Babaria Media - Form 26as – All that you want to know [Complete Guide]

Form 26as – All that you want to know [Complete Guide]

 

Form 26AS

Form 26AS, is a statement of tax deduction, as specified in Section 203AA of the I-T Act 1961.
Form 26AS is just like a hint to the Tax payer, a checklist for the assessee to verify whether he has considered all the transactions executed by the assessee during the year in filing the return for the assessment year under consideration.
As we know, Income Tax department is keen to obtain information from various sources, of high value transactions entered into by the assessee, of the Deduction and Collection of Tax at source pertaining to all the transactions executed by the assessees during the year under consideration, with a view to ensure the correct assessment of total income earned by the assessee during the year under consideration.

A thorough review of Form AS entries in the filing of return for the AY under consideration, not only ensures the accuracy of the return but also reduces the chances of the return being selected for scrutiny under section 143(3) of the I-T Act, 1961.
It is, therefore, providing of Form 26AS to the assessee by the Income Tax department is like an angel in disguise for the assesses.

Brief Contents of Form 26AS:

• PAN of the assessee
• Current Status of PAN – Whether Active or Inactive ( Based on the returns filed by the assessee during the previous years )
• Financial Year for which the same is downloaded
• Assessment Year pertaining to the relevant Financial year
• Full Name of the Assessee ( as per PAN Records)
• Address of the Assessee (as per PAN Records)

As stated, the details reflected in Form 26AS are pure as per the data submitted the time of application for PAN.
In case, there is a change in address of any correction required in the details above, a separate application for correction in PAN data is required to be made, as per the procedure stated in the www.tin.nsdl website.
This form can be filled with both online and offline mode.

The procedure for downloading Form 26AS is detailed as under:

Step 1: Visit Incometaxindiaefiling.gov.in

Step 2: Click on Registered User - Login Here option

Step 3: Enter the User ID – which is the PAN No of the assessee , Password – as selected at the time of registration on the e-filing portal , Date of Birth in the DD/MM/YYYY and After entering all these details, a captcha is provided which needs to be typed in case sensitive format

Step 4: On this screen, click on My Account, and then the first option – View Form 26As – Tax Credit​

Step 5: After clicking on the said button, you will be taken to the following screen​

Step 6: When on this screen, click on the green button – Confirm , After which the following screen appears​

Step 7: Click on the provided checkbox which reads . I agree to the usage and acceptance of Form 16/16A generated from traces. Also, Click on the Proceed button after this. Then on this screen,

Step 8: Click on the View Tax Credit (Form 26AS) button

Step 9: Select the Assessment year and HTML format if you wish to view and PDF format if you wish to download from the checkbox.

Step 10: Then enter the verification code, which also is case sensitive. Lastly, if you have downloaded the PDF version, the password to open the said file is your 8 digit date of birth in DDMMYYYY format.
Now a days most of the net banking portals of various banks also given an option to navigate to Form 26AS and check your TAX Credits etc., provided your PAN is linked with the concerned bank ( which in the present era is the basic KYC requirement).
So one may find the said procedure simple to reach the destination – Form 26AS!!!
In a case wherein there are many entries in the Form 26AS, one may have to download the same through logging in to the TRACES Website also.

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The Form 26AS information is divided into various sub parts A to G containing respective details of the transactions entered into by the assessee during the year under consideration. If you want to get more information and comprehensive knowledge about tax in India, do check out taxadda.com, an amazing resource. The same is briefly discussed as under:

Part A - Details of Tax Deducted at Source

To ensure completeness of return, it is necessary to include incomes earned by the assessee on all the five heads of income. It is, therefore, the TDS provisions were brought with respect to all the five heads, into statute book evolving from time to time, just to track income by the IT department at the point of which the same is earned and that the TDS payments on a monthly intervals ensures a regular cash flow for the Government.
Accordingly, all the incomes earned by the assessee, above the respective threshold limits, specified in respective sections 192 to 195 of the I-T Act 1961 are available in Part of the Form 26AS.
Inclusions of all of these transactions or reconciliation thereof before the filing of returns is first and foremost key to having filed a complete return by the assessee.
Reconciliation of Incomes and TDS become mandatory when the methods of accounting used by the assessee are different, i.e. deductor follows mercantile method while the deductee follows cash method.
In such cases, TDS to be taken in return and to be shown as carried forward to subsequent years. This treatment shall ensure that there remain no cases of Tax Credit mismatch or that the incomes appearing in the year under considerations are taken to a logical conclusion.The Columns reflected in this Part A of the Form 26AS are as under:

The summary details are as under

• Sr. No
• Name of the Deductor
• TAN of the Deductor

• Total amounts paid/ credited
• Total Tax Deducted
• Total TDS Deposited

Apart from this, for the transaction-wise details of the aforestated deductors, the entry-wise transactions are reflected in sub part containing the following details, which can be viewed by clicking + sign appearing in the form, when viewed in HTML Format.
The TDS format by default reflects all the entries in summary as als in a detailed manner.

They are detailed as under:

• Sr. No of the transaction
• Section under which TDS is deducted ( 192 to 195)
• Transaction date
• Status of booking ( U – Unmatched, P – Provisional, F – Final and o – Overbooked)
• Date of booking

• Remarks ( details thereof are provided at the end of the last Part, Part G)
• Date wise amounts paid/credited
• Date wise tax deducted
• Date wise TDS deducted pertaining to each transaction reported in Form 26AS

After Part A, there is a Part A1 of the Form 26AS containing the details of TDS deductions supported by declarations filed by the respective deductors in form 15G/15H ( wherein Total Incomes do not exceed basic exemption limit or Agricultural income, as the case may be) filed by the assessee with the respective deductors.
This again is an income tracking mechanism by the I-T Department, even if TDS is not deductible.

The information reflected herein is as under:

• Sr. No
• Name of the Deductor
• TAN of the Deductor

• Total amounts paid/ credited
• Total Tax Deducted
• Total TDS Deposited

Further, for the details of transactions entered into with each Deductor( For, e.g., Interest credited to the deductee on quarterly basis shall reflect 4 transactions of interest income earned by the assessee deductor without having any amount of TDS deduction), the entry-wise transactions are reflected in sub part containing the following details

• Sr. No of the transaction
• Section under which TDS is deductible ( 192 to 195)
• Transaction date
• Date wise amounts paid/credited
• Date wise tax deducted – (Has to be NIL owing to submission of declaration in Form 15G/15H)

• Status of booking ( U – Unmatched, P – Provisional, F – Final and o – Overbooked)
• Date of booking
• Remarks ( details thereof are provided at the end of the last Part, Part G)
• Date wise TDS deducted pertaining to each transaction reported in Form 26AS - (Has to be NIL owing to submission of declaration in Form 15G/15H)

Further, Part A2 of Form 26AS contains the details of TDS on sale of Immovable property (For Seller of the property) which contains the following details:
In this column, the Gross sale consideration for the sale of property, chargeable to tax under the head Capital Gains/PGBP for Builders and Real Estate Developers is reflected. The details that are shown in this column are:

• Sr. No 
• Acknowledgement No of form 26QB filed by the purchaser
• Name of the deductor
• PAN of the deductor

• Transaction date
• Total Transaction Amount – ( Gross consideration- if one-time payment / Installment amount is TDS discharged on installments)
• Total TDS deposited

With further transaction wise statement containing details as under:

• Sr. No 
• TDS Certificate No
• Date of deposit
• Status of booking

• Date of Booking
• Demand payment
• TDS Deposited ( @ 1% of the payment / gross consideration)

The details in the detailed format contain entries wherein the TDS u/s 194IA are deducted on payment of installment basis, as against the one time TDS deductions.

Note: An important point to be noted here that in case the deductor files his TDS return which contains certain incorrect entries pertaining to the assessee, and upon being pointed out by the deductor, such corrections are shown as –ve entries in the Form 26AS thus evidencing that the return has been revised by the deductor.

In the case of-of such deletions, dates of corrections are also provided.
This correction with the respective dates shall be important points to prove the case, in the case wherein we have not included certain entries in the return, which could have been appeared in Form 26AS after the date of filing of the return of income by the assessee.
This can also absolve the assessee from concealment penalty or like.
This completes all the data available on the TDS deduction by the deductor.

Part B of the Form26AS deals with Tax Collection at Source

• Sr. No 
• Name of the collector
• TAN of the collector
• Total Amount Paid / Debited

• Total tax collected
• Total TCS deposited

With further Transaction wise details of the aforesaid transactions are provided as under

• Sr. No 
• Section requiring TCS collection
• Transaction date
• Status of booking
• Date of booking

• Remarks
• Amount Paid/debited
• Tax collected w.r.t that entry
• TCS deposited w.r.t that entry

This part B, of course, is applicable to a Limited category of the assesses, wherein the transactions specified in section 206C of the IT Act,1961 such persons engaged in transactions pertaining to Trading of Alcoholic liquor for human consumption, Tendu leaves, Timber obtained under a forest lease, Timber obtained from any other mode other than forest lease, any other forest produce other than tendu leaves and timber, Scrap Sales, Minerals being iron ore/lignite/ coal etc., Parking lots sale/ Mining and quarrying business or in he business of operating a toll plaza, etc.

Part C of the Form 26AS

contains details regarding the payments of taxes, other than TDS i.e. Advance Tax / Self Assessment Taxes/tax on Regular Assessment / Dividend Distribution Tax and all other taxes as contemplated under the various sections of the I-T Act 1961 like surtax, etc.
The Major and Minor code applicable to these taxes is explained in details at the end of the Part.The details displayed on this part are as under:

• Sr. No 
• Major Code
• Minor Code
• Tax
• Surcharge
• Education Cess

• Others
• Total Tax
• BSR Code
• Date of Deposit ( Having Significant impact in234 Interest Calculations)
• ​Remarks ( which is mostly blank under normal circumstances)
• Challan Serial Number

Part D of the Form 26AS

 It deals with Details of Refunds Paid by the Income Tax department to the assessee bearing the abovementioned PAN during the year under consideration, in spite of the fact that the refund may pertain to any of the previous years.The data reflected herein is as under:

• Sr. No 
• Assessment Year – ( Eg. 2016 denotes A Y 16-17)
• Mode – ECS/ Government (where Government means adjustment of refund against the outstanding Taxes appearing in IT Records
• Amount of refund paid

• Interest on refund included in the refund paid ( To be offered in the Tax Computation as the same is taxable ). However, in cases where the refund received is more than that claimed in return, but interest column is blank, you will have to offer the actual interest received to avoid further chances of litigation)
• Date of payment
• Remarks

Part E of Form 26AS

 contains the details of AIR transactions – as contemplated u/s 285A of the I-T Act 1961This part mainly deals with the outgo of funds, as against the Income parts discussed above.
The details stipulated herein contains details of Cash deposits into Savings/ Current Accounts exceeding a specified limit therein/ Payment of Credit Cards above Rs 2 lacs during a year/ Investment in Mutual Funds above Rs 2 Lacs during a year/ Investment in Bonds or Shares of a company above Rs 5 lacs in a year/Purchase or sale of Immovable property above Rs 30 lacs during the year and such other transactions as notified from time to time.
You shall appreciate that this payment being made by us towards deposits or investments are in essence, been verified to check whether the sources of these payments/ investments are commensurate with the returned income declared by the assessee.
In case of any mismatches or doubts, being very evident by the computer system itself, are the cases, that are selected for scrutiny to detect any tax evasion by such investors.Y
You might have read that recently in the Union Budget 2017, certain additional category of persons have been included for filing of Specified Financial Transactions (SFTs) like earlier AIR ( Annual Information Returns), wherein all the assesses subjected to Tax Audits u/s 44AB, have been recently asked to report the names of the parties from whom Cash Payments in excess of Rs 2 lacs have been received during the year.
You shall recall that a new section 269ST has been inserted wherein any payments more than Rs 2 lacs to a single person in a year made other than banking channels shall be subjected to 100% penalty of cash paid.
You shall appreciate that such information is a handle for the tax department to track such transactions easily, and take necessary penal actions against these assessees , and to make the assessee aware of such transactions being reported by against your PAN, the said information is also made available to assessee, by way of entries in Form 26AS for their necessary precautions/ reconciliation etc.

Part F of the form 26AS

refers to details of TDS on the sale of Immovable property (By the purchaser).Again, the data provided hereto are transactions of purchase of property by the buyer of the property ( i.e. the assessee himself, who has filed form 26QB and have deducted TDS u/s 194IA).
The source of investment into the immovable property is identified by the IT Authorities through this column.
The data reflected here in this part is as under:-PART F – Details of Tax Deducted at Source on Sale of Immovable Property u/s 194IA(For Buyer of Property)

• Sr. No 
• Acknowledgement Number
• Name of Deductee
• PAN of Deductee

• Total Transaction Amount
• Transaction Date
• Total TDS Deposited***

The transaction-wise details of these entries reflected herein are as under:

• TDS Certificate Number
• Sr. No.
• Date of Booking
• Demand Payment

• TDS Deposited
• Date of Deposit
• Status of Booking
• Total Amount Deposited other than TDS

As this column pertains to the summary of form 26QB filed by the assessee himself, the data for Interest / Penalty paid for delayed filing of Form 26QB are also available for perusal and records.
As these extra payments are not deductible as expenses in the computation of Total Income, under PGBP, and needs to be debited to Capital Account, also a separate treatment is required in the tax computation and becomes subject matter of verification by the Assessing Officer as to, whether the same has been claimed as tax deductible expenses or not.
Lastly, part G contains details of the TDS Defaults ( upon processing of TDS Returns – Statements filed by the assessee.

• Sr. No.
• TANs – In case of multiple TAN’s, TAN wise summary will be reflected
• Short Payment Interest on TDS
• Payments default

• Interest on TDS
• Deduction Default
• Late Filing Fee u/s 234E
• Interest u/s 220(2)
• Total Default

This ready information is available in Form 26AS of the assessee, it comes to the aid of the Tax Auditors also, wherein the clauses TDS reportings are required in Clause 34A/34B and 34C of the Form 3CD used for reporting the Tax Audit findings of the Tax auditor.
Also the assessee can take up necessary action against the defaults reflected in this Part and the assessee may make the necessary rectifications in the TDS statement filed or pay of the dues reflected herein and clear the defaults, so as to avoid further consequences of penal actions and prosecutions for these TDS defaults as specified in the I-T Act 1961.
Having analyzed the importance of this LIFELINE provided by the Income Tax Department to the Assessees, now look the image steps shown in the start of this article and download your Form 26As form now.
This was a guest post published by Umesh Joshi from Taxadda.com. Visit taxadda for  all the tax related gyaan in india.