What is Form 26AS and How to Download It?

Information Available on Form 26AS

Form 26AS shows the below information:

• Tax deducted by all the tax deductors
• Tax collected source by all tax collectors
• Advance tax payments 
• Self-assessment tax payments
• Regular assessment tax payments by PAN holders
• Income tax refunds during a financial year
• High-value transactions regarding mutual funds, shares, etc.
• Tax deducted on an immovable property’s sale
• TDS defaults in a year
• Turnover details according to GSTR-3B
• Tax demands
• Completed or pending assessment proceedings

Structure and Parts of Form 26AS

Form 26AS has a fixed structure with the following parts:

Part A: Tax Deducted at Source

• Part A1: Tax Deducted at Source for 15G/15H
• Part A2: Tax Deducted at Source on the Sale of Immovable Property u/s194(IA)/TDS on Rent of Property u/s 194IB/TDS on Payment to Resident contractors and professionals u/s 194M (For Seller/Landlord of Property/ Payee of resident contractors and professionals)

Part B: Tax Collected at Source

Part C: Tax Paid (other than TCS and TDS)

Part D: Paid Refunds

Part E: SFT Transactions

Part F: Details of Tax Deducted at Source on the sale of Immovable Property u/s194(IA)/TDS on Rent of Property u/s 194IB/TDS on payment to resident contractors and professionals u/s 194M (For Buyer/Tenant of Property/Payer of resident contractors and professionals)

Part G: TDS Defaults

Part H: Turnover according to the GSTR-3B

How to View Form 26AS?

Want to know how to see 26AS? There are two modes of viewing the form:

• Using the TRACES portal
• Using the taxpayer’s bank account’s net banking facility

How To Download Form 26AS From TRACES?

To download the form using the TRACES website or view form 26AS by PAN no., one can visit the site, log in using their ID and password, and download the form. Alternatively, they can complete a Form 26AS download using the income tax e-filing portal by following these steps:

• Visit the new Income Tax e-filing portal.
• Log into the Income Tax e-filing account using the registered user ID and password.
• On the Dashboard, click “e-File” at the top of the page.
• Find the “Income Tax Return” menu under e-File.
• Click “View Form 26AS”.
• Click “Confirm” to reach the TRACES website. 
• Agree to the terms and conditions.
• Click “View Tax Credit.”
• Choose the assessment year and file type.
• Click “View/Download.”
• View all TDS transactions.
• Click “Export as PDF” to download the statement in PDF format.

What is New in the Form 26AS?

In June 2020, the CBDT (Central Board of Direct Taxes) introduced a new Form 26AS. Earlier, the form only showed details about the tax collections, deductions, and payments. But now, it also includes the following details: 

• Special financial transactions like property purchases and mutual funds or shares transactions, etc.
• Completed or pending proceedings of the income tax department.

Importance of Form 26AS 

Here are a few reasons why Form 26AS is important:

• It allows tax deductors to ensure they have correctly filed the TDS statement.
• It allows tax collectors to file the TCS details accurately.
• It allows taxpayers to check whether the tax collected or deducted is correctly deposited to the government on time.
• It helps taxpayers to verify tax credits and calculate the income tax before filing an income tax return.

Benefits of Form 26AS

Form 26AS offers several benefits to the taxpayers, including the following:

• The form helps taxpayers verify tax deductions and correct deposits with the tax authorities.
• It provides a consolidated view of taxpayers' payments, including self-assessment tax, advance tax, TDS, TCS, etc.
• In the case of multiple income sources or tax payments in multiple jurisdictions, the form avoids double taxation.
• Form 26AS is an important document that maintains a taxpayer’s financial record of tax-related transactions.
• The form serves as a reference document for resolving any mismatches or discrepancies in tax credits.
• With a consolidated view of tax-related information, the form ensures transparency in the tax system.

Things to Remember for Filing Form 26AS

After the form 26AS download, one must remember the following things before filing it:

• Ensure the Form 26AS downloaded is for the current year, showing last year's tax returns.
• Determine the taxpayer’s residential status accurately. For NRIs, foreign income is taxable in India. Those residing in India for over 180 days and visiting abroad for short trips will qualify as ordinary citizens.
• One must choose the correct ITR form appropriate to their income class. For instance, salaried individuals must download the ITR-1 form and professionals and entrepreneurs must use the ITR-4 form.
• For further follow-ups, enter name, address, PAN, and contact details correctly.
• Apart from the form, use other documents like rental agreement, form 16, loan and investment details, bank statements, etc., to cross-check the tax details.
• Ensure disclosing any tax-exempted income.
• Ensure the taxpayer's bank account is pre-verified and PAN-linked.
• Report all foreign income or assets in the income tax return.
• Report all assets and liabilities if the annual income exceeds Rs. 50 Lakh.
• E-verify the returns within 120 days of filing the taxes.

Things to Verify in Your TDS Certificate with Form 26AS

One must always cross-check and verify the TDS certificate details to ensure the deducted TDS reaches the income tax department on time. Moreover, other things to verify in the TDS certificate with Form 26AS include the following:

• Ensure correct reflection of the name, PAN, refund amount, TDS amount, and deductor's PAN before accepting the certificate. A mismatch may cause problems when filing an income tax return.
• Compare TDS data on the payslips with Form 26AS to ensure the government received the TDS certificate. If not, contact the deductor and request them to file the TDS return and deposit the TDS amount as soon as possible.
• Ensure the TDS in Form 16/16A reflects on Form 26AS correctly. It implies that the deductor has deposited TDS to the government after deducting it on the taxpayer’s behalf.

Introduction of Annual Information Statement (AIS)

Also known as AIS, an Annual Information Statement is a statement incorporating new information such as foreign remittances, market transactions, received interest on tax refunds, mutual fund transactions, salary break-ups, ITR information, etc. 

The income tax department already had access to these details through authorised bodies like bank statements, property seller reports, and Form 16.

Benefits of Annual Information Statement (AIS)

Let’s look into the benefits of Annual Information Statement in the following sections:

• The AIS pulls out taxpayers' data and provides them with pre-filled returns in a phased manner.
• The department removes errors or duplications in the AIS report by submitting online feedback in case of inaccuracies. 
• The AIS offline utility is available for offline feedback upload. 
• Taxpayers can download the statement in PDF, JSON, and CSV formats.
• On submitting feedback, the derived information gets automatically updated in real time.
• The AIS statement simplifies the ITR filing process for taxpayers by providing more details in a single statement. 
• It allows tax authorities to easily compare the taxpayer’s details with the source and spot any mismatch, thus reducing the risk of tax leakages.

Conclusion

Form 26AS is an annual tax statement containing details of all tax deductions and payments during a financial year. When planning to file an income tax return, a taxpayer can simplify the process with the help of this form. Download the form online using the TRACES website or net banking facility to take advantage of this facility and become a responsible citizen. 

Frequently Asked Questions

1. Is form 26AS mandatory?

Form 26AS is essential as it is evidence of tax deductions and collections made on your behalf at the source. Also, it verifies that entities like employers and banks have accurately deducted taxes on your behalf and deposited them into the government's account, allowing you to claim credit for the same.

2. Can I download form 26AS online?

You can download Form 26AS online using the TRACES website or your bank account’s net banking facility.

3. Why is Form 16 needed?

Form 16 is the TDS certificate an employer issues when they deduct TDS from their employees’ salaries.

4. Is Form 16 mandatory for ITR?

Form 16 is a crucial document for salaried employees to file their annual ITR. However, they can also file their returns without Form 16.

5. What salary is eligible for Form 16?

Every taxpayer must file an income tax return if their gross total income exceeds Rs. 2.5 Lakh. An employer can issue form 16 only if they deduct TDS from their employees’ salaries.

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