What is Form 26AS, almost everybody heard about the term during filling of income tax return, the due date for filing your return is nearby.
You must aware of all the facts and importance of Form 26AS.
How it helps you filling income tax return & also keep you away from delivery of the Income-tax notice.
Table of Contents
What is Form 26AS
Form 26AS is a consolidated tax deduction statement, which keeps all your annual record of any tax paid by you or on your behalf.
Income Tax department keeps all your tax-related data in their database through 26AS.
The IT department also tallies all your tax deduction details provided by you by Form 26AS. In any variation, you are welcome to get the income tax notice.
Also Read: Shares Fundamental Analysis (Complete Guide)
It is very easy to view form 26as by pan no just by log into income tax website
After login, you will get the complete form with a lot of information bifurcated into several parts, each part consisting of different information.
In this analysis of this article, you will self-confidently examine your own form and get rid of problems.
26as form details
Form 26AS provides the taxpayer information in following different parts:
- Part A – Details of Tax deducted at source.
- Part A1 – Details of Tax deduction at source for 15G/15H.
- Part A2 – Details of Tax deduction at source on sale of immovable property u/s 194IA/TDS on rent pf property u/s 194IB (for seller /landlord of property).
- Part B – Details of Tax collected at source.
- Part C – Details of Tax paid (other than TDS or TCS)
- Part D – Details of paid refund.
- Part E – Details of AIR Transition.
- Part F – Details of Tax deducted at source on sale of immovable property u/s 194IA/TDS on rent pf property u/s 194IB (for buyer/tenant of property).
- Part G – TDS Defaults (Processing of statement)
Before diving into the details of the above section, it is very important to clarify one thing:
What is Tax deducted at source
Tax deducted at source (TDS) is the tax amount deducted at the beginning of the transaction means, the person making payment to the other will deduct the TDS amount of the person and deposit into the PAN number of the person.
Whats why the term derived from “Tax deducted at source”.
How to interpret form 26as? – The Step by Step section-wise explanation~
Details of Tax deducted at source – Part A
Part A of Form 26AS reveals the details of tax deduction at source like from your salary, interest received from the bank, pension income, etc.
This amount is deducted at source and submitted by the deductor into your PAN number and the tax department will mention the same amount in Form 26AS part A as mentioned in the red box below.
Details of Tax deduction at source for 15G/15H – Part A1
If you are holding a fixed deposit in the bank, you might receive the SMS from your bank to submit Form 15G/15H.
If you submit this form you will get the details of income where no TDS is deducted, form 15g and 15h is the declaration for submitted in the bank, after receiving of this Form 15G/15H bank will not deduct the TDS and the details will be revealed in this part A1.
Details of Tax deduction at source on sale of Immovable property – Part A2
Any transaction occurred in the head of immovable property, the buyer of the immovable property will deduct the TDS for the amount paid to the seller of the property.
This section reveals the details of TDS deduction.
Details of Tax collected at source – Part B
This section work for you if you are the seller or a part thereof, the tax collected by you (TCS). It is provided under section 206C of Income Tax Act.
“Under section 206C of Income tax act, the seller has to collect tax at the rate of 1 % from purchase while selling the goods”
The provision of this section will not apply for the Financial year 2018-19.
Details of Tax Paid (other than TDS or TCS) – Part C
Any deposited from your side other than TDS or TCS will be flashed into this section, most of the taxpayers use to pay taxes in advance through challan and will be adjusted while filing the return.
The details of advance tax paid or self-assessment tax are available in this section.
This portion is important when we will return the same details will be posted on the return form.
Details of paid refund – Part D
During filling of return, tax paid in advance or TDS deposited through bank or employer all details are mentioned in the return.
Also Read: What is Dividend Adjusted PEG Ratio
After putting all things together, if the tax amount is excess in the particular financial year, it would be refunded by Income tax department and is mentioned in section Part D.
Details of AIR Transition – Part E
Form 26AS also possess the option of reporting the high-value transaction based on an annual information return (AIR).
The High-value transaction is reported by the bank or financial institutes for execution or purchase of mutual funds, immovable properties, bonds, equity.
It is mandatory for the financial institutes and banks to report such high-value transactions to the departments, which is disclosed in this section of Form 26AS.
Details of Tax deducted at source on sale of immovable property – Part F
If you buy an immovable property, it is mandatory to deduct the TDS before making the payment to the seller, this section reveals the information of the Tax deducted.
Also Read: Effect of NPA in the Banking Sector
TDS Defaults (Processing of statement) – Part G
Income tax department kept the margin of error for TDS defaults, this section does not include any claim raised by assessing officer.
It is always recommended to all the taxpayer to verify Form 26AS before filing Income tax return, it will provide you with the correct information and get rid of any kind of income tax notice.
How to access Form 26AS + How to download form 26as from traces
For those how are aware of online filling of Income-tax, it is very easy to understand and download your 26AS through the website:- https://www.incometaxindiaefiling.gov.in
Then click to Form 26AS (Tax credit) – left-side of the screen. Log in with your user ID and password along with the date of birth which you use for filing Income tax return.
After Login You have to click “View Form 26 AS” under head my account, after clicking you have to click proceed, which will bring you to the popup page of TDS.
You have to click agree terms and conditions and proceed, then you have to select view tax credit (Form 26AS).
After getting inside, the screen seems familiar, you can see your name and address, now all you have to do is a select financial year and you want to view your Form 26AS in which format.
You will get access to the download/view button after processing all the steps. that will bring you your form 26as on your screen.
How to check form 26as without registration
The only way you can check form 26as without registration is through your net banking portal, every bank allows the user to fetch form 26as directly from the Income-tax department database.
How to match form 16 and form 26as
Form 26AS contains details of tax deducted on behalf of the taxpayer by deductors (employer, bank, etc.). So, TDS deductions that are given in Form 16 / Form 16 A can be cross-checked using Form 26AS. The TDS amounts reflected in Form 26AS and Form 16/16A should always be the same.
Sometimes there is a mismatch in form 26as and form 16, the income tax department considers the value of the form 26as.
How many days it takes to reflect in form 26as
There is no specific timeline for that but in the majority of cases, it can take 30-45 days to reflect the deposit of TDS in Form 26AS.
What to do if your TDS is not deposited with the government?
Under this scenario, a poor employer takes advantage of their employee and ignore to deposit the TDS deducted from their salary, and the poor employee also refuses to take any action against their employer.
But the point is the employee is liable to pay the tax under this scenario. Filling ITR along with TDS deducted amount by the employer but without any evidence proof (like Form 26AS or Form 16, 16A), the department issue a notice for depositing the balance TDS.
The point why you pay additional Tax, even if your TDS is deducted.
You must reach the department with written complain along with relevant documents as proof.
- Salary slip showing deduction of TDS;
- Copy of Form 26AS not reflecting the deposit of TDS;
- Copy of letter written to your employer pointing out the discrepancy;
- Form 16, if available.