Know Everything About Income Tax Form 26AS

It is tax season, and you’re ready to file your return. You have collected all your documents, but there is one crucial piece of paperwork that holds everything together: Form 26AS. This form might seem intimidating, but understanding it is key to ensuring your tax filing goes smoothly.

Form 26AS is a consolidated statement issued by the Income Tax Department of India. It provides an overview of your tax-related transactions for a financial year, including details on tax deductions, exemptions, and high-value transactions. This form is crucial for all taxpayers as it helps in ensuring accurate tax filing and compliance.

For the current financial year, the Income Tax authorities have introduced a new structure for Form 26AS. The revised form is divided into the following parts:

Part A: TDS and TCS Details

• TDS on Form 15G/15H: This section includes tax deducted at source (TDS) for transactions where Form 15G/15H was submitted.
• TDS on Sale of Immovable Property: Information about TDS deducted by sellers on the sale of immovable property.

Part B: Tax Collected at Source (TCS)

• Details of tax collected at source by sellers from buyers, covering various transactions.

Part C: Tax Paid (Other than TDS or TCS)

• Details on any tax paid in advance or as self-assessment tax.

Part D: Tax Refunds

• Information about any tax refunds received during the financial year.

Part E: High-Value Transactions

• This section includes details of significant transactions such as mutual fund purchases, property purchases, and bonds.

Part F: TDS on Sale of Immovable Property (Buyers)

• Information on TDS related to the purchase of immovable property by buyers.

Part G: TDS Defaults

• Details of any defaults or discrepancies in TDS compliance.

The new Form 26AS requires reporting high-value transactions to ensure transparency and compliance. These include:

• Education fee payments exceeding ₹1 lakh p.a
• Electricity bill payment exceeding ₹1 lakh p.a
• Domestic/International Business Class Air travel
• Hotel bills exceeding ₹20,000
• Jewellery, white goods, painting purchases worth more than ₹1 lakh
• Current Account deposits/credits exceeding ₹50 lakh
• Savings Account deposits/credits exceeding ₹25 lakh
• Property tax exceeding ₹20,000 p.a
• Life Insurance premium above ₹50,000
• Health Insurance premiums above ₹20,000
• Transaction details of Demat Accounts and Bank lockers

Understanding the difference between tax avoidance and tax evasion is essential:

• Tax Avoidance: This involves using legal methods to reduce tax liability through permissible deductions and exemptions.
• Tax Evasion: This refers to illegal practices aimed at concealing income or inflating expenses to avoid paying taxes. It involves deliberate misrepresentation or omission of information.

Paying taxes on time is crucial to avoid penalties and legal issues. Here’s what you need to know:

• Penalties for Late Payment:

• Before December 31: Penalties range from ₹1,000 to ₹5,000.
• After December 31: Penalties can go up to ₹10,000.

• Avoiding Penalties: Regularly verify all income sources and transactions to ensure accurate tax reporting and avoid potential tax evasion.

Timely payment of taxes supports the efficient functioning of the government and contributes to national development. Proper financial planning and punctual tax payments help avoid unnecessary complications and maintain financial health.

You can save tax with Tax Saving FD. Calculate your returns with the FD Calculator.

Wondering how to file your ITR online? Here’s how!

* The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. You are recommended to obtain specific professional advice before you take any/refrain from any action. Tax benefits are subject to changes in tax laws. Please contact your tax consultant for an exact calculation of your tax liabilities.