Check your AS 26 and find clarity of income tax paid

Check your AS 26 and find clarity of income tax paid

One of the ways in which an individual can check the position of their tax deducted and other details is by looking at their AS 26 statement. This statement has all the details of the individual at a single place and hence is a very useful tool for everyone but in many cases the individual is not even aware of this statement and what needs to be checked in there. By looking closely at the details the right tax paid figures will already be present and there are less chances of any shocks at the time of the assessment of the individual. At the same time ensuring that the details in the AS 26 match with the figures of the income tax returns also ensures that the assessment process will be smooth. Here is a closer look what are the things that a person should consider in their AS 26. 

Different tax deductors

One of the first things that an individual will notice in their form AS 26 is that it lists out each of the entities or persons who have deducted tax for them and then paid this to the government. This is the first line of check as every person has to determine that all the entities who have actually deducted tax for them are visible here. This will ensure checking that the details that have been entered by the entity are correct because it is essential that the tax that has been deducted is matched with the PAN of the individual as any mistake here could have the figures shown in some other persons statement and this could become a matter where the individual could face difficulty in claiming the benefit. 

Properly matched 

Against each of the entities there is the level of income that the individual would have earned from them and the tax that has been deducted. There has to be a close look at these figures to see that they match with the actual figures because it should not be that a part of the income and the tax is not visible here which can complicate the issue of claiming the required credit. Once the figures have been matched then the next thing to do is to actually see that there is a proper credit that will be available to the individual. This is because there is an indication of whether the matching has taken place between the figures submitted by the entity making the deduction and what the government sees in their kitty so once this match has been done then there should not be any problem with the claiming of this figure.

Interest income

 Most people are only concerned with the amount of tax deducted and the reflection of this in the AS 26 statement but if a person looks at the details carefully then they can get a lot more out of the information that is present here. Take for example the case of interest income especially that, which is earned from fixed deposits with the bank. There are two angles to this where the first is the amount that is received and the other is the accrued figure that is present till the end of the financial year. The individual would have no idea of how much interest has been accrued because they will know just the amount that has been paid out at the time of the date of interest payment. This figure of the accrued interest and the tax that has been deducted on it can be seen in this form. Thus it becomes very important to match the details of the interest income that is shown here with the figure that is actually seen in the income tax return so that the right amount is shown in the income tax return.

Tips to get ready for the income tax return filing.

Tips to get ready for the income tax return filing 

Documents such as form16, interest certificate on home loan, TDS certificate and proof of 

your investments should be ready with you to ensure smooth filing of income tax returns.

The preparation of the process of filing income tax returns begins with the collection of various documents that will go into compiling the working for the taxable income and the tax to be paid there. Within this there are a few important things that one must not miss out and hence if these are available with the individual beforehand then there is no problem in making the various computations and paying the required amount of tax. Here is a closer look at some of the important documents that would need to be present. 

Form 16 
One of the basic requirements for the salaried is the presence of the Form 16. This is useful due to a number of reasons where the first one is that for the salaried individual all the information is present at a single place so a lot of the work for the individual taxpayer is done as this becomes the basis on which most of the details in the tax return is available for use. In addition to this there is also an idea of the kind of deductions that have been considered by the employer and the individual can then check these against the documents that they have and the actual amounts invested so that they are able to claim the right amount. The different incomes that are considered in the Form 16 will also give an idea about the incomes that still need to be added at the time of the filing of the return.

Interest deduction certificate 
If there is a housing loan that an individual has then there would be the equated monthly instalments that are repaid during the year. These consist of two parts - interest and capital repayment. Depending upon the rate of interest that is applicable plus the time period and the amount on the loan that remains outstanding there will be a split in the EMI amount between these two heads of interest and capital. The financial institution to whom the housing loan EMI is paid would give a certificate at the end of the year that would give the break-up of the interest and the capital and this would be required for the purpose of claiming the tax benefit for the year on housing loans.

TDS details 

There would be several other incomes for the individual which could include the likes of fixed deposit interest or even some professional income and when this is received there is likely to be a tax deduction at source on the amounts earned on them. This will be required for the purpose of filing the tax return because the credit of the tax deducted would have to be claimed at the time of the return filing. If there are TDS certificates then these have to be collected for all the different sources of income and this would help in the matter because there would be both the presence of the income earned from these routes as well as the tax deducted on them at the same place that can be used for the tax workings. 

Investment details 

There are other documents like the PPF investment slip or the premium paid receipts on various insurance products which would be both the life insurance ones and the health insurance that would be essential for the income tax return filing. In addition investments that give a tax benefit like some investment in equity linked savings scheme or even the senior citizen savings scheme and so on would require some proof of these investments. If there is a copy of the receipts or the statements that show the respective investments made during the year then it makes the entire return filing process even easier as the details can be considered without much trouble.