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 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.
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.
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.
Few basic the details are mentioned on the top of the form:
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:
The information related to TDS deducted by all payers are mentioned here. Details include:
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.
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.
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.
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.
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.
Details related to Annual Information Return will be displayed in this part.
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.
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.