Benefits of using online Form 26AS

If you think keeping track of your tax details — tax deducted at source (TDS), paid or refunds received — involves a lot of paperwork, you are obviously not using Form 26AS.

Form 26AS is a consolidated tax statement of individuals compiled by the Tax Information Network (TIN) for the Income Tax Department. It includes details about advance taxes paid, refunds received, TDS and taxes collected at source during the financial year.

The form, however, is no substitute for the advance tax, Form 16 and the TDS certificates that one needs to attach while filing hisher income tax returns. As chartered accountant Shubhada Shahade explains, “If you need to file your returns, but haven’t received your TDS certificates on time, you could know the amount by looking up Form 26AS.”

Accessing Form 26AS
You can access the form online by registering on the National Securities Depository Limited’s TIN website. But this involves the need for verification and a fee. You could either visit the TIN office or a verification and pay Rs 17. Or, you could have a TIN official visiting you to conduct the verification. You would be charged Rs 110 in this case.

But some banks have started offering free access to Form 26AS on their websites. The bank’s customer simply uses his net banking facility to view the statement. At present, 16 banks have tied up to provide the service.

Advantages
Aurangabad-based chartered accountant Nandkumar Kulkarni says, “The details uploaded on the form help you run checks on your tax liabilities and rectify any error, before it is too late.”

So, suppose there is an error in the amount of advance tax, you can approach the bank for requisite changes well ahead in time. This exercise may save you from paying a penalty of one per cent monthly interest on the outstanding amount.

However, one needs to remember that in case of any discrepancy in the receipt numbers of the advance tax paid by the individual, the one mentioned on the From 26 AS will be considered valid by the authorities.