ITR filing: Around 5.83 crore income tax returns were filed last year till July 31, which was the last day for filing returns for assessment year 2022-23.
Acting as a consolidated tax credit system, Form 26AS plays an important role in all tax payments made by your employer or clients on your behalf.
Form 26AS is something you should be aware of if you are an individual or a business depositor Tax Returns, Form 26AS, which acts as an integrated tax credit system, is required in all tax payments made by your company or customers on your behalf. It contains important information about Tax Deduction at Source (TDS) and Tax Collection at Source (TCS) from various income sources like banks and employers.
What is the importance of Form 26AS and why should you focus on it before filing your Income Tax Return?
Let us analyze it and understand its importance:
Form 26AS is an annual statement provided by the Income Tax Department to the taxpayers. This is a summary of your tax information, including how much tax you paid and what you deducted. Consider it a complete record of all taxes paid against your Permanent Account Number (PAN).
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One main reason To check your Form 26AS is to ensure that it aligns with your Income Tax Return (ITR). If there is any difference in income or TDS figures between Form 26AS and your tax return, the Income Tax Department may send you a tax notice seeking clarification. The department relies on Form 26AS to analyze and verify your tax information, so any discrepancy can lead to unwanted attention.
To avoid such notices, it is important for you to ensure that the entries in your Form 26AS are accurate and belong to you. If you notice any mistakes or mismatches, you should get them corrected before filing your ITR.
Apart from balancing your tax statement, Form 26AS serves another essential purpose. Certain transactions, such as depositing cash above a specified limit or buying a house, are required to be reported by banks and financial institutions directly to the Income Tax Department. These transactions appear in your Form 26AS under the Annual Information Return (AIR) section, but only if they exceed the specified limit.
To download Form 26AS from the TRACES website, follow these simple steps:
Start by visiting the e-filing website.
Enter your User ID, which can be either your PAN or your Aadhaar number.
Note: If the User ID submitted by you is incorrect then an error message will be displayed. Enter a valid User ID.
enter your password.
After you log in, the main screen will appear. Go to the ‘e-File’ section, select ‘Income Tax Return’, and then select ‘View Form 26AS’ from the menu that appears.
