How to ensure that you do not get an Income Tax notice?
If you claim an excess income tax credit in your income tax return (ITR), it could trigger a notice from the income tax department. You can avoid it by ensuring your ITR is reconciled with Form 26AS.
The last date to file your Income Tax Return (ITR) for FY23 (Assessment Year 2023-24) is July 31. Those filing ITRs after the due date will have to pay interest and a penalty, as applicable.
Navigating the tax filing process can feel tiring or cumbersome. But don't worry! There's a master key, rather a master document, that can help you complete this process - Form 26AS/AIS.
This document is like a tax passbook that records all your tax-related transactions, making it an indispensable tool for filing your Income Tax Return.
What is Form 26AS/AIS?
Form 26AS/AIS is a consolidated statement that records all tax-related information against your Permanent Account Number (PAN).
It's like a financial diary that keeps track of your tax credits, tax deducted at source (TDS), tax collected at source (TCS), and other tax payments. It also includes information regarding high-value transactions, tax refunds and pending tax demands.
Why is Form 26AS/AIS important for ITR Filing?
Form 26AS/AIS plays a pivotal role in the ITR filing process for several reasons:
- It provides a consolidated record of all your tax-related transactions, making it easier to file your ITR accurately.
- It helps in verifying the TDS details mentioned in your ITR with the actual TDS deducted.
- It aids in identifying any discrepancies or mismatches in your tax details, allowing you to rectify them before filing your ITR.
- Salaried taxpayers must ensure that the income declared in Form 26AS matches the amount reported in Form 16, the certificate given by employers for TDS on salary.
Remember this
Most of us tend to look at Form 26AS only at the time of filing the ITR. Personal finance experts recommend that taxpayers regularly review the details mentioned in it.
Central to the review of the information contained in Form 26AS is recordkeeping.
Maintain all proof related to investments, deductions, big-ticket purchases and related bills.
How to Handle Mismatches in Form 26AS
As far as the Income Tax department is concerned, only Form 26AS will be accepted as an authentic document. In case of a discrepancy between the amount of TDS claimed in the ITR and the amount shown on Form 26AS, the Assessing Officer will consider only the amount shown on Form 26AS.
That is why you should always double-check Form 26AS before filing your ITR.
Discrepancies may occur because you failed to pay tax on some capital gains or because your employer deducted but did not deposit tax.
In any case, you must act quickly to correct the situation.
Downloading and verifying Form 26AS should be done well in advance of filing returns so that you have enough time to discuss any discrepancies with your employers or relevant parties.
Finding your Form 26AS
The income tax website lists the following steps for you to access your Form 26AS
- Log on to https://www.incometax.gov.in/iec/foportal/
- Go to the 'My Account' menu, and click 'View Form 26AS (Tax Credit)' link.
- Read the disclaimer, click 'Confirm', and the user will be redirected to TDS-CPC Portal.
- In the TDS-CPC Portal, Agree the acceptance of usage. Click 'Proceed'.
- Click ‘View Tax Credit (Form 26AS)’
- Select the ‘Assessment Year’ and ‘View type’ (HTML, Text or PDF)
- Click ‘View / Download’
Summing up
Form 26AS/AIS is not just a document; it's your key to a smooth and accurate ITR filing process.
It is the only document that the Income Tax department will refer to or form the basis of computing your tax liability.
FAQ
What’s new in the revised Form 26AS/AIS?
The revised Form 26AS/AIS now includes additional information such as tax demands, specified financial transactions, payment of taxes, pending and completed proceedings, and other relevant details.
How can Form 26AS/AIS help in the ITR filing process?
Form 26AS/AIS is a comprehensive record of all your tax-related transactions. It helps in verifying the accuracy of the tax details mentioned in your ITR, identifying any discrepancies, and ensuring that your ITR filing is accurate and error-free.
How can I access my Form 26AS/AIS?
You can access your Form 26AS/AIS from the Income Tax Department's e-filing portal using your PAN.