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Home Articles Simple Things To Save Tax - Save Tax Form 16, Form 26AS

Simple Things To Save Tax - Save Tax Form 16, Form 26AS

IndianMoney.com Research Team | Updated On Friday, July 13,2018, 12:21 PM

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Simple Things To Save Tax - Save Tax Form 16, Form 26AS

 

 

 

The last date to file taxes, July 31st, is fast approaching. I am sure you have already filed Income Tax Returns. If you have not, it’s time to hurry up and do so.

You have to pay a penalty of Rs 5,000, if you file ITR between August 1st 2018 and December 31st 2018. If you file ITR after January 1st 2019 and March 31st 2019, you will have to pay Rs 10,000 as a penalty.

Before filing ITR, there are some simple things you need to know. Let’s take a look at some of these simple things on tax.

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Simple Things To Save Tax

 

Take a look at Form 16

 

Form 16 is a certificate issued by your employer, showing the TDS deducted and deposited with the Government.  You need this information to file ITR.

 

Why do you need the Form 16?

  • You get the taxable salary.
  • You get the breakup of the Section 80C deductions.
  • You have the aggregate of Section 80C. (This gives you the gross and deductible amounts under this Section)
  • Tax Deducted at Source also called TDS.
  • Tax payable or the tax refund.

 

Take a look at the basics of Form 16:

Form 16 (Part A):

  • You have the name and address of the employer.
  • This contains the TAN and PAN of the employer.
  • Your PAN.
  • The summary of the tax deducted and then deposited each quarter with the tax department, which has been certified by your employer.

 

Form 16 (Part B)

  • This gives the detailed breakup of the salary.
  • You also have the Chapter V1A deductions (Section 80C to Section 80U).
  • You also have Section 89.

 

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Take a look at Form 26AS

 

When you file Income Tax Returns, the tax officer matches the entries in Form 26AS with the ITR filed. Do check your Form 26AS online, and make sure there are no mismatches with Income Tax Returns (ITR) and the Form 26AS. Form 26AS gives details of various taxes which have been deducted from your income. You need this to file ITR. You can assess the Form 26AS from the income tax website.

Take a look at Form 26AS to understand where tax has been deducted on your income. You also get an idea of the taxes, paid on your behalf by the employer, banks and so on to the Government. Form 26AS also has the details of deductors like banks, who have deducted TDS. You get their names and TAN (Tax Deduction Account Number).

 

  • Form 26AS gives you an idea on tax refunds:

If you have got any tax refunds in the relevant financial year, you will find them in Form 26 AS.

  • Form 26AS for the buyer of an immovable property:

If you buy an immovable property, you have to deduct TDS from the amount you pay, to the person who sold you the property. This will show up in Form 26AS.

  • TDS for rent on property:

Let’s say you are a resident Indian and receive rent in excess of Rs 50,000 a month. Then the payer (the person who pays you the rent), has to deduct TDS on this rent, before he makes the payment to you. Details of tax deducted will show up in your Form 26AS.

  • Form 26AS has the details of your high value transactions:

Any high value transactions like purchase of an immovable property, buying of high value corporate bonds and the purchase of costly mutual funds show up in Form 26AS.

  • Any details of advance taxes paid:

Let’s say you have paid advance taxes in a financial year. These details will be reflected in the Form 26AS.

 

What to do if there is an error in Form 26AS?

 

You have to verify the details in the Form 26AS and bring any discrepancy in details to the notice of the tax deductor. Any tax mismatch would bring the taxman to your doorstep.

 

Be Wise, Get Rich.

 

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