Variety 26AS: An Profits Tax Filing Document
This means of Variety 26AS:
The Type 26AS (Annual TAX STATEMENT) is a consolidated tax credit rating statement issued by the Money Tax Department to the tax payer. Entries in the Tax Credit Statement (Type 26AS) are created when a legitimate PAN amount has been reported in quarterly TDS statements. It exhibits how considerably of your tax has been acquired by the IT Office and is consolidated from multiple resources like your salary / lease /expert / interest profits and so forth. This sort is made up of the yearly tax statement beneath Segment 203AA and next provision to Area 206C (5) of the Earnings Tax Act, 1961 and Rule 31AB of Money Tax Regulations, 1962. TDS certificates i.e. variety 16 and 16A will have to be cross checked with variety 26AS.
Form 16 is issued by an employer whereas Kind 16A is issued by any other TDS deductors not remaining an employer viz. a bank deducting TDS on Fascination, a customer deducting TDS on Expert charges, a tenant deducting TDS on Rent.
Great importance:
Type 26AS is important for claiming the credit rating of TDS/TCS deducted/collected by the deductor/collector which has been deposited to the account of the government. The deductor/collector should precisely file the TDS/TCS statement supplying facts of the tax deducted/collected on your behalf.
The form is essentially divided into numerous pieces as follows:
Aspect A – Information of Tax Deducted at Resource
- It is made up of in depth listing of tax deductors and complete volume deducted/compensated or credited to you with tax deducted and tax deposited thereon. TDS mirrored in Kind 16 and Kind 16A need to be matched with this aspect.
Portion A1 – Facts of Tax Deducted at Resource for 15G / 15H
- This section will show transaction in those people financial establishments these as banks where by the person has submitted Variety 15G / 15H. TDS in these situations would be zero. It enables you to keep a keep track of of all the fascination attain which has not been taxed.
Aspect A2 – Details of Tax Deducted at Resource on Sale of Immovable Home u/s 194IA (For Vendor of House)
- Listed here u/s 194IA a buyer of Immovable home has to deduct TDS and remit the TDS to government by way of challan Sort 26QB presented the consideration for transfer of an immovable house is not much less than Rs. 50 lakhs. Amount will reflect below this section if you are a vendor of the assets.
Section B – Facts of Tax Collected at Resource (TCS)
- Each individual, staying a seller,shall obtain tax at supply(TCS) from the consumer of goods specified in segment 206C(1). TCS is collected on sale of Liquor, timber, scrap and many others. at the time of debiting of the total payable to customer or at the time of receipt of payment, whichever is before.
Section C – Particulars of Tax Paid out (other than TDS or TCS)
- All progress tax payments, self-assessment tax payments are mirrored less than this portion.
Part D – Particulars of Paid out Refund
- If you have bought any tax refunds in that assessment Year it would be shown below this section.
Section E – Information of AIR Transaction
- If you make some substantial value transactions, such as investment decision in home and mutual resources, then these transactions are instantly described to the income tax department by banking institutions and other authorities as a result of Once-a-year Details Return (AIR)
Part F – Specifics of Tax Deducted at Source on Sale of Immovable Residence u/s 194IA (For Purchaser of Assets)
- As mentioned previously mentioned in Part A2. Amounts will reflect in this column if you are a purchaser of the residence.
Case in point: Mr. X a salaried specific doing work in A Ltd and drawing a income of Rs.40,000 per month which is Rs.4,80,000/- for every annum through the financial 12 months 2013-14 I.e Evaluation Year 2014-15. He has produced declarations to A Ltd for deductions for LIC quality of Rs.10,000, Provident Fund Rs.25,000, Mediclaim Rs.3,000. Housing Mortgage Fascination Rs.30,000 and principal compensation of Rs. 12,000/-. Consequently his taxable Income is Rs.4,00,000/- just after all the earlier mentioned deductions. Essential Exemption restrict for unique is Rs.2,50,000/- on which no TDS is relevant. On the balance total of Rs.1,50,000, tax is levied @ 10% which amounts to 15,000. A Ltd will therefore deduct an quantity of Rs. 1,250 for every month from Mr. X income from the starting of first thirty day period of the financial yr. Any shortfall in TDS is generally deducted in past month of the financial year. A Ltd will file quarterly TDS returns by depositing the TDS with government on recommended due dates. A ltd will problem Sort 16 to Mr X which is a certification of wage drawn and TDS deducted therefrom by 31st Might. Mr. X really should to start with determine the TDS deducted from his regular wage slips with TDS reflected in Type 16 if it matches with the sum he should further test whether or not the exact same sum matches with TDS mirrored in Type 26AS.
Any person need to duly test his Type 26AS right before filing his cash flow tax returns as ignorance of the very same can simply just lead to tax credit rating mismatches resulting to notices from the IT Departments, IT Refund withheld or even penalties. Just one have to recall the indicating ‘Precaution is often far better than cure’ and also ‘stich in time saves nine’ both similarly pertinent for the previously mentioned discussed matter.