Understanding annual tax statement(Form 26AS)

Hi all,

We have got multiple queries during employee interactions.

How and what is the easiest way to verify and understand the annual consolidated tax statement(Form 26AS)?

Please suggest.

Thank you.

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Hi @Ann

Form 26AS is an document that has complete information on the tax remitted against your PAN.

It also acts an interment FORM 16 for some cases where Form 16 gets delayed.

Even for some loan purposes / while switching the Org. in between the FY Form 26AS plays a major role.

So basically 26AS in Annual format is a repository / Document of all the tax remitted against your PAN in this FY.

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Form 26AS is basically a consolidated tax credit statement that has all details of various taxes deducted on your income at source. This information is classified quarter wise and client wise based on TAN number. In case you are employed, the Form 26AS will map your employer based on the TAN number. You can access Form 26AS from the tax department’s website. Some banks also provide access to Form 26AS for their account holders. If you have an internet access to your bank account, then you have the facility to directly access your Form 26AS from the secured area of the bank login itself.

In a way, the Form 26AS is like the tax passbook which enlists the detail of taxes deposited on account of taxpayer during the financial year. These taxes can be in form of TDS (tax deducted at source), TCS (tax collected at source), and advance-tax and self-assessment tax. All kinds of taxes paid against your PAN number are captured in this report in a very comprehensive manner.

Form 26 AS provides detailed information about all transactions where tax has been deducted by various entities on behalf of the tax payers. The form also captures details of other taxes paid by you and high value transactions conducted by you. Form26AS is one of the important forms required at the time of filing Income Tax Return and is divided in to seven parts:

  • Part A: Details of Tax deducted at source (TDS)
  • Part B: Details of Tax collected at source (TCS)
  • Part C: Details of taxes paid (other than TDS/TCS) and includes Advance tax/ self assessment tax/ regular assessment tax etc. deposited in the bank by you
  • Part D: Details of paid refund
  • Part E: Details of AIR transactions
  • Part F: Details of Tax Deducted at Source on Sale of Immovable Property u/s 194IA(For Buyer of Property
  • Part G: TDS Defaults

Ideally, the TDS data on your Form 26AS should exactly match the tax paid data shown on Form 16 Part A provided by your employer. Additionally, Form 26AS also contains TAN (Tax Deduction Account Number) details of your employer. But that’s not all that Form 26AS shows as it contains details of any and all TDS that has been deducted from your income/profits and deposited with the government tax authorities. Some of the key types of TDS entries that you can find on Form 26AS are:

  • TDS on bank fixed deposit interest earned.
  • Details of advance tax, self-assessment tax and/or regular assessment tax deposited.
  • Details of income tax refund received by you during the fiscal.
  • TDS deducted by renter on rent in excess of Rs. 50,000 per month.
  • TCS (tax collected at source) information.
  • Records of mutual fund purchases in excess of Rs. 2 lakh (high-value transactions).
  • Details of high value property transactions recorded through AIR (Annual Information Return) mechanism.

These details as captured in Form 26AS and can play a key role in helping an income tax assesse file their Income Tax Return swiftly and without errors. Additionally, in case of discrepancy, the tax assessee can get in touch with appropriate tax authorities and seek resolution/redress of the situation.

  • New form 26AS will also provide information in respect of “Specified financial transactions”.
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