Thursday, 16 July 2015

Can I file my Income Tax Return only on the basis of Form 26AS?

It's not the best practice because a number of times the deductors make errors such as:

1. Deducting your TDS but not depositing it with the tax authorities.
2. Deducting your TDS and depositing it in incorrect PAN or PAN of some other deductee.
3. Depositing someone else's TDS in your PAN.
4. Deducting and depositing your TDS but not filing the TDS return, or incorrect filing of TDS return.

In the cases mentioned above, your amounts of payments received and TDS deposited will not be reflected accurately. Thus, if you file your income tax return based on only the data reflecting in Form 26AS, there is a possibility of filing of incorrect or incomplete information.

In a number of cases, correct TDS amounts do not appear in Form 26AS at the time of filing of return, and then the assessee reminds the deductor to correct his TDS return or deposit the TDS, if not already deposited so that the information in Form 26AS is complete and correct.

Remember that Form 26AS is not your primary source of information about your incomes for the year, but only a secondary source. You may file your returns based on information reflecting in Form 26AS, but there could be a possibility of error, as is seen in a number of cases. So you can do it in case you do not find primary documents evidencing your incomes, but you must tread carefully.

I am also assuming that you know that there are many types of incomes, which do not appear in your Form 26AS as TDS may not have been deducted on them.

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