Form 26AS

In this blog, we discuss the Form 26AS in detail and how to verify your TDS certificate online.

To make sure that the TDS certificate is with corrected details, verify the details through FORM 26AS.

TDS certificates should be downloaded only from TRACES:

TDS certificates (Form 16/16A) issued are to be downloaded only from TRACES (TDS Reconciliation Analysis and Correction Enabling System of the Income Tax department).

The certificates which are downloaded from TRACES are in a specific format. A form downloaded from TRACES would have 7 character alphabet unique certificate number. It will also have a TDS-CPS logo on the left side and a national emblem on the right side at the top.

This certificate would provide the details of the income paid and also the tax deducted from that income by the payer. The payee can check whether the same has been deposited by the payer with the government.

The digital signature should be verified:

In case, the TDS certificate is digitally signed, check for the signature validity.  You need to make sure the signature has a check mark on it. An unverified signature will bear a question mark over the signature instead of the check mark.

Must check details on the TDS certificate:

The Name, PAN, Deductor’s TAN, Amount paid by payer, TDS amount should be correctly reflected on the TDS certificate.

What is Form 26AS and how to get it?

An annual tax credit statement is generated by the income tax department for a tax payee subjected to TDS (deductee) in the Form 26AS. The statement provides details such as the name of the deductee, PAN of deductee, details of the deductor, the TDS amount, the amount of TDS deposited with the Government by the deductor etc.

The user can download the statement from the income tax e-filing website. The downloaded statement is protected by a password. The password to open the file is the Date of birth of the user which he would have entered when registering with the income tax e-filing site.

This statement is linked to the PAN of the deductee and contains the details of all TDS by the employers as well as others (e.g. banks etc).

The link to download Form 26AS from TRACES can be found after logging into the user account at the income tax e-filing site.

It can also be downloaded via net banking account, provided the bank provides the e-filing login facility. The list of banks providing this facility is available at; contents.tdscpc.gov.in/en/netbanking.html

Cross check the TDS certificate figures with Form 26AS:

You should always verify whether TDS shown in the TDS certificate received from the deductor has actually been received by the government or not. This can be ensured by comparing the TDS certificate details with the Form 26AS.

It is the duty of a taxpayer to verify whether the deductor has deducted tax on each transaction on which it was supposed to be deducted. It is also required to check that TDS which is mentioned in the form 16/16A is reflecting in Form 26AS.

In case the TDS shown in TDS certificate is not reflecting in Form 26AS it would imply that even though the deductor has deducted the tax, the TDS has not been deposited or it has not reached the income tax department.

In case of any discrepancy between the TDS certificates and Form 26AS, you have to inform the deductor and ask for the reasons for this discrepancy and get it corrected. A possible reason behind the mismatch can be if PAN has been incorrectly entered in the records of the deductor.

In case the deductor has not deducted the tax, then it is the responsibility of the deductee to ask the deductor to deduct tax and deposit the same with government.

Components of Form 26AS:

Form 26AS will also reflect any advance / regular/ self-assessment tax that deductee pays.

The following details would also be available in your Form 26AS in case it is applicable:

  • TDS deducted by deductors (both Salary and Non-Salary)
  • TCS collected by the collectors
  • Details of the tax deducted on sale of Immovable Property (Form 26QB)
  • Refund received during the financial year
  • Details of your transactions in Mutual Fund, Shares, and Bonds, etc. (as reported by AIR filer)
  • TDS Defaults related to processing of  the Statements

A person deducting tax on account of buying an immovable property needs to submit TDS certificate to the seller in Form 16B.

Why TDS certificates when all information is available Form 26AS?

All the information related to TDS are available in Form 26AS which is sufficient to file one’s return. This will enable the taxpayer to cross check the details mentioned in TDS certificates with those mentioned in Form 26AS. This also creates a transparency in the details.

TDS certificates are important because these certificates and the Form 26AS are a cross-check for each other. In case there is a mismatch it can be corrected with relevant documents. Without the TDS certificate, information mismatch cannot be identified.

Next, the return goes through the IT department’s e-processing system. If it passes without any problem then TDS certificates may not be required to be shown / submitted. But in case the return gets picked up for scrutiny then the need of TDS certificates will raise. It has to be shown to the IT department when required.

This ends our blog on Form 26AS. If you have any queries kindly drop them in the comment section below.

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