Form 26AS be checked before Filing ITR is an essential concept for every taxpayer. As we know, Form 26AS records all the taxes paid on your behalf by your employer or clients. Furthermore, people popularly call it a Tax Credit Statement and is a vital document for ITR filing. Therefore, In this article, we will be reading about Why Form 26AS be checked before filing ITR.
Know about Form 26AS before filing ITR
As we previously read, the tax credit form also resembles the name Form 26AS. The yearly consolidated fiscal statement contains a complete report on your revenue and taxes given in a year.
Besides, it provides data that is verified by the tax department’s information on your financial year income and tax payments.
Lastly, it is mandatory to have a 26AS form when filing ITR. The reason is it contains details of the tax deductors and collectors, TDS, etc.
Why Form 26AS be checked before filing ITR
- Firstly, The income tax department only accepts Form 26AS to be authentic. If there is a mismatch in the amount of input tax claiming in an Income tax return and the amount present on Form 26 AS, then the taxpayers get only the amount present in form 26AS.
- Secondly, Discrepancies in Form 26AS can result in confusion. For example, your employer has deducted tax from your salary but might not have deposited it to the income tax department. Therefore, it is advisable to check Form 26AS beforehand.
- Next, compare Form 16 with Form 26AS to ensure that your employer has deducted the correct tax from you. Otherwise, it can result in penalties.
- As a responsible taxpayer, the income tax return or ITR must be synchronized with Form 26AS. If there is any difference between these two, the income tax department may send a tax notice to you. They will demand an explanation for the income or tax income divisions listed herein.
- Consequently, For all analyses and verifications, the IT Department utilizes this Form as the benchmark and, thus, notification shall be given if there is a disagreement.
How one should check these forms before Filing ITR?
To check the Form 26AS, you can follow the steps as follows.
- Download Form 26AS.
- Verify it on the website of the TDS Reconciliation Analysis and Correction Enabling System (TRACES).
However, this may not be simple and require expertise. At E-Startup India, you can get professionals at affordable prices to correctly do ITR Filing for you.
Essentials point to keep in mind before filing ITR this year
Moreover, If you want any other guidance concerning ITR Filing, please feel free to talk to our business advisors at 8881-069-069.
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