Check your Consolidated Tax Statement before filing your tax returns this year

It's that time of the year again. July 31 is just around the corner and you're expected to file your income tax returns before the upcoming deadline.

This time, however, whether you file your tax returns on your own or get it done through a Chartered Accountant, be sure to check your Form 26AS before filing your taxes.

What is Form 26AS?

The Form 26AS is a consolidated tax statement issued by Income Tax Department which shows the tax payments received by the government and credited to your account which is linked with your PAN card. All the tax payments made by you or on your behalf, either by your employer or any other person, are reflected in your 26AS.

What does it consist of?

The tax credit statement 26AS contains the following info:

Part A: Details of Tax Deducted at Source (TDS)

Part A1: Details of TDS for 15G/15H

Part A2: Details of TDS on sale of Immovable Property u/s 194IA (For Seller of Property)

Part B: Details of Tax Collected at Source (TCS)

Part C: Details of Tax Paid like Advance Tax, Self Assessment Tax or Regular Assessment

Part D: Details of Paid Refunds

Part E: Details of AIR Transactions

Part F: Details of Tax Deducted at Source on Sale of Immovable Property u/s 194IA (For Buyer of Property)

Part G: TDS Defaults (Processing of Statements)

Why should I check my Form 26AS

It is a very useful tool to confirm whether the

i. Tax deducted by the deductor has been duly deposited to the government.

ii. Bank has properly furnished the details of the tax deposited on your account.

iii. The deductor/collector has correctly filed the TDS/TCS statement giving details of the tax deducted/collected on your behalf;

For example, if you are a salaried person and your employer has paid Rs 2,00,000 tax by way of TDS on your salary, and you have also paid self-assessment tax say Rs 20,000 on your fixed deposit interest, then the same should be duly reflected in your 26AS.

Can there be a variation in the tax credit?

Yes, there's a possibility that a variation can creep in. It can happen due to these reasons:

i. Your employer or deductor/collector has not filed his TDS/TCS statement

ii. Your PAN is not provided to the deductor/collector; or incorrect PAN number was furnished

iii. There was an error by the deductor/collector in quoting your PAN while filing TDS/TCS return

iv. Your PAN was not quoted at all.

v. Challan details wrongly quoted either by deductor or wrongly uploaded by the bank.

What can I do in the case of a variation?

You need to contact your employer or bank, or any person being the deductor, who has deducted and deposited the tax incorrectly on your account. They will need to “revise” their TDS return.

You will need to wait till they revise it and the change reflects in your Form 26AS. Failing this, you may be served a tax demand notice from the income tax department.

How can I view the Form 26AS online?

Option 1: By registering yourself at the IT department’s website. Registration is free and instant.

Option 2: Through the net banking facility provided by your bank.

Option 3: You can also register through NSDL website.

Many taxpayers are receiving income tax notices asking them to pay tax even after they have already paid it. So, it's imperative to check your 26AS to set your tax figures right before it's too late.

The author is a Chartered Accountant and the Chief Gardener & Founder Director of Money Plant Consulting, a leading Tax & Investment Planning Advisory Service Provider. He also runs a personal finance blog called “Mango Investor” aka AAM Niveshak at www.mangoinvestor.com. Readers are invited to send their feedback to rishabhparakh@moneyplantconsulting.net.