Understanding Form 26AS | Objective, Parts, Format and How To Download?

Understanding Form 26AS: Annual Statement or in short, Form 26AS, is a record that includes all tax-related information such as TDS, Tax Refund, and more linked with PAN. Tax Credit Statement illustrates how much of tax government has received and merged from numerous sources like pension, interest, salary, and others. The new format of Form 26AS involves more details like the Aadhaar card, email ID, and address. It is one of the vital documents that one needs to submit while filing the income tax return. So before filing ITR, the taxpayer should check the Form 26AS adequately for a certain financial year as it acts as a record that accurate taxes are deposited into the government account. Readout below to know more about the purpose of Form 26AS, its structure, and how to download it online.

What is the Objective of Form 26AS?

Form 26AS is an annual statement issued under Section 203AA of the Income Tax Act. It gets updated when tax-related transactions like Advance Tax paid, TDS Deducted, or others are reported for the financial year. The tax credit statement serves as one of the crucial income tax documents as:

• It captures information regarding taxes paid and other transactions conducted by the taxpayer.
• It gives a record of the tax paid by an individual in the annual income tax return (ITR).
• It provides proof concerning deduction and collection of tax on the behalf of the taxpayer.
• It confirms that accurate tax has been deducted by multiple entities and deposited into the account of the government.
• With Form 26AS, it is not essential to attach the TDS certificate photocopy along with ITR.

Parts of Form 26AS Structure

Annual Tax Statement or Form 26AS involves the following parts:

PART A- Details Regarding Tax Deducted at Source (TDS)

This section provides the information regarding the TDS deducted from pension income or salary and TDS deducted on interest income by banks. The deductions are shown as a distinct table. Entries in these tables follow reverse chronological order. It is vital to verify that all the entries match the entries in Form 16/16A along with the transaction date and booking status. If the entry in booking status is F signed then it means payment details of TCS/ TDS deposited in the bank have matched with the payment details provided in TCS/TDS statement filed. On the contrary, U entry in the status of booking shows details are unmatched.

The deductor refers to the entity that deducts tax on the behalf of the taxpayer while making the payment. If one has any query regarding entry in Part A, then they have to contact the deductor for clarification and required correction. Part A has further two sections namely Part A1 and Part A2.

PART A1- Details Regarding Tax Deducted at Source (TDS) for 15G/ 15H

This section demonstrates transactions in those financial institutions where one has submitted Form 15G/ 15H such as banks. As one has submitted 15G/ 15H, which means TDS would be zero. This part allows taxpayers to keep a track of all the interest gain that has not been taxed. If an individual has not submitted the 15G/ 15H form, then it will illustrate No Transactions Present as there is null entry in this section. One should contact the buyer or deductor if find any discrepancy to make essential corrections.

PART A2- TDS Details on Sale of Immovable Property

This section involves the details of TDS on the sale of immovable property under the Income Tax Act Section 194(IA). The details provided in this part are beneficial for the property seller as proof that the exact TDS has been deducted and deposited.

PART B- Details Regarding Tax Collected at Source

The seller collected the TCS from the buyer for certain categories. It involves scrap, Toll plaza, Parking Lot, and others. The rate of Tax Collected at Source is different for each category, and one has to submit it to the government. If the seller has not collected any tax, then this part will display No Transactions Present as there are no entries.

PART C- Details of Tax Paid

This section covers the paid Advance Tax or Self Assessment Tax. Whenever the taxpayer deposits their Advance Tax or Self Assessment Tax directly to the bank, the bank upload this information within three days once a cheque is cleared. For the Advance Tax, 0021 is used as individual major code and 100 as minor codes. 300 code is for Self Assessment Tax.

PART D- Details of Paid Refund

This section involves the details regarding any tax refunds received by an individual in that assessment year. If the taxpayer has not received any tax refund, then this part will display No Transactions Present due to null entries in this section.

PART E- Details of Transaction Regarding Annual Information Return 

When anyone makes some high-value transactions such as mutual funds or property investment, then banks report it to the income tax department and other authorities through AIR. Earlier the transaction limit to get reported in Form 26AS was 2 lakhs; however, after June 1, 2020, it has been increased to 10 lakhs.

PART F- Details of Tax Deducted on Sale of Immovable Property Under Income Tax Act 

This section offers a record of tax transactions for the property buyer. One has to contact NSDL or the concerned bank branch if find any discrepancy between the amount deposited and displayed in Form 26AS.

PART G- Details of Tax Defaults

This section displays the information about the tax defaults and processing of statements. It involves the details regarding the interest of TDS payments defaults, deduction default, financial year, interest under Section 220(2), and total default.

Latest Format of Form 26AS

• Personal Details: The earlier format of Form 26AS involved only the address picked from the PAN Card. However, the new format shows information regarding data of birth, Aadhaar number, mobile number, email ID, and address of the individual.
• Taxes and Proceedings Information: The Income Tax Department provides outstanding demand details. This type of information helps taxpayers determine whether the same demand is disputed or outstanding. Apart from it, ITD offers details of all income tax proceedings which have been completed and those which are pending. Such information is helpful for individuals to remain updated about the appeals.
• Financial Transactions Details: The updated Form 26AS involves the details related to stated financial transactions. It covers selling and buying of shares, payment of credit card bills, real estate, cash deposits, pre-paid instruments by RBI, and more.

How to Download Annual Tax Statement (Form 26AS)?

One can download Form 26AS online on the TRACES website or through the net banking facility of official banks. Visit the income tax filing website and log in by entering ITD login and password. In case, if anyone does not have an account, then they have to register first.

• Enter the User ID, password, the captcha code in the box provided, and then hit on Login.
• Click on the ‘My Account’ section appearing on the right side and then tab the ‘View Form 26AS’ option in the dropdown.
• Once clicked on the ‘Confirm’ option, it will redirect to the TRACES website.
• Select the box appearing on the screen, which asks if an individual agrees to the usage and acceptance of Form 16/16A, and then hit on Proceed.
• Click on the link hyperlinked as View Tax Credit to view Form 26AS.
• Select the Assessment Year and the format to see the Form. One can choose the HTML format to see it online or PDF format for downloading. After that, enter the Verification Code in the below-given box and then tap on View/ Download.

Conclusion

Form 26AS contains a detailed report about the taxes deducted and deposited. One can open and download the form by entering the Date of Birth as a password in DDMMYYYY format. Only a registered PAN holder has the right to view their Form 26AS through their bank and income tax statement.