Decoding The Form 26 AS

What is Form 26AS?

Form 26AS is a consolidated annual tax statement issued under Section 203AA of Income Tax Act and Rule 31AB of Income Tax rules to all PAN number holders.

This includes following details to tax payer based on various statements or returns filed by other persons or by assessee himself:-

  1. Details of Tax deducted and tax collected by other persons for such PAN. Therefore, Form 26AS provides a proof that tax has been deducted and collected on your behalf.
  2. Confirms that TDS has been deducted by different entities and deposited by the deducted into the account of government
  3. Details of Income tax deposited for corresponding PAN.

How to get Form26A

Form 26AS can be downloaded from TRACES website. To download Form 26AS, log in to your income tax filing account on the Income Tax department’s e-filing website, either directly or through the Net banking facility of authorized banks.

Once you log in, click on ‘View Form 26AS (Tax Credit)’ tab, either under ‘My Account’ or ‘Quick links’ tabs. You will be redirected to the TDS-CPC website to view this form. You will be redirected to the TDS-CPC website to view this form. You need to choose the relevant assessment year (i.e. year following the financial year) for which you want to download the statement. You can view HTML format and then click export as PDF to save as PDF file.

Verify your tax details in Form26AS

This initiative by the Income tax department of introduction of Form 26AS has obviated the need to submit the TDS certificates (Form 16 / 16A) by the tax payer along with the tax return.

However, the taxpayer is required to verify the details in the Form 26AS and highlight any discrepancy in the details (over / underreporting of income or taxes) to the tax deductor immediately to make necessary rectifications. This is to avoid any inquiry by the Income tax department on tax mismatch resulting in a tax demand due to non-availability of appropriate tax credit at a later date.

Therefore, it is important for every tax payer to ensure that the taxes claimed in the tax return are in line with the taxes as appearing in the Form 26AS.

Changes in New Form 26AS

Government is taking all the measures to collect information from counter parties, so that undisclosed incomes can be reduced to minimum. With this objective present form of 26AS has been replaced with “Annual Information Statement” which contains more auto-populated details about corresponding PAN.

The Central Board of Direct Taxes (CBDT) has notified a new Form 26AS vide Notification No.30/2020 dated 28th May, 2020 through which Rule 31AB has been omitted and a new rule Rule 114-I has been inserted. Changes have become effective from 1 June 2020 replacing the earlier Form 26AS.

Form 26AS provides information for a particular financial year. The new Form 26AS seeks to provide following additional data:-

  1. Additional Basic details about PAN Holder
  2. Details of specified financial transactions
  3. Tax demands and tax refunds
  4. Pending and completed income tax proceedings

Additional Basic Details about PAN holder in form 26AS

Presently, Form 26AS was disclosing Name, PAN and address of PAN Holder. However, revised Form 26AS will contain information following additional information also:

Aadhar Number
Date of Birth
Mobile Number
Email Id

Details of specified financial transactions in form 26AS

With an objective to reduce undisclosed income, Income tax act has created onus on various parties such as Banks, Stock brokers etc. to report specific financial transactions to IT department.

Specified Financial transactions includes:

Nature of Transaction

Reporting person

Aggregate cash deposit for Rs 10 lakhs or more in saving bank account

Bank or Co-operative Bank

Cash deposit or withdrawal amounting Rs. 50 Lakhs or more in one or more current account of a person in a year

Bank or Co-operative Bank

Cash received for amount exceeding Rs. 2 Lakhs for the sale of goods or rendering of services.

Any person who is liable for tax audit under Section 44AB

Expenditure in foreign currency via debit card, credit card or traveller’s cheque for the amount Rs.10 Lakh or above in a year.

Authorised Dealer, Money Changer, Offshore Banking Unit, Any other person authorised to deal in foreign exchange or foreign securities

Payment by credit card amounting Rs.10 Lakhs or above in a year

Credit Card Issuing Authority

Credit card bill paid in cash for Rs 1 lakhs or more.

Credit Card Issuing Authority

Purchase or sale of immovable property having value of Rs. 30 Lakhs or above.

Inspector-General or Registrar or Sub-Registrar under the Registration Act, 1908

Mutual Fund Investment in a year of Rs 10 lakh or more.

A trustee of a Mutual Fund or such other authorized person managing the affairs of Mutual Fund

Purchase of bonds or debentures for Rs 10 lakh or more in a year.

A company or institution issuing bonds or debentures

Purchase of shares of company for Rs 10 lakh or more.

A company issuing shares

There are various other transactions for which reporting is required. Therefore, any person having such transactions need to make proper disclosure in IT Return.

Information about Income Tax Demand and Refund in New form 26AS

Presently, information related to Income tax demand and refund are available after login into the Income tax portal under specific tab. However, now Form 26AS also contains details of Income tax demand and refund.

Earlier, information related to Income tax refund paid was available. Now, it is yet to check whether it shows details of refund due or not.

Information related to Income Tax proceedings in New form 26AS

Information related to Income tax proceedings was available post login at Income Tax portal under specific tab. However, in new Form 26AS such information has been incorporated in Form 26AS itself.

Therefore, details of pending proceedings against PAN holder will auto-populate in Form 26AS.

Benefit of Form 26AS while filing Income tax return

A taxpayer should ensure that the income tax return or ITR is in sync with Form 26AS. In case of any discrepancy, the income tax department may issue a tax notice to seek explanation for such discrepancies in the figures of income or TDS appearing in Form 26AS and income tax return.

The earlier Form 26AS only provided information regarding tax deducted at source and tax collected at source relating to a PAN. However, now it provides some additional information also such as details to specified financial transactions.