December 10, 2024

Form 26AS: A Guide for Indian Salaried Professionals

By Team SaveTax.AI · 2 minute read

Form 26AS is your consolidated annual tax statement that provides a comprehensive view of your tax-related transactions. This guide will help you understand, access, and effectively use Form 26AS for tax compliance.

Understanding Form 26AS

What is Form 26AS?

Annual Tax Credit Statement
Shows all tax payments and deductions linked to your PAN
Available online through the Income Tax portal
Updated in real-time when tax is deducted or paid
Essential document for income tax return filing

Information Available in Form 26AS

Part A: TDS/TCS Details

Salary TDS details
Bank interest TDS
Other income TDS
Tax collected at source (TCS)
Deductor's details and PAN
Date and amount of deduction

Part B: Tax Payments

Advance tax payments
Self-assessment tax
Regular assessment tax
Payment dates and challan numbers

Part C: High-Value Transactions

Specified financial transactions
Property purchases/sales
Fixed deposit investments
Credit card payments
Mutual fund investments

Part D: AIR Information

Annual Information Return details
High-value transactions reported by third parties
Foreign remittances

How to Access Form 26AS

Through Income Tax Portal

Visit www.incometax.gov.in
Login with your credentials
Navigate to 'e-File' menu
Select 'Income Tax Returns'
Click on 'View Form 26AS'
Choose assessment year

Through Net Banking

Login to your bank account
Look for 'View Form 26AS' under tax services
Will be redirected to TRACES website
Download or view statement

Important Uses of Form 26AS

Tax Return Filing

Verify TDS deductions
Cross-check tax payments
Ensure all income sources are reported
Reconcile with Form 16

Tax Credit Verification

Check if all TDS is correctly reflected
Verify advance tax payments
Ensure tax payments are properly credited
Track TDS from multiple sources

Income Verification

Track all reported income sources
Identify missing income declarations
Verify investment transactions
Monitor high-value transactions

Key Sections and Their Importance

Part A: TDS/TCS Details

Important Elements:

Section/Sub-section code
TAN of deductor
Amount paid/credited
TDS rate applied
Date of deduction and deposit

Part B: Tax Payments

Critical Information:

Challan identification number
BSR code
Date of payment
Amount paid
Assessment year

Part C: High-Value Transactions

Monitoring Points:

Nature of transaction
Transaction value
Transaction date
Reporting entity details

Regular Monitoring and Reconciliation

Monthly Checks

Verify salary TDS
Check new tax credits
Monitor high-value transactions
Review any discrepancies

Quarterly Reviews

Reconcile with salary slips
Check investment transactions
Verify advance tax payments
Update tax planning if needed

Common Issues and Solutions

TDS Not Reflecting

Steps to Take:

Check with deductor
Verify PAN details
Ensure return filed by deductor
Follow up for corrections

Incorrect Amount Shown

Resolution Process:

Compare with actual deduction
Contact deductor for correction
File correction statement if needed
Keep communication records

Missing Transactions

Action Items:

Review all income sources
Check bank statements
Verify investment documents
Update records accordingly

Best Practices

Regular Monitoring

Check Form 26AS monthly
Download quarterly statements
Keep track of changes
Maintain transaction records

Documentation

Save all tax payment challans
Keep TDS certificates
Maintain investment proofs
Store bank statements

Reconciliation

Match with Form 16
Compare with bank statements
Verify investment transactions
Check advance tax payments

Using Form 26AS for Tax Planning

Income Tracking

Monitor all income sources
Track TDS patterns
Plan for advance tax
Estimate annual tax liability

Investment Verification

Check reported investments
Verify TDS on investments
Monitor high-value transactions
Plan tax-saving investments

Compliance Checking

Ensure all income is reported
Verify tax credits
Check for missing declarations
Monitor reporting requirements

Important Timelines