What is 26AS Form? Applicability and Importance of Form 26AS in ITR Filing

What is 26AS Form? Applicability and Importance of Form 26AS in ITR Filing

Wanted to know what is 26AS Form? Read the complete article to know about the applicability and importance of Form 26AS in ITR filing. While filing tax returns, Form 26AS is one of the most important documents to check because it helps taxpayer to save his tax amount. Form 26AS documents the entire list of TDS, TCS, Advance tax, etc. paid by the taxpayer along with details of deductor in Financial Year. You can directly download Form 26AS while filing income tax returns from official e-filing website of Income Tax Department.

With effect from 1st June 2020, CBDT has also issued a notification for revised format and updated details available in Form 26AS. Read the complete article to get all the insights of 26AS Form.

What is 26AS Form?

Form 26AS is an annual consolidated tax credit statement that taxpayers can view, access or download. It is a summary of any TDS or TCS or Advance tax or Self Assessment Tax Payments, etc. made by the taxpayer. This form can be accessed by all taxpayers with the help of their PAN (Permanent Account Number) and you can download this from either of the three ways such as follows:

· the Income Tax department's e-filing website

· the Traces website

· the taxpayer’s internet banking

Importance of 26 AS in ITR filing process:-

Whenever any taxpayer pays any tax in advance or deposit it with government before filing returns then that taxpayer is not required to pay any tax on the income on which he has already paid the tax. But in case there is any mismatch in reports filed by the Deductor and Deductee then it is not possible for Deductor to claim that tax amount unless and until Deductor or Taxpayer is rectifying the error.

Let’s understand the above concept with the one illustration of Taxofile:

Suppose you have purchased a car worth of Rs.15 Lakhs, then while selling that car seller deducts 1% TDS which amounts to Rs. 15,000 /-

Now, there can be two possibilities:

Situation 1)

If the seller has deducted TDS and also has deposited the tax (Rs.15,000)  with government with the correct PAN of taxpayer and rest all the details; then details of such tax deduction will reflect in your account; and then you are not required to pay tax as you have already paid it and it has also reflected in your account.

Situation 2)

If the seller has deducted the TDS but did not deposit the tax or made any mistake while putting your Permanent Account Number (PAN) then you cannot claim for reduction of tax amount but in this case, you can ask deductor to rectify the mistake. You need to ask deductor to file revised TDS return and if deductor files it with correct information then it will automatically reflect in your Form 26AS.

However, if the error is because of your mistake while depositing self-assessment tax, then the same can be corrected by making an application to the taxpayer's Jurisdictional Assessing Officer. Once the jurisdictional Assessing Officer rectifies the mistake, the correction will automatically reflect in the Form 26AS.

What are the Components of Form 26AS?

Form 26AS is consist of multiple elements such as follows: in this form you will get to know about all the advance tax paid by you.

Part A1: Details of Tax Deducted at Source for Form 15G/Form 15H

Part A2: Details of Tax Deducted at Source on sale of Immovable Property              u/s194(IA) (For seller of Property)

  • Part B: Details of Tax Collected at Source
  • Part C: Details of Tax Paid (Other than TDS or TCS)
  • Part D: Details of Paid Refund
  • Part E: Details of AIR Transaction
  • Part F: Details of Tax Deducted on sale of immovable property u/s194IA (For Buyer of property)
  • Part G: TDS Defaults* (processing of defaults)

How to view or download Form 26AS?

Following are the steps to view or download the Form 26As from e-Filing portal:

  1. Login to ‘e-Filing’ Portal www.incometaxindiaefiling.gov.in
Taxofile : What is 26AS Form? Applicability and Importance of Form 26AS in ITR Filing

2.  Go to the 'My Account' menu, click 'View Form 26AS (Tax Credit)' link.

Taxofile : What is 26AS Form? Applicability and Importance of Form 26AS in ITR Filing

3. Read the disclaimer, click 'Confirm' and the user will be redirected to TDS-CPC Portal.

Taxofile : What is 26AS Form? Applicability and Importance of Form 26AS in ITR Filing

4. In the TDS-CPC Portal, Agree the acceptance of usage. Click 'Proceed'.

Taxofile : What is 26AS Form? Applicability and Importance of Form 26AS in ITR Filing

5. Click ‘View Tax Credit (Form 26AS)’

Taxofile : What is 26AS Form? Applicability and Importance of Form 26AS in ITR Filing

6. Select the ‘Assessment Year’ and ‘View type’ (HTML, Text, or PDF)

Taxofile : What is 26AS Form? Applicability and Importance of Form 26AS in ITR Filing

7. Click ‘View / Download’

Taxofile : What is 26AS Form? Applicability and Importance of Form 26AS in ITR Filing

Note: To export the Tax Credit Statement i.e. Form 26AS as PDF, view it as   HTML > click on ‘Export as PDF’

New Changes in 26AS :

The Central Board of Direct Taxes (CBDT) has notified a new Form 26AS vide Notification No.30/2020 dated 28th May, 2020 through which Rule 31AB has been omitted and a new Rule 114-I has been inserted. Changes have become effective  from 1 June 2020 replacing the earlier Form 26AS.

Form 26AS provides information for a particular financial year. The new Form 26AS seeks to provide following additional data:-

  1. Additional Basic details about PAN Holder
  2. Details of specified financial transactions
  3. Tax demands and tax refunds
  4. Pending and completed income tax proceedings

1. Additional Basic Details about PAN holder in form 26AS

Presently, Form 26AS was disclosing Name, PAN and address of PAN Holder. However, revised Form 26AS will contain information following additional information also:

  1. Aadhar Number
  2. Date of Birth
  3. Mobile Number
  4. Email Id

Present 26 AS

New 26 AS

Name of PAN Holder

Name of PAN Holder

PAN

PAN

Address of PAN Holder

Address of PAN Holder
-
(Additional Info Newly Added)
-
Aadhar Number
-
Date of Birth

-

Mobile Number

-

Email Id

2.Details of specified financial transactions in form 26AS

With an objective to reduce undisclosed income, Income tax act has created onus on various parties such as Banks, Stock brokers etc. to report specific financial transactions to IT department.

Specified Financial transactions includes:


Nature of Transaction

Reporting Person
   
Aggregate cash deposit for Rs 10 lakhs or more in   saving bank account   
   
Bank or Co-operative Bank   
   
Cash deposit   or withdrawal amounting Rs. 50 Lakhs or more in one or more current account   of a person in a year   
   
Bank or   Co-operative Bank   
   
Cash received for amount exceeding Rs. 2 Lakhs   for the sale of goods or rendering of services.   
   
Any person who is liable for tax audit under   Section 44AB   
   
Expenditure   in foreign currency via debit card, credit card or traveller’s cheque for the   amount Rs.10 Lakh or above in a year.   
   
Authorised   Dealer, Money Changer, Offshore Banking Unit, Any other person authorised to   deal in foreign exchange or foreign securities   
   
Payment by credit card amounting Rs.10 Lakhs or   above in a year   
   
Credit Card Issuing Authority   
   
Credit card   bill paid in cash for Rs 1 lakhs or more.   
   
Credit Card   Issuing Authority   
   
Purchase or sale of immovable property having   value of Rs. 30 Lakhs or above.   
   
Inspector-General or Registrar or Sub-Registrar   under the Registration Act, 1908   
   
Mutual Fund   Investment in a year of Rs 10 lakh or more.   
   
A trustee of   a Mutual Fund or such other authorized person managing the affairs of Mutual   Fund   
   
Purchase of bonds or debentures for Rs 10 lakh or   more in a year.   
   
A company or institution issuing bonds or   debentures   
   
Purchase of   shares of company for Rs 10 lakh or more.   
   
A company   issuing shares   

3.Information about Income Tax Demand and Refund in New form 26AS

Presently, information related to Income tax demand and refund are available after login into the Income tax portal under specific tab. However, now Form 26AS also contains details of Income tax demand and refund.

Earlier, information related to Income tax refund paid was available. Now, it is yet to check whether it shows details of refund due or not.

Information related to Income tax proceedings was available post login at Income Tax portal under specific tab. However, in new Form 26AS such information has been incorporated in Form 26AS itself.

Therefore, details of pending proceedings against PAN holder will auto-populate in Form 26AS.

Below mentioned are the new fields added in New 26AS Form .

   
S.No.   
   
Nature of Information   
   
1   
   
Information related to TDS/TCS   
   
2   
   
Information related to Specified   Financial transactions   
   
3   
   
Information related to taxes payment   
   
4   
   
Information related to demand and   refund   
   
5   
   
Information related to pending   proceedings   
   
6   
   
Information related to completed   proceedings   

Link of Official Notification :- https://www.incometaxindia.gov.in/communications/notification/notification_30_2020.pdf

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