Hiral Vakil
Form 26AS is a consolidated tax credit statement. Taxpayers can download it from their Income Tax e-filing account. From 1st June 2020 onward, Form 26AS will also include high-value transactions such as property & share transactions.
Form 26AS is a consolidated Tax Credit Statement which provides the following details to a taxpayer.
It is a very important document to have while filing ITR. However, you would not want to miss out on tax credits while filing ITR. You can download Form 26AS from the Income-tax e-filing website. The file that the user downloads is password protected. Form 26AS password is the D.o.B (Date of Birth) of the deductee.
The Ministry of Finance has released a new avatar of Form 26AS applicable from 1st June 2020. The notification states that the Form 26AS will be divided into two parts; Part A and Part B. Part A of the Annual Information Statement will contain the details of the Aadhaar number, D.o.B, contact details as well. This helps the taxpayers file their ITR with all the basic details available in the Form 26AS. Part A of the statement is as follows:
| Permanent Account Number | Aadhaar Number | ||
| Name | |||
| Date of Birth/Incorporation | |||
| Mobile Number | |||
| e-Mail Address | |||
| Address | |||
Furthermore, the Annual Information Statement aims to incorporate all the information related to the different income sources. Part B will include details of:
Given below is the format of Part B for your reference:
| Sl. No. | Nature of Information |
| 1. | Information relating to tax deducted or collected at source |
| 2. | Information relating to specified financial transactions |
| 3. | Information relating to payment of taxes |
| 4. | Information relating to demand and refund |
| 5. | Information relating to pending proceedings |
| 6. | Information relating to completed proceedings |
| 7. | Any other information in relation to sub-rule (2) of rule 114-I |
In case of non-government deductors, it means that the payment details mentioned in TDS/TCS filed by the deductor match with the payment details of the same deposited in Bank.
In the case of government deductors, it means that that payment details of TDS/TCS match with the same submitted by Pay and Accounts Officer (PAO).
Follow the steps given below to download Form 26AS
You will land on the dashboard of the new income tax portal.
Click on eFile and then click on income tax returns from the dropdown.
Now, click on View Form 26AS from the dropdown.
Click on confirm.
Once you are redirected to TRACES, you will have to click on proceed to the disclaimer that appears on the screen.
Click on the option to View Tax Credit (Form 26AS).
Select the appropriate assessment year and “Text” under the view as option and click on the option to export the document as a PDF.
Individuals have the option to view Form 26AS from the TRACES portal and can also download it as shown in the previous section. The Income Tax Form 26AS is linked with the PAN. Taxpayers can view Form 26AS from using net banking from the FY 2008-2009. They can view the Tax Credit Statement only if the PAN is linked to the particular account. This facility is available for free.
Every person deducting tax at source has to furnish the details of tax deducted by them to the IT Department. On the basis of the details of TDS provided by the deductor, the Income Tax Department will update Form 26AS of the deductee.
Often the actual amount of TDS and TDS credit as appearing in Form 26AS may differ and it may happen that the TDS credit appearing in Form 26AS may be less as compared to actual TDS, this may happen due to reasons like non-furnishing of TDS details to the IT Department by the deductor, deducting the tax in incorrect PAN, etc. If a discrepancy is due to the deductor, then they may file the TDS/TCS correction statement and correct the same.
The Income Tax Department updates the TDS details in Form 26AS on basis of details provided by the person deducting the tax (i.e., the deductor), hence, if there is any default on the part of deductor like non -furnishing of TDS details (i.e., TDS return) to the ITD, deducting the tax in incorrect PAN, etc. then Form 26AS will not reflect the actual TDS. The taxpayers are advised to confirm the tax credit appearing in Form 26AS and should reconcile the difference, if any.
Yes, the TDS credit in your case will be reflected in your Form 26AS, and, hence you can claim the same while filing ITR. However, the claim of TDS to be made in your return of income should be strict as per the TDS credit being reflected in Form 26AS.
Non-reflection of TDS credit in Form 26AS can be due to several reasons like the non-filing of the TDS statement by the payer, quoting incorrect PAN of the deductee in the TDS statement filed by the payer. Thus, in case of a non-reflection of TDS credit, the payee has to contact the payer for ascertaining the correct reasons for the non-reflection of the TDS credit.
There can be one or more of the following reasons for ‘U’-unmatched status.
Deductor/Collector did not file TDS/TCS Return.
Deductor/Collector has not/incorrectly quoted your PAN in the TDS/TCS Return.
You have not provided your PAN or your provided PAN is incorrect.
Take the following steps in such cases:
Cross-check the TDS information with Form-16 &/or Form-16A.
Ask your deductor to revise the TDS return.
Once they do it and it’s submitted to the department, ask them to update your TDS details.
Form 26AS will be in affect from the 1st of June 2020.
Hey @TeamQuicko
Thanks for the blog! Just one quick question - Why do we have to report a quarterly breakdown of Dividend Income under IFOS?
Thank you!
Hey @TanyaChopra
This quarterly breakdown of Dividend Income under IFOS will help to calculate and determine penalty u/s 234C for the delay in payment of Advance Tax.
Hope this helps!
I had received dividend recently but I had noticed that TDS had been deducted. any idea as to why has it happened and is there a way I can claim this TDS?
Hey @HarshitShah
After the introduction of Budget 2020, dividend income is now taxable in the hands of the shareholder; and is also subject to TDS at 10% in excess of INR 5000 u/s 194 & 194K. Foreign Dividend is taxable at slab rates. TDS is not applicable to such dividends. The taxpayer should report such income under the head IFOS in the ITR filed on the Income Tax Website.
Hope this helps!
Hey @HarishMehta
Yes, dividend income is now taxable from FY 2021-22 onwards and it has to be reported under the head of IFOS.
You can read more about it here:
Hi @Maulik_Padh,
You need to pay Income tax on the net taxable income, i.e. after subtracting deductions, expenses, etc.
If the net taxable income is negative i.e. if there is loss, you can carry it forward when filing the ITR
Here are some of the articles which might help
Hi @ameyj
The amount of TDS deducted shall reflect in your Form 26AS only and it will also reflect the name of the deductor.
Using the name of the deductor you can find out on which share you have received the dividend and you can also cross-check the same in your bank statement.
Yes, you are right, TDS is to be deducted when the dividend paid exceeds 5000 INR in a financial year. However, the 5,000 INR limit pertains to all the dividends an individual gets in a year, or the total dividend per shareholder that a company pays out in a year, is left to interpretation, and hence registrars and share transfer agents (RTA) are not taking any chances and are deducting TDS even on small amounts.
Hope this helps
Hi @ameyj
You can submit a grievance on Income Tax Portal mentioning the issue and also attach the 26AS.
The other option is to leave it as it is and clarify it when the tax department sends the notice.
Hi @TeamQuicko
Consider that I have 10 shares each of 10 different Indian companies. Each of the 10 companies are declaring a dividend of INR 100 before the FY ends. Now I will be recieving 1000 as dividend from each company, thereby a total of 10,000.
The 5,000 dividend limit, is it applicable to each company / total dividend recieved by me in a year. If it is applicable to each company, then I would not attract TDS of 10% for dividend.
Also pl clarify, how would the company B know that I have got shares of Company A,C,D,E so on…
@Saad_C @Laxmi_Navlani @Divya_Singhvi @Kaushal_Soni @AkashJhaveri can you help with this?