Safeguarding tax credit of every tax


(Last Updated On: August 8, 2019)
How can I verify whether TDS deducted on account of payment made to me by another party has been deposited to Govt. treasury or not?
  • How can I check whether advance tax paid has been booked against my PAN no. or against another PAN no. by bank erroneously?
  • How can I check the total tax amount refunded by Govt. in the relevant F.Y.?

Many Questions: One Answer; 26AS

26AS is a statement which shows income tax credit for a particular PAN. It shows the total amount of TDS/ TCS/ Advance tax/ Self assessment tax that can be utilized against the payment of final tax liability of a person.

Currently Form 26AS is generated from TRACES (TDS Reconciliation Analysis and Correction Enabling System.) annually , for a financial year. FORM 26AS is divided into 5 parts:

  1. TDS – PART A AND PART A1 OF FORM 26AS
  2. TCS – PART B OF FORM 26AS
  3. DETAILS OF TAX PAID (OTHER THAN TDS & TCS ) – PART C OF FORM 26AS
  4. DETAILS OF REFUND – PART D OF THE FORM 26AS
  5. DETAILS OF AIR TRANSACTIONS(ANNUAL INFORMATION REPORT) – PART E OF FORM 26AS

For our better understanding lets look at the example which shows total amount of tax credit as displayed in your FORM 26AS.

Example: Following transactions took place in a particular F.Y. related to “B”:

  • A made a monthly payment of Rs. 50,000 to B on account of commission and deducted 10% TDS thereof.
  • B deposited Rs. 45,000 as advance tax in govt. treasury.
  • B also deposited Rs. 50,000 as self assessment tax in govt. treasury.

Hence total tax credit available for B is as follows:

TDS deducted by A on commission : 50,000*10%*12 : 60,000

Advance tax deposited by B : 45,000

Self Assessment tax deposited by B : 50,000

Total credit available for B : 1,55,000

This tax credit shall be mentioned in 26AS statement and Rs. 1,55,000 can be adjusted against the final tax liability at the time of filing of income tax return.

How to view Form 26AS?

For viewing 26AS, you need to login on incometaxindiaefiling.gov.in website through the login-ID and password along with date of birth/ date of incorporation. By clicking on “View 26AS credit”, system shall direct you to CPC-TDS site wherein you can download the 26AS certificate.

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Screen #1: Click on View Form 26AS

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Screen #2: Income tax site shall re-direct to TDS-CPC website

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Screen #3: Click on View Tax credit (Form 26AS)

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Screen #4: Choose the relevant A.Y. and download the 26AS form

Note: Password to open the 26AS is date of birth/ date of incorporation; if your date of birth is 24-Aug-1995, enter the password as 24081995 to open the certificate.

Does 26AS and Form 16 both fulfill the same requirement or not?

26AS and Form 16 both display the TDS that has been deducted by a party while making a payment to another party. While Form 16 is given by deductor (party making payment) to deductee (party receiving payment) after filing TDS return, 26AS is downloaded on deductee’s end. TDS deducted by deductor as per Form 16/ Form 16A should match with the TDS deducted shown in 26AS statement.

In case of difference between Form 16 & 26AS, what should be done?

If tax deducted and deposited as per Form 16/ 16A differs from 26AS, you should insist the opposite party to revise the TDS return.It is pertinent to note that deptt. shall always calculate the tax credit as per data shown in Form 26AS. In case some discrepancy has been found out in the 26AS (e.g. any payment shown in 26AS which is not actually done, wrong amount shown in 26AS etc.), it can be rectified by contacting Income Tax Department Portal.

What is booking status in part A of form 26AS ?

There are various booking status available in the form which displays various status.

  • F – Final (When payment details by deductor match with the tds/tcs statement as filed by deductor )
  • O – Overbooked (When payment details match with the TDS/TCS statement, but the amount is over claimed in the statement )
  • U – Unmatched (When payment details mentioned in statement by deductor cannot be found in OTLAS/Bank or can not be matched. )
  • P – Provisionally booked (Only in case of government deductors, who make book entry for TDS/TCS, of which details are updated in G-otlas, if does not match with TDS/TCS statement )

What other important details shall be covered in 26AS?

Details of advance tax and self assessment tax so paid (Challan no., date and amount of challans), Refund (if any) given by the govt. as well as interest on refund & details related to AIR transaction are also listed in 26AS.

Thus, 26AS is always a helping hand and ensures correct tax credit so that you can file your return more smoothly. It also ensures that TDS so deducted is deposited to govt. and there is no evasion of tax.

So don’t be afraid of losing tax credit; Earn freely and pay the tax; 26AS shall make sure that your don’t lose your tax credit.

CA Abhishek Soni

Abhishek Soni is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Tax2Win.in. Tax2win is amongst the top 25 emerging startups of Asia and authorized ERI by the Income Tax Department. In the past, he worked in EY and comes with wide industry experience from telecom, retail to manufacturing to entertainment where he has handled various national and international assignments.