A big part of income tax is collected in the form of Tax deducted at source (TDS). It is more common in the case of salaried employees. As per the income tax act 1961, anyone deducting tax at source is required to file a quarterly return of tax deducted to Director General of Income tax and needs to generate a certificate of TDS in evidence of tax having been paid by the assessee.
Earlier this information is used to be stored manually and there were no transparency of data between tax department and tax payers. As per the income tax act 203AA, with effect from April 1, 2005 income tax department needs to provide to the assessees an annual consolidated statement of TDS which is called as Form 26AS. It is an annual Tax statement regularly updated by income tax department. It allows tax payers to verify the Taxes paid under his account (PAN) to the Department, mainly TDS and advance tax.
Form 26AS is a consolidated tax statement issued under Rule 31AB of Income Tax Rules to facilitates a PAN holder to view its Tax Credit Statement (Form 26AS) online. This statement, with respect to a financial year, will include details of:-
- Tax deducted at source (TDS) :- Displays details of tax which has been deducted at source (TDS) by each person(deductor) who made a specified kind of payment.
- Tax collected at source (TCS) :- Displays details of tax collected at source (TCS) by the seller of specified goods at time these goods have been sold.
- Advance tax/self assessment tax/regular assessment tax etc., deposited in the bank by the taxpayers (PAN holders)
- Details of Paid refund received during the financial year.
Form 26AS has been introduced for the benefit of taxpayers, with the introduction of Form 26AS taxpayers can view there complete tax status in the form of consolidated tax statement and verify the details available in the system of Income tax department with the one available to the taxpayer. If you are a taxpayers, and want to ensure the tax deducted at source (TDS) is reflected correctly in the income tax records then you can check your Form 26AS. Lets take an example: A taxpayer had TDS deduction in the financial year which was also recorded at Tax Information Network (TIN) maintained by the NSDL. According to the NSDL, tax deducted from his income is Rs 25000, whereas the actual deduction happed to his income aggregates Rs 45000. The TDS certificate obtained from various payers reflects the deduction amount as Rs 45000. In such a case a taxpayer can verify his details in Form 26A against the TDS certificate obtained before filing return to get this details corrected and save urself from getting penalising for the inaccurate data of maintained at other end.
In case of any mistake/error with regards to tax deposited by the tax payer through the bank (advance tax or self-assessment tax) – one should contact the branch/bank where the advance tax or self-assessment tax was paid. In case of any mistake/error with regards to tax deducted/collected by the bank and others – one should contact the bank/other person who has deducted/collected such tax.
It is always advisable to verify the proper credits of Taxes paid (mainly TDS and also Advance Tax / Self Assessment Tax) reflected in your Form 26AS before filing your Income Tax Return (ITR) for faster processing.
It helps to taxpayers in following aspect of tax responsibility
- Preparing income tax returns
- Verify detail of tax deducted at source(TDS)
- Verify detail of tax collected at source
- Verify detail of tax payment made by taxpayer (advance tax/self assessment tax)
- Detail of refunds received during the financial year
How to View Form 26AS Online?
The scope of Form 26AS is widened to a great extent. Tax payer can now access this facility either with his Registered Login at NSDL website, or at Online Banking Accounts (few of the banks) or at www.incometaxindiaefiling.gov.in
- Option 1:
- Register with your Pan card number for viewing Form 26AS by registering for e-filing on https://incometaxindiaefiling.gov.in . Registration is immediate, without any cost and does not obligate e-filing,
- After logging in click on My Account tab
- There will be an option View Your Tax Credit Statement (Form 26AS)
- It will take you to Date Of Birth (DOB) verification page
- In the next step it will ask your permission to be redirected to the NSDL site where you have to press the confirm button
- You will be re-directed to your Form 26AS and you can select the assessment year (2011-12) in the top right corner for which you want to see the details.
- Option 2: Through net banking facility of 19 authorized banks. Login to your net banking account and check if this facility is provided.
- Option 3: Through registration with NSDL
The form, however, is no substitute for the advance tax, Form 16 and the TDS certificates that one needs to attach while filing his/her income tax returns.