Why you should check Income tax Form 26AS before tax return filing

Before filing your IT return, you need to check various documents to know details of your income and amount of tax deducted at source (TDS). To cross check these details of tax deducted, you need to first check Form 26AS online.

26AS is an online consolidated statement available at income tax website with details of tax deducted at source (TDS).

In addition to TDS details, it also let you know tax collected, paid and refunded to you for a particular financial year.

Form 26AS is the most important document that assessee should verify before preparing IT return.

You can easily check whether the payer has actually deposited the TDS amount against your PAN with the government or not.

Structure of 26AS

Form 26AS has 7 parts i.e. part A, B, C, D, E, F and G.

Part A of Form 26AS contains details of tax deducted, deductor’s name and TAN, type of income from which tax has been deducted.

PART A1 will have details of interest paid on which TDS has not been deducted for submission of Form 15G/15H to the bank.

Tax deducted at source on sale of immovable property will reflect in Part A2.

Tax deducted from your income during a particular financial year must reflect in form 26AS. If it’s not reflecting, then the deductor might not have filed TDS return which is required to be filed every quarter for the amount of tax deducted against the pan number.

Tax collected at source is in Part B. If you have purchases a car or jewellery during the year the tax collected on such purchase will appear here. You can take tax credit of this amount in your IT return.

Part C contains all taxes paid such as tax paid on self assessment, regular assessment and in advance.

Any tax refund received by you during the financial year along with interest if any can be found in Part D of the form 26AS.

All high value transactions like depositing large sum of money into your saving bank account, purchase of bonds, purchase of property etc will reflect in part E of form 26AS based on the AIR filed by bank or financial institutions.

Part F will have TDS details where property has been bought by you for a consideration exceeding Rs. 50 lakhs.

Finally part G will have details if you are a defaulter in payment of TDS, or filing of TDS return.

Information in 26AS is generally updated on a quarterly basis.

TDS Mismatch in Form 26AS

Any mismatch between 26AS and details given in IT return may lead to further enquiry from the department.

In case of mismatch between the TDS claimed in IT return and the amount reflecting in form 26AS, tax officer will consider the amount that is appearing in the Form 26AS. Therefore, it’s always suggested to view it before filing your IT return.

Mismatch can happen when deductor has not paid the amount of TDS to the government, or after making payment, he has not filed TDS return as required to be filed quarterly or while filing quarterly TDS return, wrong PAN has been mentioned.

If you are finding any discrepancies in form 26AS, then contact the deductor to rectify such mistake before filing your IT return.

If you have filed your IT return based on certain excess tax credit in form 26AS, which is later on rectified by the deductor as it should not have come to you, then IT department may issue a demand notice to recover the tax credit.

In such type of cases, you are suggested to contact the deductor to rectify such mistakes before filing return. If you cannot wait due to time constraint, then file your IT return by not taking the tax credit.

You are required to check status of each entry in form 26AS. If the status is F, then the entry is in final status. If it’s U, then the deductor has done some mistake.

To download or view form 26AS, you need to log in to your tax filing account on IT department’s e-filing website with your PAN and password. If you forgot your password, then you can directly login from net banking facility of any authorised bank.

After log in, you need to click on “view form 26AS (tax credit)” tab under “My Account” tabs. You will be taken TDS-CPC website to view the form.

is a fellow member of the Institute of Chartered Accountants of India. He lives in Bhubaneswar, India. He writes about personal finance, income tax, goods and services tax (GST), company law and other topics on finance. Follow him on facebook or instagram or twitter.