Know difference between Form 16 and Form 26AS

Know distinction between Type 16 and Type 26AS

Each Type 16 and Type 26AS are associated to tax deductions in India, however they serve totally different functions.

Type 16 and Type 26AS maintain vital significance for taxpayers as they act as proof of the revenue earned and the tax deducted at supply (TDS) all through the fiscal yr. Usually offered by the employer, Type 16 is handed to staff by or earlier than the fifteenth of June of the following monetary yr. Type 26AS is a consolidated tax assertion that comprises particulars of all of the taxes which might be deposited with the federal government on behalf of a taxpayer.

Tax kinds will be complicated! Right here’s a fast breakdown of Type 16 vs. Type 26AS:

Type 16 encapsulates important data together with the worker’s title and PAN (Everlasting Account Quantity), employer’s particulars, revenue figures, tax deductions, and different pertinent particulars.

Can You File ITR With out Type 16?

Type 16 can also be important for submitting ITR because it comprises all the mandatory particulars required to calculate the taxable revenue and the quantity of tax payable. With out Type 16, it could be troublesome for salaried staff to file their ITRs precisely and effectively, which can lead to penalties or authorized points. Nonetheless, ITR will be filed with out Type 16 offered all particulars are appropriately filed by the taxpayers.

Furthermore, Type 16 is accepted as legitimate proof of revenue by banks and monetary establishments when staff apply for loans or bank cards. Due to this fact, salaried staff should get hold of Type 16 from their employers yearly and hold it secure for future reference.

People who wouldn’t have Type 16 might get hold of tax from Type 26AS.

OptionsType 26ASType 16
Issued byIT divisionEmployer
FrequencyAnytime downloadableYearly
AmbitTDS on all revenue sources (wage, curiosity, and so forth.)TDS on wage solely

What Is Type 26AS?

Type 26AS is a consolidated tax assertion that comprises particulars of all of the taxes which might be deposited with the federal government on behalf of a taxpayer. It’s a assertion that displays the tax credit score in a taxpayer’s account.

Type 26AS is one thing you need to be conscious of if you’re an individual or a enterprise submitting tax returns. Type 26AS, which serves as a unified tax credit score system, is important in all tax funds made in your behalf by your organization or purchasers. It comprises necessary data relating to Tax Deducted at Supply (TDS) and Tax Collected at Supply (TCS) from numerous revenue sources resembling banks and employers.

It consists of;

  • Particulars of TDS on wage, curiosity revenue, lease, and different sources.
  • Particulars of TCS, if any.
  • Particulars of Advance Tax/Self-Evaluation Tax/Common Evaluation Tax paid by the taxpayer.
  • Particulars of high-value transactions like property purchases, investments, and so forth. if any.
  • Particulars of tax refunds obtained within the monetary yr.

How To Obtain Type 26AS?

Type 26AS will be downloaded anytime from the TRACES web site (https://eportal.incometax.gov.in/).

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