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Form 26AS while filing Income Tax Return (ITR)

FORM 26AS WHILE FILING INCOME TAX RETURN

Introduction

Form 26AS is a statement that containing all the details about the tax deposited, tax deducted at source, tax collected at source, advance tax paid by the assessee, self assessment tax paid by the assessee, information about income tax refunds and the details of tax deducted on sale of immovable property, among other details during financial year. This statement will be replaced by the Annual Information Statement (AIS). There is a great importance of checking of Form 26AS at the time of filing Income Tax Return (ITR). This Form can also be says as Tax Credit Statement. This form has now been enlarge and includes the details about foreign remittances, dividends, mutual funds purchases, refund details etc. It is significant tax document issued for individual taxpayers and connected with their Permanent Account Number (PAN). However, Assessee has to necessary reveals all the Income in his ITR which is completely considered in Form 26AS against which TDS/TCS has been made.

Significance of Form 26AS

Taxpayers can easily confirm the actual transactions before filing Income Tax Return with the transactions that are entered in Form 26AS. It helps in minimizing errors such as omissions at the time of filing ITR. If your ITR and Form 26AS creates mismatch can lead to an inquiry. This statement also confirms that different types of entities have paid taxes in your behalf and paid it to the Government. However, It is an important statement that match the details and prevent it from any notices and intimations from Income Tax Department.

Parts of Form 26AS

There are different parts of Form 26AS that are given below:

Part-A : Details of Tax Deducted at Source

Part A1 : Details of TDS (for Form 15G OR 15H):

If an individual earn some income from fixed deposit and other saving schemes to attract TDS. To avoid the taxes on these incomes, you are required to fill form 15G or form 15H with your bank. If you submitted these forms, an individual is exempted from paying tax on these incomes. Form 15G is filed in case of taxpayer below the age of 60 years and Form 15H is required to be filed in case of senior citizens.

Part A2 : Details of sale of immovable property:

These entries are mentioned in part A2-

  • TDS on sale of immovable property (for the seller of property)
  • TDS on rent of property (for the landlord of property)
  • TDS on payment to resident contractors and professionals (for a payee of resident contractors and professionals)

Part-B : Details of Tax Collected at Source

Part-C : Details of Tax paid during the year

Part-D : Details of paid refund

Part-E : Details of high value transactions such as mutual funds purchase, property purchases, bonds

Part-F : Details of TDS of immovable property for buyer

Part-G : TDS defaults

Part-H : Details of turnover during financial year as per GSTR- 3B

Purpose of Form 26AS

Form 26AS is annual tax credit statement that is issued by the Income Tax (IT) Department. It is the most important document for the taxpayer.

  • It provides a proof of tax deducted and tax collected during the year on your behalf.
  • This Form also provides the details about the tax paid by taxpayer in your Income Tax Return.
  • It also confirms that the accurate tax is deducted and deposited into the Government Account.
  • It also confirms that the bank has properly provides the information about tax paid by the taxpayer.  

Conclusion:

At last, it can said that Form 26AS is a most significant statement for taxpayer. Because it prevents the taxpayer from any notices and intimations from Income Tax Department and also provides all the information about tax deducted and collected during the financial year. If you have any doubt regarding this, then you can send your doubts on company suggestion and clear it.

CS Deepa Sharma

Author is a associate member of the Institute of Company Secretaries of India (ICSI) and apart from that she holds LLB degree and Master in Commerce degree from Rajasthan University. She is having over 5 years of experience as a Practicing Company Secretary. She is well versed with all the matters related to Company Law and ROC matters, RERA , statutory reporting, Compliance Report and Corporate Governance. She is having good exposure in maintaining secretarial records as prescribed under Companies Act, 2013.


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