Form 26AS - Overview, Viewing and Downloading from TRACES Online

Form 26AS is a crucial document maintained by the Income Tax Department in India. It serves as a consolidated annual statement that provides taxpayers with essential information about their tax credits against their Permanent Account Number (PAN). In this comprehensive guide, we will explore the various aspects of Form 26AS, from its contents and structure to the importance of reviewing it and the methods for accessing it. By the end, you will have a clear understanding of Form 26AS and its significance in managing your tax obligations effectively.

1. Introduction to Form 26AS

Form 26AS is an annual tax record kept by the Income Tax Department. It holds tax credit details for each taxpayer based on their PAN, recording both paid and deducted taxes. 

Non-Resident Indians (NRIs) with income in India, like interest on NRO accounts or salary with TDS deductions, need a PAN and registration with the Income Tax Department to claim tax credits and access Form 26AS.

2. Understanding the Information in Form 26AS

Form 26AS contains several essential pieces of information that taxpayers need to be aware of. Let's explore the details included in this tax credit statement:

• Information about Tax Deducted at Source (TDS) by deductors like employers/contractors
• Information about Tax Collected at Source (TCS) by collectors
• Advance tax/self-assessment tax paid by the assessee
• Tax refund details from the last financial year
• Specified Financial Transactions (SFT) details, mostly high-value transactions involving shares, mutual funds, etc.
• Interest received without TDS deduction, for Form 15G/H
• Tax deducted on selling immovable property
• Details of turnover as per GSTR3b

3. Updated Additions to Form 26AS

Recent updates to Form 26AS from the Income Tax Department include: 

• Foreign remittance details in Form 15CC
• Data from Annexure-II of last quarter's Form 24Q about TDS on salary
• Information from other taxpayers' ITRs
• Interest on income tax refund
• Form 61/61A details for PAN population
• Off-market transactions report by Depository/Registrar and Transfer Agent
• Mutual fund dividends report by Registrar and Transfer Agent
• Mutual fund purchases information by Registrar and Transfer Agent (RTA)

4. Sample of Form 26AS

Below is a sample of Form 26AS, giving you an idea of its appearance and layout:

5. Structure and Parts of Form 26AS

Form 26AS is divided into ten parts, each containing specific information related to tax deductions, credits, and transactions. Let's explore each part in detail:

Part I: Tax Deducted at Source Details

This section provides taxpayers with the details of Tax Deducted at Source (TDS), including interest income and pension income. It also mentions the TAN (Tax Deduction and Collection Account Number) of the deductor and the amount of TDS deducted and deposited with the government every quarter.

Part II: 15G/H Tax Deducted at Source Details

This part includes details about TDS for Form 15G/15H. If Form 15G/15H has not been submitted, this section will display "no transactions present."

Part III: Transaction Details under Sections 194B, 194R, 194S

This part contains details of transactions falling under specific provisions of the Income Tax Act, such as section 194B, section 194R, and section 194S.

Part IV: Details of TDS on Property Sale, Rent and Payments to Contractors (For Seller/Landlord/Payee) and Virtual Digital Asset Seller U/S194S

This part contains details of tax deducted at source on the sale of immovable property (section 194IA), TDS on rent of property (section 194IB), and TDS on payment to resident contractors and professionals (section 194M).

Part V: Details of Transactions under Proviso to sub-section

This part provides details of transactions falling under specific provisions of the Income Tax Act.

Part VI: Details of Tax Collected at Source

This part contains details of Tax Collected at Source (TCS) by sellers of goods.

Part VII: Details of Tax Collected at Source

This part provides additional details on Tax Collected at Source (TCS) by sellers of goods.

Part VIII: Tax Deduction Details (For Property Buyers/Tenants, Contractors, Professionals, Virtual Asset Buyers)

This part contains details of tax deducted at source under various sections of the Income Tax Act, including section 194IA, section 194IB, section 194M, and section 194S.

Part IX: Details of Transactions/Demand Payments under Section 194S - Form 26QE (For Virtual Digital Asset Buyers)

This part provides details of transactions or demand payments falling under specific provisions of the Income Tax Act, section 194S, as per Form 26QE.

Part X: TDS/TCS Defaults (Processing of Statements)

This part deals with TDS/TCS (Tax Deducted at Source/Tax Collected at Source) defaults and the processing of statements.

6. How to View and Download Form 26AS

Before submitting your tax return, check your Form 26AS to verify the tax deposited in your account with the Income Tax Department. You can view and download Form 26AS in three ways: 

Through the Income Tax Department's e-filing website

1. Visit the Income Tax Department's e-filing website: https://www.incometax.gov.in/iec/foportal/.
2. Click on the "Login" option on the top-right side of the page.
3. Enter your PAN number, password, and other required details.
4. Once logged in, go to the e-file tab and select "Income Tax Returns" from the drop-down menu.
5. Choose "View Form 26AS" and click on "Confirm." This will redirect you to the TRACES website.
6. Select the appropriate assessment year and view the Form 26AS online or download it as a PDF.

Using Net Banking

1. Access your bank's internet banking website.
2. Look for the option "Tax Credit Statement" or "TRACES (26AS) Services" to view Form 26AS.
3. Follow the instructions provided by your bank to access and download Form 26AS.

Accessing TRACES Online

1. Register on the TRACES website as a taxpayer. Visit https://www.tdscpc.gov.in/app/tapreg1.xhtml to register.
2. After successful registration, select "View tax credit statement" to access Form 26AS.

7. Form 26AS Discrepancies: What to Do?

Sometimes, differences between the TDS in your Tax Return and in Form 26AS may occur. This can be due to late TDS deposit, wrong PAN entered by the deductor, or not filing the TDS return.

If you encounter such a discrepancy, it is crucial to inform the deductor immediately to rectify the mistake. Failure to correct the mismatch can result in the disallowance of tax credits, leading to the payment of double taxes and potential penalties or interest charges for delayed tax payment.

8. Introduction of Annual Information Statement (AIS)

To enhance tax assessment and compliance, the Income Tax Department has introduced the Annual Information Statement (AIS). This statement incorporates additional details to provide a comprehensive overview of taxpayers' financial activities.

The AIS consolidates information on various transactions including foreign remittances, off-market operations, income tax refund interest, mutual fund purchases, and dividend details. It also includes salary breakdown from other taxpayers' ITRs. This strengthens the tax department's capacity in verifying income, deductions, and financial operations, thereby enhancing tax compliance and assessment accuracy.

9. Importance and Benefits of Form 26AS

Form 26AS holds significant importance for taxpayers in India. It offers several benefits that help taxpayers manage their tax obligations effectively. Here are some key advantages of Form 26AS:

Verification of Tax Deductions 

Form 26AS lets taxpayers check if the tax deducted by their employers or other parties has been correctly submitted to the tax authorities. It includes details of tax deducted at source (TDS) on salary, interest income, rent, and more. By comparing this information with their own records, taxpayers can confirm the correctness of tax deductions.

Income Tax Return (ITR) Filing Made Easy 

Form 26AS gives a comprehensive summary of tax payments like TDS, advance tax, and self-assessment tax. This is essential for correctly stating tax payments in the income tax return. Checking Form 26AS before submitting returns helps reduce errors or differences, ensuring a seamless ITR filing process.

Avoidance of Double Taxation 

Form 26AS is essential for individuals with income from various sources or taxes paid in multiple jurisdictions to avoid double taxation. It offers a complete overview of taxes paid, enabling taxpayers to claim tax credits or exemptions for taxes already paid in another country or income under double taxation avoidance agreements.

Financial Record-Keeping 

Form 26AS is a crucial financial record for taxpayers. It provides a comprehensive report of all tax-related activities, including tax credits, refunds, and outstanding demands. This aids in maintaining precise financial records and monitoring tax liabilities and refunds over time.

Resolving Tax Discrepancies 

Form 26AS is a reference document for discrepancies between tax credits claimed by taxpayers and reported deductions. Taxpayers can use this to identify and rectify discrepancies, such as contacting the deductors or tax authorities if required.

Transparency and Compliance 

Form 26AS enhances transparency in the tax system by offering taxpayers an overview of their tax details. It assists people to keep track of their tax duties, promotes timely tax returns filing, and fosters adherence to tax rules.

10. Conclusion

Form 26AS is a vital document for taxpayers in India, providing a comprehensive summary of their tax-related information. By understanding the structure and contents of Form 26AS, taxpayers can verify tax deductions, facilitate ITR filing, avoid double taxation, maintain financial records, resolve discrepancies, and ensure compliance with tax laws. It is crucial to review Form 26AS before filing your income tax return to ensure the accuracy of tax credits and payments. By staying informed and proactive, taxpayers can effectively manage their tax obligations and contribute to a transparent and compliant tax system.