Form 26AS provides a summary of all the tax deducted at source (TDS) from your income. This includes tax deducted on salaries, interest, rent, professional fees, commission and other sources, allowing you to see how much tax has been paid on your behalf.
You can access Form 26AS online through the Income Tax Department’s e-filing portal by logging in with your credentials.
Form 26AS and AIS are two essential documents for taxpayers to file their income tax return in India. Here are key reasons why Form 26AS is important for income tax return filing and tax compliance.
Tax credit tracking
Form 26AS helps you check and verify that the tax deducted by your employer or other parties is correctly reflected in your tax records. This is crucial for ensuring that you receive the proper tax credit when filing your return.
If tax deducted is not reflected in Form 26AS, then you need to check with the deductor. Maybe your deductor has not filed TDS returns with the tax department. After filing TDS return, tax credit will be shown in form 26AS.
Even tax collected at source (TCS) also reflects in Form 26AS.
Therefore, it allows you to track the amount of tax that has been deducted / collected and deposited against your PAN. Taxpayers must ensure that they get due credit before filing income tax return.
Verification of Income
Form 26AS lists down the detailed source of income and sections under which tax has been deducted by the deductor.
This helps you track whether the amount is accurately shown under the right income sources in income tax return. This reconciliation can prevent further scrutiny and audit.
Helps in claiming refund
If you have excess credit in form 26AS, claiming refund is a good idea.
By regularly checking your Form 26AS, you can ensure that the TDS deducted by your employers or other entities matches what is reported to the tax authorities.
It provides proof of the amount of tax paid, facilitating the refund process during the income tax filing.
Helps in filing tax return
Form 26AS is an important tool for accurately filing your income tax return. It provides the necessary details to claim tax credits, ensuring you don’t pay more tax than required. This minimizes the chances of errors, leading to a smoother filing process.
By cross-checking Form 26AS with your records, you can ensure that there are no discrepancies between the TDS shown in your Form and what has been deposited with the government. This can help you avoid penalties and interest due to under-reporting of income.
Lending support
Banks and financial institutions may request Form 26AS during loan applications. It serves as proof of your income and tax compliance, improving your credibility as a borrower.
Form 26AS plays a vital role in ensuring tax compliance, accuracy in filings, and the overall financial health of taxpayers. Regularly monitoring this document can help avoid issues with tax authorities and ensure you take full advantage of your tax credits.
In addition to TDS, Form 26AS also records any self assessment tax paid, refund obtained, TCS and advance tax payments made by you, which can further reduce your net tax liability.
Understanding and regularly checking your Form 26AS is crucial for effective tax planning and compliance.
