Form 26 AS is issued under section 203AA of the income tax act. It contains the details of tax deducted at source. Form 26AS include various details which are as follows:
- Form 26 AS contains the details of taxes paid tax refunds that have been received.
- The purchaser of immovable property deducts tax at source from the consideration paid. The details of the tax deducted by the purchaser will be shown in form 26 AS.
- The tenant (if the rent is more than RS 50000 received by resident Indian) is required to deduct tax at source. It will be reflected in form 26AS
- The purchaser of a car (If the sales price is more than 10 lakhs) will pay tax @1% of the sales price to the seller. The same will be deposited by the seller of the car in buyers’ name with the Government treasury
- Details of the high-value transactions made through banking and financial institutions will be shown in form 26 AS. For example purchase of high-value mutual funds, corporate bonds, etc.
- In case someone has paid any advance tax or self-assessment tax during the year, the same shall also get reflected in Form 26AS.
Form 26 AS also contains details of the deductor such as their names and tax deduction account number.
So form 26AS is a document that contains all the taxes paid by way of deduction or otherwise in one place making it convenient for tax players to claim an input tax credit.
The introduction of form 26 AS has removed all the difficulties to submit TDS certificates by the taxpayers. The information in the Form 26AS is generally updated on a quarterly basis. The year-end tax credits as reflecting in Form 26AS are eligible to be claimed while filing the tax return.
However, the taxpayer is required to verify the details in form 26 AS and highlight the difference (over/under-reporting ) to the tax deductor to make necessary rectifications. It is necessary for every taxpayer to make sure that taxes claimed are in line with taxes appearing in form 26AS.
It is really quick to download form 26 AS in two ways:
- Through the income tax official website
- Online via the bank’s website.
Form 26 AS is divided into seven parts
- Part A: Tax deducted at source
- Part B: Tax collected at Source
- Part C: Details of taxes paid (other than TDS/TCS
- Part D: paid refund
- Part E: AIR transactions
- Part F: Details of Tax deducted at source on sale of immovable property
- Part G: TDS Defaults
IMPORTANCE OF FORM 26AS
Form 26 AS gives a clear and concise view of all the taxes that have been deducted against PAN Number and paid to the Government. Form 26 AS must be seen by every taxpayer before filing a tax return for the year. Through Form 26 AS, a taxpayer knows exactly how much tax has been deducted at source for the relevant financial year to derive the financial tax payable before filing the tax return.
In case, the tax deducted shown in TDS certificates is not shown in form 26 AS, either the amount is not paid to the government or it may be the mistake or delay in filing TDS return by the deductor. In such a case, it can be corrected by the tax deductor.
It is a clear, concise summarised document to keep track of the tax-related transactions. It also contains the details of other financial transactions via AIR reporting. Thus it helps in reporting quickly.