In accordance with the provisions of the IT Act, a person (deductor) who is liable to make payment for certain specified transactions such as salary, interest, commission, rent, fees for professional services and many more, to any other person (deductee) is supposed to deduct tax at source (TDS) and remit the same into the account of the Central Government. What is Form 26AS?įorm 26AS is an Annual Tax Statement, specific to a Permanent Account Number (PAN) furnished in accordance with erstwhile Section 203AA read with second provision to section 206C(5) of the Income Tax Act, 1961 (hereinafter referred to as the ‘IT Act’) and erstwhile Rule 31AB of Income Tax Rules, 1962 (hereinafter referred to as the ‘IT Rules’). Here’s a deep dive into what the Form 26AS, AIS and TIS are and how to use them for filing taxes. However, in order to promote transparency and simplifying the tax return filing process, the Central Board of Direct Taxes (CBDT) expanded the scope of Form 26AS by way of introducing AIS and Taxpayer Information Summary (TIS) to help provide a complete profile of the taxpayer for a particular year. Taxpayers initially referred to Form 26AS for reconciling their tax details, especially tax deducted at source (“TDS”) and tax collected at source (“TCS”) credits, etc. It is important that before furnishing their tax returns, the tax filers review the same and reconcile their financial data to avoid unwarranted notices and tax demands. Form 26AS and Annual Information Statement (AIS) are important documents which are made available by the income tax authorities to the tax filers using technology and the information collated from the above. Over the past few years, the tax filings in India have become digital and due to the requirement of furnishing a permanent account number (PAN) for any major financial transaction, the tax authorities have access to a lot of information regarding the tax filers.
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