Income tax form 26AS
Q1 What is Form 26AS?
Ans Form 26AS is a consolidated tax statement issued under Rule 31 AB of Income Tax Rules to PAN holders. This statement with respect to a financial year will include details of:
a) tax deducted at source (TDS);
b) tax collected at source (TCS); and
c) advance tax/self assessment tax/regular assessment tax etc. deposited in the bank by the taxpayers (PAN holders).
Q2 What is the purpose of Form 26 AS ?
Ans : The credits available in the tax statement confirm that:
a) the tax deducted/collected by the deductor/collector has been deposited to the account of the government;
b) the deductor/collector has accurately filed the TDS/TCS statement giving details of the tax deducted/collected on your behalf;
c) bank has properly furnished the details of the tax deposited by you.
Form 26 AS is consolidated tax statement (Form 26AS) is used as a proof of tax deducted/collected on your behalf and the tax directly paid by you along with your income tax return,
Income tax payer is no longer required to attach photocopy of TDS certificate along with Income tax return.
Q3 How to read and understand 26AS?
The Form 26AS (Annual Tax Statement) is divided into three parts, namely; Part A, B and C as under:
Part A displays details of tax which has been deducted at source (TDS) by each person (deductor) who made a specified kind of payment to you.
Details of the deductor (name & TAN) along with details of tax deducted like section under which deduction was made (e.g. section 192 for salary), date on which payment was effected, amount paid/credited, tax deducted from payments and deposited in the bank are included in this part.
Part B displays details of tax collected at source (TCS) by the seller of specified goods at time these goods have been sold to you. Details similar to those displayed in Part A in respect of the seller and the tax collected will also be available.
Part C displays details of income tax directly paid by you (like advance tax, self assessment tax) and details of the challan through which you have deposited this tax in the bank.
- To avoid demand notice from the income tax department.
- For seamless processing of Income Tax Department Return and speedy issue of refunds
Q5 Do you view form 26AS before filing Income tax return?
Ans: Yes , we at TaxGyan.in believe in correct filing of income return. We always review your form 26 AS before filing of Income tax return. This extra step insures that customer does not get surprises by way of Income tax demand from Income tax Department
Whereas, other Tax return filing sites just rely on data provided by tax payer. They never look at 26AS before filing Income tax return. In fact they let taxpayers fill in tax form, there is no personal interaction.
But here at taxgyan.in each income tax return is personally reviewed by Senior Chartered Accountants.
Q 6 How are the details of TDS/TCS with respect to government deductors posted in Form 26AS?
Ans As in the case of non-governmental deductors government deductors are required to deduct/collect tax at source and deposit to government account. In this case however the tax is transferred to the government account through a book-entry and not deposited through banks.
These deductors are also expected to file the TDS/TCS statement in electronic form to TIN.
As the system for the government account officers to upload the details of TDS/TCS deposit through book entry transfer is under implementation the TDS/TCS details with respect to government deductors are not posted in Form 26AS at present.
Q 7 How is my Form 26AS updated after my deductor deducts my tax?
Ans: As and when TDS/TCS statements furnished by the deductors are uploaded to TIN central system challan information from the statements and the challan information from bank uploads are matched and Form 26AS is updated. This is a daily activity.
As per the Income Tax Act the deductors/collectors are required to file their TDS/TCS statements every quarter. This means that within about 15 days of the deductors filing quarterly e-TDS/TCS statement the TDS/TCS entries will be posted in the tax statement which is available in the TIN website.
Q 8 What is the source of the information like my name and address given in the Form 26AS?
Ans: The name and address in the annual tax statement against your PAN is taken from the Income Tax Department (ITD) PAN database.
In case this address in the PAN database available with ITD is not your current address the annual tax statement which is proposed to be printed and posted to you every year will not reach you.
If you need to update your name and address in the PAN database you can rectify the same by making an application using the ‘Request for new PAN card or/and changes or correction in PAN data’. This request can be made either online or through the existing network of TIN-FCs.
Q 9 What are the possible reasons for incorrect amount of credits being displayed in Part A/B of my tax statement?
Ans The possible reasons for incorrect credits in Form 26AS can be on account of wrong data provided by the deductor in the quarterly TDS/TCS statement. You may request the deductor to rectify the TDS/TCS statement using prescribed correction statement.
Q 10 What corrective action can be taken for omissions in the tax credit statement?”
Ans: Tax payers need to take up the case with their employers/deductors for rectification of the error/deficiency to get their share of tax credit. If the advance tax payments are not reflected, then they would need to speak to the bankers.
Q 11 How can changes be made to the name and address of the PAN holder displayed in Form 26AS?
Ans If PAN holder details are incorrect the same can be updated by making an application using the ‘Request for new PAN card or/and changes or correction in PAN data’. This request can be made either online or through the existing network of TIN-FCs. Details are available at the TIN website