Why it is important to check Form 26AS
before filing Income Tax Return
There is a great need and
importance of thorough checking of Form 26AS before filing Income Tax Return,
as it is an Annual tax statement which provide the details of tax paid, tax
deducted or collected at source as the case may be of the respected assesse.
Assesse has to mandatorily disclose the corresponding income in his ITR which
is reflecting in the Form 26AS against which TDS/TCS has been made. It acts as a
statement which provides various details like as follows;
1). TDS/TCS Details of the Assesse:
Form 26AS shows the details of tax deducted by any person or entity i.e.
deductor in Part A under various sections like 194A, 194C etc. or tax collected
at source u/s 206C series in Part B.
2). Details of high volume
transactions in Part E like if any assesse has been engaged in any transaction
which involved a huge amount like purchase or sale of immovable property above
the transaction value of 30,00,000 INR.
3). Details of Tax paid by the
assesse in Part C: Advance tax or self-assessment tax paid by the assesse
during the relevant financial year. Also if any tax paid by the assesse for
reasons other mentioned above like tax on regular assessment u/s 143 or in pursuance
of demand notice issued u/s 156.
4). Income tax Refund in Part D: If
any amount which is refundable by the department is reflected in the Form 26AS,
it is important to note that if any refund which is provided by the department,
then interest will be also be a part of that refund i.e. interest on income tax
refund which is separately reflected in the row which should be taken into
account while filing ITR otherwise it will lead to intimation u/s 143(1) for
correction later on, as such interest is taxable under the head “IFOS”.
Form 26AS can also be termed as
annual tax credit statement which reflects how much tax credit is accumulated
during the financial year which can be used to pay taxes at the time of filing
ITR.
Apart from the above, one should
always check whether the income reflecting in the form is correct and best to
the knowledge of assesse, as it can create problems latter on if assesse fails
to show the income which is reflecting in the Form 26AS and denies the same
that income does not belong to him, sometimes it happen that TDS has been made
wrongly due to wrong furnishing of PAN details, therefore one should look after
that Form 26AS reflects true and correct info about income and tax details.
Conclusion: At last, would like to
conclude that Form 26AS is the most important statement while filing an ITR,
one should always match the details with it for avoiding any notices and
intimations from the department.
With best regards
CA.
M. No. 7694905887
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