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Decoding Form 26AS – A Handy Guide for Beginners

With the income tax filing season in full swing, it is only natural that each of us takes stock of our situation with regards to ensuring easy filing of income tax returns. Two of the documents that are considered to be key for the purpose of income tax filing are Form 16 and Form 26AS. The first of these is provided by the employer and only applicable to salaried employees/pensioners. The other one – Form 26AS is available for download on the TRACES (TDS Reconciliation, Analysis and Correction Enabling System) website and available to all tax assessees irrespective of whether they are salaried, self-employed or self-employed professionals. In the following sections we will discuss the key features and details of Form 26AS.   

What exactly is Form 26AS?

The official definition provided by the Income Tax Department defines Form 26AS as a tax credit statement that contains records of any and all transactions featuring TDS during a specific financial year. As a result, this document is also known as the Annual Tax Statement. In order to collect this data, the IT department uses your PAN (Permanent Account Number) which is mandatory for a range of financial transactions. The generation of this form is as per regulations specified in Section 203AA of the Income Tax Act, 1961

What information can I find in my Form 26AS?

The following are the key information that is available in your Form 26AS:

Your personal details such as Name, PAN, Address, Financial Year and Assessment Year

TAN (Tax Deduction and Collection Account Number) of deductor

Details of TDS (Tax Deducted at Source) deposited with the government including individual TDS deposits and date of each deposit

Break down of different types of TDS applicable to your transactions for the applicable AY

What are the Key Sections of Form 26AS?

Form 26AS features multiple parts each of which features data regarding a specific type of TDS applicable to transactions related to your PAN for the applicable period. The following is a short overview of each of these parts of the form: 

Part A – Tax Deducted by your Employer from salary payouts in lieu of income tax liability

Part A1 – TDS on bank FD/RD and other transactions on which Form 15G or Form 15H are applicable

Part A2 – TDS applicable to sale of immovable property (Section 194IA)and rent on property (Section 194IB) if you are seller or landlord

Part B – Detailed information of tax collected at source (TCS)

Part C – Details of Tax Paid apart from TDS and TCS

Part D – Refund paid by IT Department during the applicable FY

Part E – AIR (Annual Information Return) transaction TDS details

Part F - TDS applicable to sale of immovable property (Section 194IA)and rent on property (Section 194IB) if you are buyer or renter

Part G – TDS defaults information on processing of statements

How Do I Download Form 26AS? 

Form 26AS is available for free download from the TRACES website. You can complete the free download of the form in the following ways: 

Create and register for an account on the TRACES website

Log on to your Income Tax e-Filing Account and click on the Download Form 26AS

Log onto your Internet Banking account and locate the Download Form 26AS link located under the “tax services” menu (supported by most major public and private sector banks in India) 

If you avail the second or third option listed above, you will be redirected to the TRACES website where you can select the applicable FY and download the Form 26AS in PDF format or view it on the screen.  

Why do I need my Form 26AS? 

Form 26AS is the key document that the assessing officer utilises to view all applicable data of your income tax and TDS-related transactions for the applicable assessment year. In fact, the data featured in Form 26AS can be used in order calculate your income, TDS and tax liability, which is in fact what your assessing officer does. In case of a mismatch between TDS information between Form 26AS and any other tax document such as Form 16, the data contained in Form 26AS will supersede all other data. The following are the key reasons to download and check Form 26AS: 

Ensure correctness of data on other tax documents when compared to Form 26AS

Ensure that none of the TDS transactions have been missed

Ensure that your tax liability and income tax payable calculations are in line with details available in Form 26AS

What to do if there is a mismatch between Form 26AS and any other tax form?  

In case you find a mismatch between Form 26AS data vs. any other tax document, you need to address it immediately and get in touch with the applicable authority seeking a clarification. The following are the applicable authority you need to get in touch with depending on the section of Form 26AS where you find the discrepancy: