During the whirlwind season of Income Tax Return Filings, you come across two income tax forms most frequently. These are Income Tax Form 16 and TRACES 26AS or Form 26AS.

Where Income Tax Form 16 specifies details of your salary income and tax deducted and deposited by your employer.  TRACES 26AS is an annual consolidated tax summary that you need to verify before ITR Filing.

TRACES 26AS is an important document for tax filing. It can be accessed on the TRACES website, a government portal, by all taxpayers using their Permanent Account Number (PAN). Whatever taxes you have paid, or have been deducted at source, the IT department already has these details in their database.

TRACES 26AS gives an overall view of tax deducted for your PAN at various sources, by your employer, bank etc. It also provides the details of your income (on which taxes have been deducted). It makes sense to ensure that the information in income tax returns or ITR forms is in sync with TRACES 26AS. That the entries appearing in your 26AS belong to you. As any mismatch in data would invite a notice from the Income Tax Department.

Additionally, this Form also contains details of your deductors with their names and Tax Deduction Account Number (TAN Number).

Contents of TRACES 26AS

Like the 5 heads of Income Tax, 26AS has 5 parts, these are:

  1. Part A: It contains details of Tax Deducted at Source (TDS) by the Deductor. It may be your employer, banker etc. Is divided into two sections. (a) Part A1 has details of TDS for Form 15G 15H. (b) Part A2 has details of TDS on sale of Immovable Property u/s194(IA) (For the Seller of Property),
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traces 26as: Part A: LegalRaasta

traces 26as

traces 26as: Part A1: LegalRaasta

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traces 26as: Part A2: LegalRaasta

2. Part B has information of Tax Collected at Source,

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traces 26as: Part B: LegalRaasta

3. Then Part C gives particulars about any other Tax Paid (than TDS or TCS),

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traces 26as: Part C: LegalRaasta

4. Part D specifies Paid Refund,

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traces 26as: Part D: LegalRaasta

5. Whereas Part E details the Annual Information Return (AIR),

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traces 26as: Part E: LegalRaasta

Note that the total amount reported by the AIR Filer is displayed in this transaction. It would not reflect the respective share of each individual separately.  It also mentions the due date for filing AIR returns is 31 Augst falling subsequent to the financial year in which it is recorded.

6. Part F has of Tax Deducted on sale of immovable property u/s194IA (For the Buyer of property),

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traces 26as: Part F: LegalRaasta

7. Part G mentions any defaults on TDS.

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traces 26as: Part G: LegalRaasta

How to check TRACES 26AS?

You can view your 26AS by logging into net banking of your bank account. TRACES supports almost all major and nationalized banks. Because your PAN is linked to your bank account, you can view your statement. This online facility is provided for free, by your bank.

Another way to view and download TRACES 26AS will be through your income tax site registration. It is explained elaborately in the below step-wise procedure, to get yourself registered and download 26as.

How to download

Step I:

E-filing website

Step II: traces 26as: Download Step I: LegalRaasta

Enter details as required, for logging in. Essential details required are user ID (PAN number), Password and Date of Birth/Incorporation. The format for the date is DD/MM/YYYY. Now enter the captcha code and

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traces 26as: Download Step II: LegalRaasta

  Step III

On the below screen, go to ‘My Account’. Click on “View Form 26AS” in the drop-down list.

View Form 26AS

Step IV traces 26as: Download Step III: LegalRaasta

Clicking on “Confirm” will redirect you to the TRACES website.

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traces 26as: Download Step IV: LegalRaasta

  Step V

Below is how TRACES website looks like. Select the box on the screen and click on “Proceed”.

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traces 26as: Download Step V: LegalRaasta

Step VI

Click “View Tax Credit (Form 26AS)” to view your TRACES 26AS.

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traces 26as: Download Step VI: LegalRaasta

Step VII

Choose Assessment Year (FY 18-19 has an AY of 19-20 and so on) and the format in which you want to view and download 26AS. Once, you have selected, enter the “Verification Code (Captcha)” and click on “View/Download”.

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traces 26as: Download Step 7: LegalRaasta

Step VIII

This document is password protected, so you would need to enter the password. The password is your DOB in DD/MM/YYYY format.

Things to Verify in TDS Certificate with TRACES 26AS

You must cross-check if the figures reflected in your TDS certificate given by your source (employer, bank) is also reflected in your 26AS. Verify if the Name, PAN, TAN of the source/deductor, AY/FY are corresponding too.

TRACES 26AS helps you to compare your taxes deducted at various sources and check that you don’t have any multiple deductions for the same transaction. Besides, you’ll know if there has been a tax deduction but is not shown under 26AS. Then it has not been deposited with the Income Tax department. In such a case, you must contact your employer/the source and get it linked to the correct PAN number.

It helps you identify other defects in any deduction made using your PAN.

You can also verify the refund received. Any interest incurred. Thus it enables easy processing at the time of ITR Filing.

Furthermore, if your TRACES 26AS is showing different amounts in TDS than actual deduction, then you can request the IT Department to make the necessary changes. So you avoid notice or penalty from the IT Department.

Form 16 or Form 16A must be reconciled and matched with TRACES 26AS.

What If There’s An Error In 26AS?

It might be due to PAN being incorrectly entered or that the tax deducted has not been paid to the government.

In either case, it is your responsibility to follow up with your source and ask him to rectify. So if o find any error in:

  1. Part A, you must contact Deductor to correct the things.
  2. For error in Part B, get in touch with the Collector of taxes.
  3. Part C follow p with your Assessing officer/bank.
  4. Incorrect Part D, go to the Assessing officer/ITR-CPC.
  5. For Part E errors, contact the concerned AIR filer.

Which is more important, TDS, Form 26AS?

You may wonder why you need TDS certificates when all that information is available on TRACES 26AS. However, both have their own purposes and are significant documents to take.

It is true that Form 26AS is sufficient while ITR Filing. However, Importance of TDS Certificate cannot be undermined. The reason being, both forms together enable you to cross-check and verify the details mentioned. In other words, both documents together provide transparency.

If you do not have one of them, you will not be able to verify and find any mismatch that might have occurred. With both, you can compare and cross-check. If you find any discrepancy, you can easily get it revised.

Further, for salaried people, TRACES 26AS is not sufficient to e-file ITR, because it doesn’t show the breakup of income and details of deductions claimed under Section 80C to Section 80U. These deductions are mentioned in Form 16. Therefore, you need both, a TDS certificate, as well as, Form 26AS.

 

The Income Tax department has notified the last date of filing Income Tax Return forms as of July 31. This is for the assessment year 2019-20 or financial year 2018-19.

As this due date for ITR Filing is fast approaching, get in touch with us at LegalRaasta. Our team of certified and well-experienced CS and CAs will take you flying through the process. Also on offer is the fastest TDS SoftwareITR software, for ease of filing online.

Call us at +91 8750008585 or email your queries to contact@legalraasta.com.

Or you can download our Android App for ease of filing while being mobile.

 

For more information, you can also read:

Income Tax e-Filing

Changes in ITR forms- recent update as on 9th August

 How to save Income-Tax under 80GG?