source. It also confirms that our employers and banks successfully deducted and deposited the correct taxes on our behalf into the government's account.
Where can I get a 26AS form if I'm not in India?
It can be visited via Traces from any location in the world.
What is the form 26AS password?
The form 26AS password is the taxpayer's date of birth in the format of DD/MM/YYYY
Pagar Khata -Staff Payroll & Attendance Management