How Form 26AS Helps You Claim Tax Credits in ITR

Keeping all your tax-related documents handy while filing your Income Tax Return (ITR) makes the process smoother and reduces the risks of errors or notices. One such crucial document is Form 26AS, often referred to as the Form 26AS income tax statement. Issued by the Income Tax (IT) Department of India, it serves as a record of annual tax credits for taxpayers. This article explains what Form 26AS is, what information it contains, why it is important for claiming tax credits, and how to download it. 

What is Form 26AS?

Form 26AS acts as a tax credit statement that is linked to your Permanent Account Number (PAN). It provides a consolidated record of Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) during a financial year. 

While Form 26AS is not mandatory for filing an ITR, referring to it helps avoid mismatches, notices, and potential refund delays, as the IT Department cross-verifies your ITR with Form 26AS and other available data. 

Decoding the parts of Form 26AS

Earlier, the Form 26AS income tax statement also included high-value transactions, among other crucial information. However, from Assessment Year (AY) 2023-24 onwards, it has been simplified to include only TDS- and TCS-related details. The statement is now divided into the following parts:  

• Part A: Reflects TDS deducted on income such as salary, interest, dividends, professional fees, etc. 
• Part A1: Lists transactions where Form 15G or Form 15H was submitted and, as a result, no TDS was deducted
• Part A2: Shows TDS deducted on the sale of immovable property under Section 194-IA
• Part A3: Displays TDS deducted on rent paid by individuals or Hindu Undivided Families (HUFs) (not liable to tax audit) under Section 194-IB
• Part A4: Covers TDS on certain payments by individuals or HUFs under Section 194-M
• Part B: Contains details of TCS collected by sellers from buyers

How to log in and download Form 26AS

Here’s how you can download Form 26AS:

Step 1: Visit the Income Tax e-filing portal (https://www.incometax.gov.in/iec/foportal/) and log in using your PAN and password. 

Step 2: Go to ‘e-File’ > ‘Income Tax Returns’ > ‘View Form 26AS’.

Step 3: Read the disclaimer and click on ‘Confirm’ to be redirected to the TRACES TDS-CPC portal.

Step 4: Agree to the terms and click on ‘Proceed’.

Step 5: Click on ‘View Tax Credit (Form 26AS)’.

Step 6: Select the ‘Assessment Year’ and ‘View type’ (HTML or Text).

Step 7: Click on ‘View/Download’. 

Form 26AS vs AIS: which one should you trust?

When discussing tax documents, Form 26AS and Annual Information Statement (AIS) are often mentioned together. However, they serve different purposes. 

Form 26AS primarily reflects tax credits that have actually been deposited against your PAN. AIS, on the other hand, covers a much broader range of financial information, including interest income, high-value transactions, securities transactions, and specified financial transactions. 

Another key difference is that AIS also allows taxpayers to provide feedback on reported transactions, helping them correct errors, omissions, or duplications. 

Since Form 26AS displays actual tax credits and AIS captures a broader financial picture, it is advisable to refer to both documents when filing your ITR to ensure complete and accurate reporting.

Verifying m.Stock dividends and interest in Form 26AS

m.Stock offers a user-friendly platform to manage investments, with dedicated sections for reports and statements. You can download Form 26AS and reconcile it with the statements available on the platform. 

Carefully verify the deductor’s name, income amount, and tax deducted. Ensure the entries match the statements on m.Stock. 

You must note that income will appear in Form 26AS only if TDS has been deducted and deposited with the government. If you find any discrepancies, contact your deductor for correction. 

Conclusion

Although not mandatory, the Form 26AS income tax statement is an important document for accurately claiming tax credits in your ITR. Reconciling your income, TDS, and tax payments using Form 26AS along with AIS helps minimise errors, avoid tax notices, and ensure faster processing of refunds.