tax deducted at source (TDS),<\/a> tax collected at source (TCS), and it could also be advance-tax and self-assessment tax. Note that all types of taxes that are paid against the Permanent Account Number (PAN)are being captured in a very comprehensive manner.<\/span><\/p>\nNeed of verification of Form 26AS<\/b><\/h2>\n
It must be ensured by the taxpayer that the income tax return is in sync with Form 26AS. If there exists any discrepancy then a tax notice may be issued by the Income Tax Department to seek an explanation for the same. Form 26AS is used as the benchmark by the Income Tax Department (IT Department) for all its analysis and verification and accordingly, notice is issued.<\/span><\/p>\nThe taxpayer needs to ensure that the entries appearing in Form 26AS are correct and if there is any mismatch then it must be corrected before filing the tax return to avoid a notice from the Department.<\/span><\/p>\nPurposes<\/b><\/h2>\n
Some transactions need to be reported by the banks or financial institutions to the IT Department directly based on the mapped PAN number, it includes deposit of cash in bank account above a threshold, details of purchasing a house, etc. Such transactions are automatically reported to the department and it appears in Form 26AS under the annual information return column if it crosses the threshold limit.<\/span><\/p>\nThe form act as a statement providing the following details:<\/span><\/p>\n\n- TDS\/TCS details of the Assessee: <\/b>The form reflects the details of the assessee about the tax deducted by any person or entity.<\/span><\/li>\n
- Details of high volume transactions<\/b>: If in case the assessee has been engaged in any transaction involving a huge sum in purchase or sale of immovable property beyond the transaction value of Rs. 30,00,000, then the details shall be maintained.<\/span><\/li>\n
- Tax details paid by the assessee in Part C:<\/b> Advance tax or self-assessment tax paid by the assessee during the relevant financial year shall be there in the form.<\/span><\/li>\n
- Income tax Refund in Part D: <\/b>If any refund is provided by the IT department, then interest will also be a part of that refund which implies that interest on income tax refund shall be reflected separately in the row that must be taken into account while filing tax return else it will lead to intimation under Section 143(1) for correction later on.<\/span><\/li>\n<\/ul>\n
What can be done if there is any mismatch in Form 26AS?<\/b><\/h2>\n
The IT department relies on Form 26AS as its authentic document, in case there is any discrepancy in the amount of TDS claimed in the tax return and the amount appearing in the Form 26AS will be considered to be genuine by the assessing officer. The officer shall provide the credit only for that amount appearing in Form 26AS. Hence, it must be verified properly by the assessee. If you find any data is not getting matched then you should take it up and get it rectified.<\/span><\/p>\n
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