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How Income Tax Form 26AS is made


Those who file ITR must have heard about Form 26AS. This is a TDS statement that is generated by the Income Tax Department. Every PAN holder has a Form 26AS but can be viewed or accessed only by online registration.


    As we know at the time of filing of ITR we need to check Form 26AS once to know the status of TDS that is taxes that had been deducted on our behalf from our income by the payers/deductors.

    When a person pays any income to other person and that payment of income comes under the purview of TDS then the payer will deduct income tax thereon and the balance amount of income after TDS is being paid to us.

    Let us understand with an example. Suppose an Individual makes a fixed deposit with a Bank. Bank pays interest on that FD. This payment of interest comes under the purview of TDS. Therefore the bank will deduct income tax on interest income and after deduction of the income-tax bank will pay the remaining income to the depositor.

    Let us assume interest income is Rs. 100 but pays Rs. 90 to the depositor after TDS. The TDS of Rs. 10/- which the bank has deducted will be reflected in the Form 26AS of the depositor.

    Take one more example. When an employer pays salary to his employees and the salary income is taxable, then also the employer will pay the net salary after deduction of income tax to the employee. The deduction of income-tax will appear in Form 26AS of respective individual employees.

    Steps in the making of Form 26AS

    It is pertinent to note that the deduction of income-tax does not appear automatically in the Form 26AS. It is not the case that on deduction of income tax, the TDS amount auto goes to Form 26AS of the PAN holder.

    It involves many steps and processes after which the TDS goes to Form 26AS and then it is reflected therein. And today we will be discussing these steps and processes involved in making of Form 26AS.

    When the deductor i.e. the person who has deducted the income-tax like bank or employer in our example deducts income tax from your income he has to pay the same to the central government. The deductor has to deposit the tax so deducted into the account of central government. If the deductor does not pay the TDS to the government the TDS will never reflect in the form 26AS. Deductor cannot retain the amount of TDS with him. He has to compulsory deposit the same to the government’s account.

    Even after payment of TDS to the central government account, the TDS figure does not automatically go to Form 26AS. This is one of the steps in the process of making of Form 26AS of a person whose tax has been deducted and deposited by the deductor.

    After the payment of TDS to the government, the deductor, for eg. Bank or employer in the given examples, submits online TDS return to the income-tax department. Just like an individual files his income tax return, the deductor is also required to file TDS return for each and every tax deducted by the deductor from one or more persons.

    It is important to note that TDS return cannot be filed or submitted to income tax department by the deductor if the deductor fails to deposit the  TDS into the account of central government. Thus if TDS is reflecting in Form 26AS one can be assured that the deducted tax has been deposited into the government’s account.

    Information contained in Form 26AS

    The TDS return contains much information on deduction of tax by the deductor. Main information that it contains are –

    Name of the person from whom tax has been deducted
    PAN of that person
    Amount of Income paid to that person
    TDS amount from the Income so paid

    The TDS return contain information for each and every deduction of tax for each and every deductee i.e. whose tax is deducted. All these information are compiled through software and thereafter the TDS return is uploaded on the server of the income tax department.

    The uploaded TDS return is then processed for Form 26AS by the department’s server. The details including TDS amount reported for each PAN is transferred to respective PAN holder’s Form 26AS. In this way the Form 26AS of a PAN holder gets updated based on TDS returns filed by all the deductors.

    The process of making of Form 26AS gets completed here.

    Rectification of TDS returns for wrong information in Form 26AS

    In case there is any mistake committed by the deductor i.e say wrong income amount reported or wrong PAN mentioned or wrong TDS amount reported etc. there is provision for filing of revised return just like an ITR is revised. The deductor can rectify any mistake by filing a correction or revised TDS return.

    Flow-chart of process of making of Form 26AS

    Finally, the process of making of Form 26AS in the reverse approach is explained through a flow chart.


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    Now one may find it easy to understand the making of Form 26AS and will clear doubts about it. In case of any discrepancy in Form 26AS, it is only the deductor who can rectify or correct any mistake in the TDS amount on Form 26AS. The taxpayer needs to contact the deductor immediately to clear any discrepancy in Form 26AS before filing of his Form 26AS.

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