Making India Tax Wise

Form 26 AS

Form 26AS: Safeguarding tax credit of every tax payer

Whenever a person receives any income on which TDS is deducted, numerous doubts arise in the mind – how should I keep a record of the TDS amount deducted? How do I calculate the advance tax? What if the Income Tax department mixes my tax details with another taxpayer?

One way is to pen down all the details and keep it safely till you file your returns. But it is a time-consuming process plus very difficult to maintain and sustain. To make things easier, Form 26AS comes to your rescue.

Form 26AS: Tax Credit Statement

Form 26AS is a statement that depicts the total amount of TDS ( tax deducted at source)/advance tax/TCS (tax collected at source)/self-assessment tax deposited/refunds received against a particular PAN number during a particular financial year. There can be only one Form 26AS for a PAN number in a particular financial year.

What are the benefits of Form 26AS?

Form 26AS is very helpful at the time of filing income tax return for the year, since the total amount of TDS, TCS, advance tax and self-assessment tax can be utilised against the final tax liability.

Often people receive payments but forget that a TDS amount has been deducted on this amount. If the total earned income during a financial year is below the basic taxable limit (₹2,50,000 for FY 2017-18), the TDS deducted can be claimed as a refund. Hence, it is advisable to scan through Form 26AS before filing income tax return to have a clear picture of the total TDS deducted against the PAN number and the total advance tax deposited.

Let us understand the concept with the help of some figures:

Yuvaan received salary of ₹1,00,000 per month from his company, and his company deducted TDS @ 10% every month.

Yuvaan received a monthly salary of ₹1,00,000 from his company and a TDS of 10% was deducted from the same every month. He also received FD interest of ₹70,000 from his bank and his bank deducted a TDS @ 10%. As a responsible citizen, Yuvaan deposited ₹50,000 as advance tax amount. Now if Yuvaan checks his Form 26AS at the end of the year, his total tax credit will be:

TDS deducted on salary = ₹1,00,000*12*10% = ₹1,20,000
TDS deducted by bank = ₹70,000*10% = ₹7,000
Advance tax deposited = ₹50,000
Total tax credit = ₹1,77,000

Now he can adjust ₹1,77,000 against his final tax obligation while filing income tax return.

How to view Form 26AS?

  • Form 26AS can be viewed by visiting the Income Tax Department website: https://incometaxindiaefiling.gov.in/home
  • After logging in by entering User ID (PAN number), password, date of birth, and captcha, a dashboard will appear.
  • Go to My Account -> View Form 26AS (tax credit). User will be redirected to the TDS-CPC website
  • By selecting the relevant assessment year, Form 26AS can be viewed, or can be downloaded in HTML, text or PDF mode.
  • The password to open the PDF document of Form 26AS is the date of birth/date of incorporation in ddmmyyyy format.

How does the Form 26AS look like?

Few basic the details are mentioned on the top of the form:

  • PAN number
  • Status of PAN (active/ cancelled)
  • Financial year & assessment year
  • Name and address of the taxpayer

Form 26AS is divided into seven major parts – A, B, C, D, E, F & G. Apart from this the top of the form has the following basic details of the Assessee:

Part A – Details of TDS

The information related to TDS deducted by all payers are mentioned here. Details include:

  • Name and TAN number of the deductor
  • Total amount paid to the payee
  • Total TDS deducted by the payer
  • Total TDS deposited to the government by the payer
  • Section of TDS
  • Transaction date
  • Date of deduction of TDS
  • Amount paid and TDS deducted on each transaction date

Part A1 – Details of TDS for Form 15G/15H

If the taxpayer has given Form 15G/15H because of which no TDS has been deducted, details of it will be displayed here. Particulars are same as mentioned in Part A.

Part A2 – Details of TDS on sale of immovable property u/s 194IA (seller)

This section shows the details of payment received from the sale of a property post TDS deduction. The Name and PAN of the deductor, transaction date, total transaction amount and the TDS deposited will be shown here.

Part B – Details of TCS

This section shows the details of TCS collected on goods sold by you. It includes the Name and TAN of the collector, section of TCS, transaction date, amount paid and the TCS amount deposited.

Part C – Details of tax paid (other than TDS or TCS)

Advance tax and self-assessment tax paid to the government will be displayed here. If you have deposited the amount, but challan details do not match with the bank details, or the amount mentioned is higher than the challan amount as per bank, the status will be shown. On the basis of this you can correct the details by communicating with the bank.

Part D – Details of paid refund

Tax refund received during a particular financial year and the mode of the refund along with the amount, interest, and the date of payment will be shown here.

Part E – Details of AIR transaction

Details related to Annual Information Return will be displayed in this part.

Part F – Details of tax deducted at source on the sale of immovable property u/s 194IA/ TDS on rent of property u/s 194-IB (for buyer of property)

TDS deducted by the buyer while making payment for the purchase of immovable property are shown here. TDS on the rent of property u/s 194-IB will also be reflected here.

Part G - TDS defaults* (processing of statements)

Anomalies related to TDS returns will be shown here. It includes any shortage of TDS amount in deduction or deposition, interest or late-filing fees and the financial year to which such anomalies pertain.

In short, Form 26AS acts as a soldier who not only protects your tax credit but helps to prevent tax evasion due to the transparency in disclosing TDS and the advance tax deposited details. So stop penning down tax credits, Form 26AS is always there at your desk.

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