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Finance
Published: June 15, 2024
Updated: June 15, 2024
Form 26AS is an annual tax statement that provides taxpayers with detailed information about their income and the corresponding tax deductions and collections. This form is crucial for accurately filing income tax returns, as it encompasses data from various sources, including salary income, business and professional receipts, interest income from bank deposits, and more.
The form includes extensive details about the taxpayer's financial activities and the associated tax deductions or collections. These details are derived from the returns filed by employers, tax deductors, tax collectors, and banking institutions on a quarterly basis to the Income Tax Department. Additionally, Form 26AS covers information on tax deductions related to the sale or purchase of immovable property and virtual digital assets.
According to Alok R Agrawal, Partner at Deloitte India, taxpayers can download Form 26AS at any time during the financial year from the income tax portal or via net banking facilities. The ideal time to retrieve this form is around June 15, as most withholding tax returns filed by May 31 would have been processed by then. Reviewing Form 26AS throughout the year helps taxpayers consider their income and corresponding tax credits for accurate advance tax computation.
For salaried individuals and businesses, it is essential to ensure that the income reported in their income tax returns matches the 'Total Amount Paid/Credit' as per Form 26AS. This alignment guarantees accurate income reporting and enables taxpayers to claim the appropriate tax credits available in the form when filing their income tax return.
Rahul Gupta, Subject Matter Expert at SN Dhawan & CO LLP, highlights the advancements in the Centralized Processing System (CPC) of the Income Tax Department. The system has automated various tasks, such as processing income tax returns, cross-referencing multiple sources like Form 26AS and Tax Audit Reports, and handling refund processing. Notices for discrepancies are now issued automatically, reflecting the increasing efficiency and speed of India's income tax processing infrastructure.
To avoid discrepancies and the subsequent issuance of notices, it is advisable for taxpayers
to thoroughly review Form 26AS and report the income mentioned therein in their income tax
returns. Claiming the tax credits available in Form 26AS is crucial for accurate tax filing.
Therefore, understanding and utilising Form 26AS is essential for all taxpayers to ensure
compliance and avoid potential issues with their tax returns.
Form 26AS serves as a vital tool for taxpayers, providing a comprehensive overview of their
income and tax deductions. By regularly reviewing and accurately reporting the details in
Form 26AS, taxpayers can ensure precise income tax returns and avoid discrepancies. As
India's tax processing system becomes more efficient, staying informed about Form 26AS is
increasingly important for smooth and compliant tax filing.
September 30, 2024 - Second Issue
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