How to Read FORM-26AS and extract information from it

Form 26AS simply provides the financial transactions details related to Assessee. These transactions can be done by Assessee or are done by third party with Assessee. Form 26AS reflects these transactions only when some authority/person reports details regarding these transactions by filing Various Returns prescribed for various type of Transactions.

Form 26AS mostly use for Checking and reconciling the amount of TDS deducted from the income of the Assessee. Information of amount of TDS Deducted and Gross Amount payable or paid to Assessee. This Amount of TDS and Gross Amount can be seen in the table of PART-A of Form 26AS. This Table of PART-A of Form 26AS also reflects the details of the Deductor such as Name and TAN of Deductor and the Section Under which TDS has been deducted.

What Other Purposes, does Form 26AS serves?

Details of Tax Collected at Source (TCS)

Part B of Form 26AS reflects the amount of TCS deducted on account of Assessee along with Section under which TCS has been Deducted (Needless to mention that Gross amount and TCS Amount also Reflects).

Details of Tax Paid (Other than TDS or TCS)

Part C of Form 26AS reflects the Amount paid in cash to settle tax liability. Also the advance tax paid by Assessee over the time period in a financial year reflects in this Part of Form 26AS.

Details of Paid Refund

Part D of Form 26AS reflects the amount which the Assessee has received as refund from income tax department. Along with the amount bifurcation of Refund amount and interest amount included in refund.

Details of SFT Transactions

SFT transactions are reported by various entities such as Banks, Mutual Funds, Companies etc. These transactions are reported under Statement of Financial Transactions (SFT). Part E of Form 26AS reflects these transactions. These transactions are reported by entities when the amount of transaction exceeds the threshold limit prescribed by the Income Tax Department.

Details of Tax Deducted at Source on Sale of Immovable Property

Part F of Form 26AS reflects the details of TDS deducted on sale of immovable property. This part shows the details of property sold, amount of sale consideration, TDS deducted, and the TAN of the deductor.

Details of TDS on Rent

Part G of Form 26AS reflects the details of TDS deducted on rent payments. This part shows the details of rent paid, TDS deducted, and the TAN of the deductor.

Details of GST Turnover

Part H of Form 26AS reflects the information about the Turnover of GST. These details are auto populated in Form 26AS after filing the GSTR returns on the GST Portal by Assessee.

How to Use the Information of Form 26AS?

Form 26AS information regarding the financial transactions of Assessee can be used in following ways:

To Reconcile GST with Income Tax Return

As discussed earlier in this article that, Part H of Form 26AS reflects the details about the Turnover of Assessee under GST. So to reconcile the turnover details in books now Assessee do not have to open GST portal. Assessee can just check the turnover details from the Form 26AS.

Reconcile TDS details with the amount of Salary Received

Salaried Assessee's faces problems while reconciling their salary amount received with the Actual amount of Salary in the agreement with the company. To reconcile that, Form 26AS provides all the details such as Gross amount and the amount of TDS deducted on that. Using these details, not only Salaries Assessee's but any other Assessee's can reconcile their amount received with actual amount decided earlier.

Proof of Tax Payment

After paying tax, the payment reflects in the Part C of the Form 26AS. Which will then be produced before the income tax department as sometimes even after paying taxes, the outstanding demand letter can come.

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