If you are a business owner, you will need to file Form 26AS with the Internal Revenue Service (IRS). This form shows information about the tax collected at the source and the advance tax paid to the IRS. The 26AS is broken up into seven sections. Learn more about how to read this form. You can also learn more about tax deductions at the source in this article. This form is available in PDF or online format. Here are some important tips on how to read the Form 26AS:
Form 26AS
In order to report TDS (Tax Deducted at Source) to the Indian government, a taxpayer should file Form 26AS. This form has seven parts - Part A deals with the TDS component while Part B outlines the taxes collected. Part C includes information on other taxes paid by the taxpayer apart from TDS. For example, if he sold his immovable property for a profit and deducted TDS from the proceeds, then he needs to file Form 26AS for that transaction.
It shows tax deducted at source
It shows tax deducted at source, the amount that the company withheld from your payments and whether you paid any taxes on the money. You can also check the total tax deducted in your financial year using Form 26AS. The tax deducted at source is the tax you owe to the government before the money is sent to you. In Part A of the form, you can view details such as the deductor, the payment date and amount, and the tax that was deducted from the payment. The details are also shown in Part B of the form.
Tax collected at source
Tax collected at source (TCS) is a new law that aims to combat large-scale tax evasion. It was introduced in the Income Tax Act, 1961, as a means to combat money laundering and tax evasion. As a business owner, you are required to collect tax from your customers, deposited it with the government, and then report it to the Internal Revenue Service within a certain time frame.
Advance tax paid
If you receive a cheque for more than Rs. 10,000 from an employer, it's likely that you'll need to submit a Form 26AS. This statement confirms that you've deducted the correct amount of tax, and that the money has been deposited in the appropriate government account. Sometimes, the bank will make a mistake and deposit the wrong amount. In such a case, you need to contact your employer to fix the error and submit the correct amount of tax.
Defaults in TDS
Defaults in TDS for 26aS is a report stating details of the TDS deducted and deposited. The report also shows the defaults made by a taxpayer against various TANs registered under the same PAN. However, this report does not reflect demands that an assessing officer may have made to the taxpayer. The report also shows the turnover of a taxpayer. The user can view and download this report from TRACES website.
