The season for submitting income tax returns has begun. Salaried persons and taxpayers are preparing their taxes and investments for the current fiscal year in addition to the tax filing process. In essence, the goal of every taxpayer is to find methods to lower the amount of taxes they must pay within a particular fiscal year.
The Income Tax Department must submit yearly statements in new form 26AS, which include information on Tax Credits in a taxpayer’s account according to the department’s records, before filing income tax returns.
Under Rule 114I of the Income Tax Act, 1961 (Rule 31AB has been deleted with effect from June 1, 2020), traces of Form 26AS must be created.
Conclusion
The whole amount of taxes paid by taxpayers is kept in their accounts as tax credits by the Income Tax Department. Based on the data on their department-provided Form 26AS, taxpayers may make tax credit claims.
