Filing ITR? Do Not Miss Form 26AS Before Submitting Your Return

Salaried taxpayers usually start their income tax return filing with Form 16. That is natural, because it gives salary details and the tax deducted by the employer. But Form 16 alone is not enough. Before filing the return, taxpayers should also check Form 26AS, Annual Information Statement (AIS), Taxpayer Information Summary (TIS), bank interest, dividend income, capital gains statements, and other income details.

Form 26AS is a tax statement linked to a taxpayer’s PAN. It shows tax deducted at source, tax collected at source, advance tax, self-assessment tax, and some other transactions reported to the income tax department.

This document becomes important because the department also looks at the same information while processing the return. If the income shown in the return does not match the information available with the department, the taxpayer may face questions later. In some cases, the refund may be delayed. In others, the taxpayer may get a demand or a notice.

Why Form 26AS Should Be Checked

For a salaried person, the first thing to check is whether the Tax Deducted at Source (TDS) deducted by the employer is correctly reflected in Form 26AS. The amount should match Form 16. If there is a difference, the taxpayer should not ignore it.

But salary TDS is only one part of the picture. Many taxpayers also earn interest from savings accounts, fixed deposits, recurring deposits, bonds, or other investments. Banks may deduct TDS on such income. Some taxpayers may also have dividend income, capital gains from mutual funds or shares, rental income, or property transactions. These details may show up in Form 26AS, AIS, or TIS, according to a recent report by The Times of India.

The problem starts when the taxpayer files the return without checking these statements. For example, a bank may have reported interest income, but the taxpayer may forget to include it in the ITR. Or TDS may have been deducted but may not be visible due to an error in the deductor’s filing. Such issues can later lead to mismatch notices.

What If There Is A Mistake

Mistakes in Form 26AS or AIS are not uncommon. Sometimes TDS does not show properly. Sometimes income is shown twice. There can also be cases where a transaction does not belong to the taxpayer at all, but appears against the PAN.

If salary TDS is missing or wrongly shown, the taxpayer should contact the employer. If the mistake relates to bank interest or TDS, the bank has to be approached. If the issue is linked to rent, property sale, or any other transaction where another person deducted tax, that deductor may have to correct the TDS statement.

Taxpayers can also give feedback in AIS if a transaction is wrong, duplicated, or does not relate to them. This is useful because AIS may contain information from several sources. However, if the TDS credit itself is missing, the deductor’s correction is usually important.

Why Filing Too Early Can Create Trouble

Many taxpayers want to file the return as soon as Form 16 is received. That may not always be a good idea. Form 26AS and AIS can get updated as employers, banks, mutual funds, companies, and other reporting entities file or revise their statements.

So, before pressing the submit button, taxpayers should download the latest available Form 26AS and AIS from the income tax portal and compare the details with their own records.

It is also a good idea to keep copies of Form 16, Form 26AS, AIS, TIS, bank interest certificates, capital gains statements, and tax payment challans. These documents may be needed later if the return is questioned or if the taxpayer has to revise the return.

The safer approach is to file only after checking all income and tax details properly. A few extra checks at the beginning can save taxpayers from refund delays, mismatch notices, and unnecessary follow-ups with the tax department.

FAQs

1. Is Form 16 enough for filing ITR?
No. Taxpayers should also check Form 26AS, AIS, TIS, bank interest, dividend income, and capital gains details before filing the return.

2. What should taxpayers do if Form 26AS has an error?
They should contact the employer, bank, or deductor, depending on where the mistake has occurred. They can also submit feedback on the AIS portal.

3. Why should taxpayers avoid filing ITR in a hurry?
Form 26AS and AIS may get updated later as banks, employers, and other entities revise their statements. Filing without checking these details may lead to mismatches or notices.