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Form 26AS: Your Ultimate Guide to Income Tax Statement

Team AckoDec 21, 2023

The numbers, the letters, the paperwork and complex jargon! Tax season can often feel extremely overwhelming, dreadful, in fact. 

To help you ease through this, the Indian government has taken steps to simplify the process and empower taxpayers with crucial information.  To help you furthermore, we are here. Form 26AS - An income tax statement that provides a consolidated view of your financial transactions as per the records of the Income Tax Department. In this comprehensive guide, we'll break down Form 26AS in simple terms, exploring its significance, contents, and how to access it.

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Contents

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What is Form 26AS?

Form 26AS is a consolidated statement issued under Section 203AA of the Income Tax Act, 1961. It encapsulates various financial transactions linked to your Permanent Account Number (PAN) and serves as a comprehensive record of tax-related activities, including tax deducted at source (TDS), tax collected at source (TCS), advance tax payments, and much more.

Why is Form 26AS Important?

Form 26AS is not just another piece of paper; it's a vital document that paints a clear picture of your tax-related activities. It ensures transparency between taxpayers and the Income Tax Department, preventing discrepancies and reducing the chances of errors in tax calculations. 

Here's why it matters:

  • Verification: Form 26AS enables you to cross-verify the information provided by your employer or other deductors against the records maintained by the tax department. This further ensures accurate reporting of income and taxes.

  • Tax Credit: The TDS and other tax payments reflected in Form 26AS are directly linked to your PAN. This enables you to receive due credit for the taxes already paid, thereby avoiding double taxation.

  • Income Verification: It acts as documentary evidence of your income and tax payments, which can be invaluable during financial assessments, loan applications, or other transactions that require proof of your financial health.

  • Simplifying Filing: When you file your income tax return (ITR), having a clear overview of your tax payments in Form 26AS makes the filing process smoother and more accurate.

What Does Form 26AS Contain?

Form 26AS is a compilation of several details related to tax payments and deductions. Here's a breakdown of its contents.

  1. Part A: This section provides details about tax deducted at source (TDS) from various sources such as salary, interest, rent, etc. It includes the name of the deductor, TAN (Tax Deduction and Collection Account Number), the amount of TDS, and the section under which it was deducted.

  2. Part A1: This segment displays the details of TDS on interest from deposits made with banks, financial institutions, etc.

  3. Part A2: It includes information about TDS on income other than salary and interest. This covers TDS on rent, commission, professional fees, etc.

  4. Part B: Here, you'll find details of tax collected at source (TCS) for transactions like sale of goods, remuneration for services, etc.

  5. Part C: This part pertains to details of self-assessment tax and advance tax paid by the taxpayer.

  6. Part D: Any refunds received during the financial year are listed in this section.

  7. Part E: Information related to high-value transactions such as property purchases, investments, etc., are available here.

  8. Part F: This entails the details of tax deducted on sale of Immovable Property u/s 194IA. It further shows you the details of any TDS deducted by you while buying a property. Also, displaying TDS deposited by you to the bank.

  9. Part G: TDS Defaults (Processing of Statements). Mentioned on the websites are defaults relating to the processing of statements. However, they do not include demands raised by assessing officers.

How to Access Form 26AS?

Now that you understand the significance of Form 26AS, here's how you can access it:

Through the Income Tax Department's Website

  • Visit the official Income Tax e-filing portal (incometaxindiaefiling.gov.in).

  • Use your PAN and password to log in to your account.

  • (Tax Credit) View Form Under Form 26AS under the "My Account" tab.

  • You'll be redirected to the TRACES website (TDS Reconciliation Analysis and Correction Enabling System).

  • Choose the assessment year and the format in which you wish to view Form 26AS (HTML, PDF, or text).

  • Agree to the terms and click on "View/Download."

Through Net Banking

  • Some banks provide the facility to view Form 26AS through net banking.

  • Log in to your net banking account.

  • Look for an option related to income tax or Form 26AS.

  • You might be redirected to the TRACES website to view the statement.

Using PAN and TAN

  • You can also access Form 26AS by visiting the TRACES website directly (tdscpc.gov.in)

  • Select the "Tax Payer" option and then click on "Register as New User."

  • Choose the "PAN" option and fill in the required details.

  • Follow the registration process and log in to your account to view Form 26AS.

Wrapping up!

Form 26AS acts as a bridge of information between taxpayers and the Income Tax Department, promoting transparency and accuracy in tax-related matters. It serves as a testament to the government's efforts to simplify the taxation process and empower individuals with insights into their financial transactions. By understanding the significance of Form 26AS and learning how to access and interpret it, you're taking a step towards effective tax management and compliance. Stay informed, stay empowered!

By this, no amount of numbers, letters, jargon and papers will overwhelm you. Rather, understanding the same helps navigate through by being rightly equipped.

Frequently Asked Questions

Here are some common questions about Form 26AS.

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What to do if TDS credit is not reflected in the form 26AS?

The payee needs to contact the payer to understand the exact reason for non-reflection of TDS credit.

Is 26AS enough for income tax?

Both 26AS form and and AIS are equally important and should be referred to.

What if the amount is wrong in 26AS?

It is vital to bring it to the attention of the deductor or employer. The deductor can further fix the issue by filing a TDS correction statement.

What happens if 26AS is not updated?

You will be served a notice from the Income Tax Department.

Who is eligible for 26AS?

Any PAN holder that has a netbanking facility from an authorised bank is eligible for 26AS.

Can we use 26AS instead of Form 16?

TDS deductions mentioned in form 16/16A can be cross-verified using 26AS.

Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on several secondary sources on the internet, and is subject to changes.

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