1. CONCEPT OF FORM 26AS

Form 26AS is the consolidated annual tax credit statement issued by income tax department. It  contain information about tax deducted by employer, banks and other persons, tax collected on sale made to buyer, refund given, self-assessment tax and advance tax taxes paid, details of high value transactions and TDS defaults.

2. FORM 26AS REVISED IN BUDGET 2020

With the advancement in technology and enhancement in the capacity of system multiple information in respect of person such as sale/purchase of immovable property, share transactions etc. are being captured. In Budget 2020 it was proposed to introduce Form 26AS in new format containing more information of tax payer at one place so that same can be used by tax payer for filing return of income and calculating correct tax liability. The amendment shall be effective from 1st June 2020.

3. DIFFERENCE BETWEEN OLD AND NEW FORM 26AS

S.NO. BASIS OF DIIFERENCE OLD 26AS NEW 26AS
1. Name Annual Statement of tax deducted or collected or paid Annual Information Statement
2. Date of providing Form 26AS Director General of Income tax (Systems) were required to provide Form 26AS by 31 July following the financial year during which taxes were deducted or collected or paid. Required to upload in registered account of tax payer within 3 months from the end of the month in which information is received.
3. More Communication details looking to advancement in Technology Name

Address

PAN

Additional details

Date of Birth

Registered Email ID

Contact No

Aadhar Number

4. Demand Outstanding Details not provided in Old 26AS Will provide details of demand outstanding so that tax payer can timely  verify whether demand shown in his registered income tax account is correct or not.
5. Pending Proceedings Details not provided in Old 26AS Details of pending proceedings and competed assessments will be reflected in Form 26AS to keep taxpayer aware.
6. Completed Proceedings
7. Details of Specified Financial Transaction AIR transactions were reflected in Form 26AS. Banks, mutual fund, institutions issuing bonds, Registrars and Sub Registrars are required to report high value transactions to income-tax authority. The same transactions will be reflected in 26AS for transparency. It will help tax payer in determining correct tax liability.

4. TYPES OF HIGH VALUE TRANSACTIONS

1) Cash deposit/ Withdrawal/ Fixed deposit made in bank account of Rs.10 lakhs or more in all bank accounts and Rs.50 lacs made in all Current accounts.

2) Time deposits made, Purchase of Debentures or bonds, investments made in shares and Mutual Funds, buy back of shares by company, purchase of foreign currency of Rs.10 lacs or more.

3) Payment made from credit card of Rs.10 lacs or more and Rs.1 lacs in Cash.

4) Purchase or sale of immovable property of Rs.30 lacs or more.

5) Cash received for 2 lacs or more against sale of goods or services.

Now onwards if taxpayer enters into above transactions exceeding the above limits, then such information shall be reflected in Part E of Form 26AS in different fields i.e. Date, Amount, Type of transaction, mode of payment, number of parties, single/joint transaction, name of filer, etc.

5. PURPOSE OF BRINGING NEW FORM 26AS

The department in its Press Release dated 18/07/2020 said that this will help honest tax payer with updated financial transactions while filing their return of income whereas it will desist those tax payer who inadvertently conceal financial transactions in their returns. The new Form 26AS would also have information of transactions which used to be received up to financial year 2015-16 in Annual Information Returns (AIR).

OUR COMMENTS-

The Income-tax Department is adopting technology and is creating digitized environment where it is shaking hands with related Departments to extract information of transactions entered by tax payers. It is using technology as its tool for eliminating information barrier and is fastly approaching the tax payers who are wilfully and illegally evading taxes. It is therefore best for us to be honest tax payers and save taxes through legal means of tax planning.

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The Author can be reached at divyaagrawal203@gmail.com. My name is CA Divya Agrawal and I am Practising Chartered Accountant. I also upload educational videos in You tube and name of my channel is FINANCIAL TREE COMPANY. You can also reach me on website www.fintaxsolutions.in.net. My aim is to help people in improving their financial health by spreading knowledge and love.

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6 Comments

  1. Rajiv says:

    If one has paid half theamount +GST for under const. flat and wants to upgrade flat type in same complex, will the GST be refunded ?

  2. Rajiv says:

    If one has paid half the amount + GST for under const. flat and wants to upgrade flat type in same complex, will the GET be refunded ?

    1. divya1990 says:

      1.As per section 194A of Income-tax Act,1961 Co-operative banks and Foreign banks are liable to deduct TDS on interest paid on Fixed Deposits. After amendment made in Budget 2020, they are liable to deduct TDS if amount of interest paid exceeds Rs.40,000/-(in case of senior citizen i.e. persons above 60 years limit is Rs.50,000/-).
      2. Deductor of TDS is liable to file TDS Return and when TDS Return is filed, the TDS deducted is reflected in Form 26AS of the person whose TDS has been deducted. Therefore TDS deducted will be shown in Form 26AS.

      Kindly share any other views or opinions.

  3. VIPAN KUMAR VERMA says:

    A well narrated new format of 26AS for the honest taxpayer of our country. Secondly;- Honest is the best policy we are studying in Our Primary Education. So be Honest.

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