“Form 26AS”

How to Accessing Form 26AS?

Form 26AS is a Tax Credit Statement which helps taxpayers in keeping a track of their tax deductions. This statement is issued by the Income Tax Department to taxpayers. It contains information related to the taxes paid by an individual or a business entity in a particular financial year.

The information available in Form 26AS include details about the deductions and taxes like TDS, Advance Tax, Self-Assessment Tax and Tax collected at source, refund, etc. It also includes details about the interest, fees paid to the Income Tax Department, details about the high-value transactions like purchase/sale of immovable property, purchase/sale of shares etc. It allows the taxpayers to verify the details entered in the Income Tax Return and rectify any discrepancies before filing the return.

Form 26AS can be accessed through Traces (Tax Information Network), an e-Governance system managed by the Centralised Processing Centre (CPC) at Bengaluru. Taxpayers need to register themselves on the portal to access the statement.

Importance of Form 26AS for Taxpayers

Form 26AS is essential for taxpayers to verify their tax liabilities and tax refund before filing their Income Tax Return. It serves as a proof of taxes paid by the taxpayer and can be used to avail benefits under 80C, deduction under HRA, or claim refund, etc.

It also provides a record of the cash deposits or withdrawals above Rs. 1 lakh in a financial year, investments and withdrawals. That way, the income tax department can keep track of the taxpayer’s assets which helps meet the compliance requirements.

Understanding the Components of Form 26AS

Form 26AS contains the following details:

• Part A: It contains information about the Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) during a particular period.
• Part B: It provides information about Advance Tax, Self Assessment Tax and refund of income tax paid by the taxpayer.
• Part C: It contains the details of high-value transactions such as purchase/sale of immovable property, purchase/sale of shares, etc.
• Part D: It consists of the details of the cash deposits or withdrawals above Rs.1 lakh in a financial year.

FAQs

What is Form 26AS, and why is it important?

Form 26AS is a Tax Credit Statement issued by the Income Tax Department which helps taxpayers in keeping a track of their tax deductions. It contains information related to taxes paid by individual or business entities in a financial year. Form 26AS is important for taxpayers to verify their tax liabilities and tax refund before filing their Income Tax Return. It serves as a proof of taxes paid by the taxpayer and can be used to avail benefits under 80C, deduction under HRA, or claim refund, etc.

How can I access my Form 26AS statement?

Form 26AS can be accessed through Traces (Tax Information Network), an e-Governance system managed by the Centralised Processing Centre (CPC) at Bengaluru. Taxpayers need to register themselves on the portal to access their Form 26AS statement.

Is Form 26AS sufficient for filing my tax return?

Yes, Form 26AS helps taxpayers to verify the details entered in their Income Tax Return and correct any discrepancies. It also provides a record of the cash deposits or withdrawals, investments and withdrawals. Thus, having Form 26AS is beneficial for timely and accurate filing of one’s tax return.

Also See: Form 26QB