Income Tax Return: It can be quite overwhelming to file an Income Tax Return, particularly if you are a first-time taxpayer. Form 26AS, commonly known
as the Tax Credit Statement, is one of the most important documents in filing the return. It gives you an overall picture of the taxes paid by you in a financial year, which encompasses TDS (Tax Deducted at Source), TCS (Tax Collected at Source), and advance taxes. By knowing this form, taxpayers can get their ITR correct and prevent discrepancies with the Income Tax Department.
What is Form 26AS?
Form 26AS is a single consolidated statement released by the Income Tax Department that maintains a record of all taxes paid or received against your PAN (Permanent Account Number). It contains the following:
- TDS on Salary: Tax deducted by your employer from your salary.
- TDS on Interest and Other Income: Tax deducted on bank interest, dividends, or professional fees.
- TCS (Tax Collected at Source): Taxes collected by sellers or service providers.
- Advance Tax and Self-Assessment Tax Paid: Any additional taxes you pay yourself.
- Refunds Received: Any tax refunds issued by the Income Tax Department.
Why is Form 26AS important for taxpayers?
1. Accuracy in filing Income Tax Return
One of the key reasons Form 26AS is vital is that it will assist in authenticating taxes deducted or collected. By comparing your own records of TDS, TCS, or advance tax payments with Form 26AS, you can confirm your ITR is accurate. Mismatching Form 26AS with your ITR may result in delays or even rejections in processing.
2. Refund claiming
If you have overpaid taxes throughout the year, these entries are reflected through Form 26AS, and you can claim the refunds accordingly. Without looking at Form 26AS, taxpayers can lose out on claiming valid refunds.
3. Loan and financial verification
It is common for banks and financial institutions to check Form 26AS when you are seeking loans or financial services. It gives them evidence of income and tax compliance, and they can approve their loans faster.
4. Monitoring taxes deducted by others
Form 26AS also helps you monitor TDS deducted by employers, banks, or other parties. This brings transparency so that all the deducted taxes are deposited with the government and credited to your account.
How to access Form 26AS?
You can access Form 26AS online through the Income Tax e-Filing portal or through net banking. Here's a step-by-step guide:
- Log in to the Income Tax e-Filing portal using your PAN and password.
- Navigate to ‘View Form 26AS (Tax Credit Statement)’ under the ‘My Account’ section.
- You will be redirected to the TRACES portal, where you can download the PDF version of Form 26AS.
It is recommended to download Form 26AS before filing your ITR to ensure all entries are correct and up-to-date.
Common mistakes to avoid
Not cross-checking TDS entries with Form 26AS.
Filing ITR prior to updating of Form 26AS, particularly in the case of recent TDS or advance tax payment.
Overlooking mismatches of PAN details, which may lead to errors while crediting the tax.
