One of the necessary digital initiatives of tax authorities has been to offer Type 26AS to every taxpayer. Generally known as the Annual Tax Assertion, Type 26AS combines all incomes and corresponding taxes for the taxpayer for a given monetary yr (FY), as reported to tax authorities.
Alok R Agrawal – Accomplice, Deloitte India, says: “Type 26AS has been re-designed considerably over time. Presently, it offers particulars on important features akin to tax deducted from revenue sources (wage, curiosity, lease, dividend, sale proceeds of home property, and many others.); revenue the place taxes will not be deducted or NIL (taxpayer has filed Type 15H or 15G); tax deducted from sale proceeds of digital digital belongings, tax collected on particular transactions akin to international remittances, buy of automobile, abroad journey; curiosity on prior yr tax refunds; calls for on account of defaults in tax withholdings by taxpayer, and many others.”
Earlier than submitting an annual private tax return, it’s essential to test Type 26AS for a number of causes. Some are outlined beneath:
* Type 26AS offers all revenue/ corresponding tax particulars at one place in consolidated method. With out 26AS, it will likely be tough to reconcile/ hold monitor of quarterly withholding tax certificates issued by every payer individually;
* Helps to make sure completeness within the tax return submitting by guaranteeing right gross quantities of revenue from totally different payers is offered upfront – receipts within the checking account may very well be after tax has been deducted in order that correct quantity is reported;
* Help taxpayers in claiming correct quantity of credit for tax deducted or collected by numerous events – this data could also be scattered throughout numerous credit score advices, invoices, and many others. in any other case;
* Reporting based mostly on Type 26AS ensures that the automated processing of tax return just isn’t affected by mismatches;
* Incorrect reporting of revenue and tax particulars by numerous events in taxpayer’s identify (e.g., tenants paying lease, employer paying wage, banks paying curiosity, and many others.) may be flagged upfront for correction with the respective events on well timed foundation;
* Finally, the above results in lesser possibilities of receiving disagreeable tax notices from authorities looking for to levy extra tax/ curiosity calls for.
As may be seen from above, Type 26AS is a robust device offered by tax authorities that simplifies the method of getting ready and submitting tax returns precisely. Taxpayers ought to take full advantage of this data supply.
