Arjuna (Fictional Character): Krishna, as one reconcile bank transaction with the bank statements from time to time, now taxpayers are required to reconcile the income tax with Form 26 AS. What is this Form 26AS?
Krishna (Fictional Character): Arjuna, as in business one verifies receipts and payments for its correctness similarly income tax department has provided an option to all the taxpayers for verifying the taxes paid and tax deducted at source (TDS) with the help of Form 26 AS.
Arjuna: But Krishna, what is this Form 26AS and how it is important in Income Tax?
Krishna: Arjuna, Income Tax Department through a Centralized Processing Cell i.e. “TRACES” provides detailed information of taxes paid by taxpayer and Tax Deducted at Source (TDS) in Form 26 AS. Further in this form Income tax department has also provided information of refund issued to the taxpayer of the earlier years. This facility is available to all the taxpayers i.e. salaried people, businessman, professionals, etc. Hence everyone should check Form 26 AS every year.
Arjuna: Krishna, Please tell in detail about Form 26 AS?
Krishna: Arjuna, Form 26 AS is divided in six parts as follows:
Part A: In this part the detailed information of tax deducted by other party as per Income Tax Act Tax i.e. TDS is given. In this year wise information as per tax deductor and TAN, section under which tax is deducted, date of transaction, amount paid, tax deducted and paid is mentioned.
Part B: In this part the detailed information as above for Tax Collected at Source (TCS) is mentioned.
Part C: In this part the details of taxes paid (other than TDS or TCS) like advance tax, self-assessment tax is provided.
Part D: In this part detail of earlier years refund given is provided.
Part E: If taxpayer has performed specified transactions as given in Income Tax Act then they are shown in this part.
Part F: In this part detail of tax deducted at source on specific sale of immovable property for buyers is given.
Arjuna: It means Form 26 AS is a complete statement for reconciling income and tax. Krishna, now tell how one should verify books of accounts with the Form 26 AS?
Krishna: Arjuna, taxpayer should verify each entry of TDS and TCS given in Form 26 AS with his books of accounts. If any entry is missed or incorrectly entered then it should be corrected. Further if we do not find entry of particular transaction then taxpayers needs to communicate the same to the tax deductor and ask him to deduct tax if not deducted as per the act and if not paid, then pay the tax and file the TDS returns. It is observed that many people do not file proper TDS returns which creates problem for tax deductees. Further taxpayer should check if income tax refund is shown in 26 AS then is it actually received or not and properly accounted with interest or not.
Arjuna: It means taxpayer can easily verify Form 26 AS and if there are any discrepancies then he can rectify the same. What precaution taxpayer should take while filing the income tax return?
Krishna: Arjuna, taxpayer while filing the income tax return should reconcile the books of accounts with TDS and TCS as mentioned in the Form 26 AS. If TDS, TCS, taxes paid are not reflected in Form 26 AS then it is difficult to get the credit of the same in income tax and unnecessary hardship of demand and rectification application, etc. may arise.
Arjuna: Krishna, Now tell from where and how one will get Form 26 AS?
Krishna: Arjuna, any taxpayer can easily get his Form 26AS. Taxpayer will have to get himself registered on www.incometaxindiaefiling.gov.in. While making registration taxpayer should give correct Email ID and Mobile number. After registration taxpayer should login to his account with the PAN, password and date of birth / incorporation. Taxpayer should check his Form 26 AS from the given option in “My Account Window”. Taxpayer can take the printout of the same or he may save Form 26 AS in html, text format or PDF format. Taxpayer can view Form 26 AS of six years.
Arjuna: It is very simple to get the Form 26 AS. Every taxpayer should not forget to reconcile his taxes so that he can lead a easy financial life.
Krishna: Arjuna, from time to time in every business every taxpayer has to reconcile his bank accounts, debtors, creditors, taxes. Same is the case in life where one needs to reconcile issues with people. Money comes and goes but maintaining relations with others is very important, because relations help throughout the life. If we do not reconcile books of accounts then they will reflect incorrect figures. If one receives taxable income from any location of India where TDS is deducted then it is reflected in Form 26 AS. Form 26 AS is one type of mirror of taxes. Mirror never speaks false. Therefore one should file Income Tax returns after verifying Form 26 AS.
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