Form 26AS: Annual Tax Credit Statement

Form 26AS: Annual Tax Credit Statement

What is Form 26AS?

Imagine a document that consolidates all your tax information for a specific year. That's precisely what Form 26AS is! It's an annual statement issued by the Income Tax Department that summarizes your tax credits, making it a crucial tool for filing accurate Income Tax Returns (ITRs).

Accessing Your Form 26AS:

There are two primary ways to access your Form 26AS:

•       TRACES Website: Login to the Income Tax Department's official e-filing portal using your PAN (Permanent Account Number) and password. Navigate to "My Account" and select "View Form 26AS (Tax Credit)" to download the document.
•       Net Banking (limited availability): Some banks offer the functionality to download your Form 26AS directly through their internet banking platform.

Understanding the Contents:

Form 26AS is divided into seven sections (Part A to Part G), each with specific details:

•       Tax Deducted at Source (TDS): (Part A) This section provides a breakdown of taxes deducted from your income by various entities, such as employers, banks, and mutual fund houses. It includes the deductor's name, TAN (Tax Deduction and Collection Account Number), the amount deducted, and the deposit date.
•        Part A1: TDS details related to Form 15G/H (declarations for no TDS on interest income).
•        Part A2: TDS details on the sale of immovable property (land or real estate).
•       Tax Collected at Source (TCS): (Part B) This section reflects taxes collected by sellers or dealers on your behalf and deposited with the government. For instance, TCS applies when you buy a car exceeding ₹10 lakh.
•       Taxes Paid Other Than TDS/TCS: (Part C) This part details any advance or self-assessment taxes you've paid during the year. It includes information like the tax amount, date of deposit, challan serial number, and tax heads.
•       Tax Refund Details: (Part D) This section shows any tax refunds you've received, including the assessment year, payment date, mode of payment, interest paid, and refund amount.
•       High-Value Transactions: (Part E) Based on your Annual Information Report (AIR) filed by financial institutions, this section details high-value transactions you made during the year, such as mutual fund purchases, bond investments, or cash deposits.
•       TDS on Sale of Immovable Property: (Part F) This part is relevant for property buyers and reflects TDS deducted on the sale of immovable property.
•       Tax Defaults: (Part G) This section highlights any tax-related defaults, such as short payments, short deductions, or interest on late payments.

Importance of Form 26AS for ITR Filing:

By carefully checking your Form 26AS, you can ensure all tax information in your ITR is accurate. This will help avoid discrepancies and delays in processing your tax return.