A complete guide on What is Form 26AS?, How to Download Form 26AS? And FAQs on Form 26AS of Income Tax

Form 26AS, often known as a Tax Credit Statement, is one of the most important tax forms for any taxpayer. It appropriately reflects the tax you have paid to the IRS, either directly or indirectly through other taxpayers. In this article, there is detailed information on what is Form 26AS, Form 26AS of Income Tax, How to download Form 26AS from TRACES, and other information on Form 26AS TRACES is discussed.

Introduction

Your Tax Credit Statement, also known as Form 26AS, is an important tax document. Gone are the days when filing IT returns required manually downloading Form 26AS. Form 26AS has been updated by the Internal Revenue Service to contain more and more information. The statement’s scope has now been broadened to include information on international remittances, mutual fund purchases, dividends, and refunds, among other things.

What is Form 26AS?

Form 26AS is a consolidated yearly tax statement that includes information on taxes deducted at source, taxes collected at source, assessee advance tax paid, and self-assessment tax. This data pertains to a Permanent Account Number (PAN).

The form also includes information on the mutual funds, cash deposits or withdrawals from a savings account, sale or purchase of the real estate, and so on. When filing their Income Tax Return for the year, an assessee can claim the tax deducted on their Form 26AS.

Information on Structure of Form 26AS 

• Part A: Information of TDS

1. 1. Includes information of TDS (Tax Deducted at Source) for Form 15G/H.

   2. TDS on immovable property sales u/s194(IA) (for the seller of property).

   3. TDS u/s 194M on payments to local contractors and professionals (for a payee of resident contractors and professionals).

   4. TDS on property rent u/s 194IB (for the landlord of property).

• Part B: Information of TCS

The Tax Collected at Source (TCS) by the seller of goods is shown in Part B. The seller details on Form 26AS will disclose who has collected tax from you.

• Part C: Information on tax paid other than TCS and TDS

This information will appear if you have deposited any taxes yourself. You’ll find information on both advance tax and self-assessment tax here. It also contains details about the challan that was used to deposit the tax.

• Part D: Information on Paid Refunds

This section will contain, if applicable, details on your refund. The payment method, the amount paid, interest paid, and the payment date are all indicated, as well as the assessment year to which the refund pertains.

• Part E: Information on SFT Transaction

High-value transactions must be reported to the tax authorities by banks and other financial organizations. Purchases of high-value mutual funds, real estate, and corporate bonds are all reported here.

• Part F: Information on TDS (Tax Deducted at Source) on sale of Immovable Property

If you have purchased a property, paid rent to a tenant, or paid for contractual work or professional costs and deducted TDS. This section will detail the TDS you have deducted and deposited.

• Part G: TDS (Tax Deducted at Source) Defaults

Defaults relevant to statement processing are described below. Demands made by evaluating officers are not included.

• Part H: Information of turnover as per GSTR 3B

This section displays the taxpayer’s turnover as stated on the GSTR-3B form.

How to Download Form 26AS of Income Tax?

Step 1

• Visit the E-Filing Income Tax Return website.

Step 2

• Your user ID can be an Aadhaar number, a PAN card number, or any other unique identification. An error notification will appear if the user ID is wrong. Continue by providing information about a valid user ID.

• Another way to access your account is through net banking.

Step 3

• To ensure secure access, check the box underneath the notification. The default secure access message is ‘Login.’ The default secure message is used to verify the legitimacy of the income tax website. The taxpayer can design their own unique secure access message using the ‘Profile’ option.

• After you have entered your password, click Next.

Step 4

• The following screen will occur. From the drop-down option, choose ‘e-file.’ Under ‘Income Tax Returns,’ select ‘View Form 26AS’ from the drop-down menu.

• Form 26AS can be viewed online.

Step 5

• Click ‘Confirm’ on the disclaimer to be directed to the TRACES website (don’t worry, this is a mandatory step that is completely safe because it is a government website).

Step 6

• You’ve landed at the TRACES website (TDS-CPC). After picking the box on the screen, click ‘Proceed.’

Step 7

• Click View Tax Credit (Form 26AS) to view your Form 26AS’ is the link at the bottom of the page.

Step 8

• Choose the Assessment Year and the Form 26AS format you would like to view. If you want to view it online, leave the format as HTML. It’s also possible to save it as a PDF file. Once you have made your decision, enter the ‘Verification Code’ and click the ‘View/Download’ button.

Step 9

Once the above step is completed, you can download Form 26AS by opening it.

Information on new reforms for Form 26AS of Income Tax

Finance Act 2020 has broadened the scope of the new Form 26AS, which goes into effect on June 1, 2020. In the new Form 26AS, information acquired under a Double Taxation Avoidance Agreement (DTAA), penalty proceedings, and other situations are covered.

The new Form 26AS is split into two sections:

Part A – This section comprises fundamental information such as the PAN, address information, assesses name, and Aadhar number.

Part B – This section contains information on the following transactions:

• Pending Proceedings

• TDS (Tax Deducted at Source)

• Demand and Refund

• SFT (Specified Financial Transaction)

• Payment of Taxes

Frequently Asked Questions (FAQs)

1. What do I do if the amount of TDS is wrongly reflected in my Form 26AS?

The reason for this may be that the deductor (Bank/Employer) has made an error in its data entry. You will have to take up this issue to deductor and rectify the amount by filing the TDS Statement on the Income Tax website.

2. Can I make changes to the name or other details of in Form 26AS?

Yes, if the details of the deductee are incorrect, you can  update this by filing an application through the ‘Request for new PAN card or/and changes or correction in PAN data’ option on the official Income Tax website.

3. What is the meaning of the date of booking and transaction date in Form 26AS?  

Date of booking means the date on which CPC has processed the TDS Return and amount gets recorded in Form 26AS. Whereas the transaction date means the date of credit or payment whichever is earlier.

4. Are Form 26AS and AIS the same thing?

Compared to Form 26AS, AIS (Annual Information Statement) is a a complete financial summary of all the data such as salary, interests accrued on fixed or Savings Bank Accounts, financial transactions like purchase and sales of  Mutual Fund (MF), Shares etc. or dividend received on it during the year, etc.

Conclusion

The new Form 26AS provides a more thorough view of the assesses financial information. A taxpayer should ensure that his income tax return and Form 26AS are filed simultaneously. Any inconsistency between the Form 26AS and the actual filing information should be avoided at all costs.