New Version of Form 26 AS with effective from 1st June 2020

Published At: 09-Jul-2020

Form 26AS is an annual consolidated income tax credit statement. It helps the taxpayer to ascertain that the tax deducted and the advance tax paid during the year match with the 

tax deposited as per the tax department’s records. One can directly import the Form 26AS information, while filing Income Tax Returns. This Form can directly be accessed through net banking facility or through e filing website of the Income Tax Department (https://incometaxindiaefiling.gov.in).

Now your form 26AS will not just have information about total income tax paid or refund received, but also about pending and completed proceedings under Income Tax Act. The Central Board of Direct Taxes (CBDT) has notified the new version of form.

The new form will come into effect from June 1, 2020.

Let us look at the changes in Form 26 AS

 

On 28th May 2020, CBDT has notified a new version of Form 26AS by inserting a new Rule 114-I to the Income Tax Rules and now this Form 26AS become Annual Information Statement (AIS) and not merely stand as Tax Credit Statement.

From FY 2020-21 new form 26AS shall include the Following information:

* Details of Tax Deducted or Collected- TDS/TCS

* Details of Specified Transactions such as;

       i.   Cash deposits or cash withdrawals in one or more Current Accounts of Rs. 50 Lac or more annually from one or more current account

         ii.  Cash Deposit in One or more Saving Accounts of Rs. 10 Lakh or more annually

         iii. Fixed Deposit of Rs. 10 Lac or more annually

         iv. Credit card bill payment in cash Rs. 1 Lakh or more or Rs. 10 Lakh from any mode annually

         v.  Payment for acquiring shares (including share application money) of Rs. 10 Lakh or more in a financial year

         vi. Buy back of shares (other than the shares bought in the open market) of Rs. 10 Lakh or more in a financial year

         vii.Purchase of Immovable Property for Rs. 30 Lakh or more·

* Details of Payment of Taxes (Advance Tax/Self-Assessment Tax)

* Details of Demands/Refunds

* Details of Pending Proceedings under Income Tax

* Details of Completed Proceedings under Income Tax


Now, the department has brought all this information under one roof. From the AY 2021-22, assesses would be able to know most of the information that is required for the filing of Income Tax Returns more easily in a single statement.


Benefits of New version of Form 26 AS :-

 

With all the information/ details available at one place, it will also assist tax authorities doing e-assessment and having no or limited interaction with taxpayers, as tax authorities will be able to easily compare information available in AIS vis-a-vis information reported by taxpayer in ITR and any mismatch may be easily flagged by the systems to tax authorities. 

It will also assist the taxpayers to identify and take corrective action, in case any incorrect information/detail is reported in AIS. The AIS has been made more comprehensive pursuant to the announcements made earlier on several occasions 

It would also include information about financial transactions carried out by the taxpayer and would further ease the tax filing process as much of the information would be extracted from this only. 

Other amendments like the inclusion of Details of Demand & Refund and Details of Pending as well as Completed Proceedings are going to be useful for the .assessee. 

Conclusion:-

A major implication of this amendment will be derived through the inclusion of Specified Transactions. Till now all these specified information was available in scattered manner and assessee has to do a tedious job of collecting all these transaction detail as required for filing of Income Tax Return and then File his return of income and in such scenario, there were many instances in which some of the important information which needs to be disclosed in ITR, left out from discloser and as a consequence Information with the Income Tax Department and the information as contained in the ITR do not match and Department used to send notices to the assessee.


Author 

Foram Doshi

Associate

Direct Tax


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