How is Form 26AS important to a deductor and tax payer?
The TDS / TCS deducted by a deductor is reflected in Form 26AS of the respective PAN and this helps in identifying any discrepancy / error. Although deductor cannot view Form 26AS for a PAN, they can view the TDS / TCS deducted / collected by them.
The credits available in the tax statement confirm that:
- The tax deducted / collected by the Deductor / Collector has been deposited to the account of the government
- The Deductor / Collector has accurately filed the TDS / TCS return giving details of the tax deducted/collected on your behalf
- Bank has properly furnished the details of the tax deposited by you
- In future, you will be able to use this consolidated tax statement (Form 26AS) as a proof of tax deducted / collected on your behalf and the tax directly paid by you along with your income tax return, after the need for submission of TDS / TCS certificates and tax payment challans along with income tax returns has been dispensed with by the Income Tax Department (ITD)