Income Tax Return: Why You Need Form 26AS When Filing ITR?

Form 26AS is a statement which shows various details including tax deducted or collected at source, Advance Tax or Self-Assessment Tax, Specified Financial Transactions Demand/refund pending/completed proceedings for a taxpayer’s Permanent Account Number as per Income Tax Department’s database.

It is important to note that Form 26AS is not filed by the taxpayer themselves, but it is generated and made available by the Income Tax Department of India through their online portal. Taxpayers can access their Form 26AS by logging into their account on the Income Tax Department’s website.

Form 26AS is a consolidated tax credit statement issued by the IT Department. It contains details of all the taxes that have been deducted from your income by your employer, bank or any other deductor, and deposited with the government on your behalf.

A taxpayer may pay tax in any of the following forms:

– Tax Deducted at Source (TDS)

– Tax Collected at Source (TCS)

– Advance tax or Self-assessment Tax

The Income Tax Department maintains a database of the total tax paid by all taxpayers, which is called tax credit in the taxpayer’s account. The ITD generally allows taxpayers to claim the credit of taxes as reflected in their Form 26AS.

Who Requires Form 26AS?

Form 26AS is required to be filed by anyone who has a PAN and has received any of the following types of income during the financial year:

Income from;

– Salary or pension

– Interest on fixed deposits or savings account

– Rent

– Capital gains

– Dividends

– Any other source where tax has been deducted at source (TDS) by the payer

Form 26AS includes details such as the name of the deductor, the amount of tax deducted, the date of deduction, the date of deposit with the government, and other relevant details. It also includes information on tax refunds and any other tax-related information that may be relevant to you.

Form 26AS is an important document that you should refer to while filing your income tax returns as it helps you verify the taxes deducted and deposited on your behalf. It also helps you in claiming any tax credit for the taxes deducted at source.

Read all the Latest Business News here