Hello and welcome to Part 7 of the Income Tax education series brought to you by H&R Block, the global leader in filing Income Tax Returns.
Today we will try to understand the mystery around form 26AS. So, what is Form 26AS?
Now, a salaried individual generally pays tax in the form of Tax Deducted at Source or TDS. This is deducted by his employer from his monthly salary.
The Income-tax Department maintains the database of the total tax paid by the taxpayer. Form 26AS is the annual statement in which the details of tax credit are maintained for each taxpayer as per the database of Income-tax Department. Form 26AS will reflect the tax credit against the PAN of the tax payer.
Income-tax Department will generally allow a taxpayer to claim the credit of taxes as reflected in his Form 26AS.
Example: Viraj pays an annual tax from his salary of Rs.40,000 per year. The details of this tax deduction at source will be reflected in his FORM 26AS by the Income Tax department based on the tax paid against his account by his employer. This Form will contain a quarterly account of the taxes paid by Viraj.
At H&R Block we always make sure that the taxes deducted by the tax payer match the 26AS records in order to double check if the TDS deducted has been paid in the government account. This acts as a confirmation for proper tax deductions for the tax payer.
I hope you found this useful. If you have any further questions on this topic, please feel free to ask us using #AskBlock.