REVISED FORM 26AS-ANNUAL INFORMATION STATEMENT FROM ASSESSMENT YEAR (AY) 2020-2021- A FACELESS HANDHOLDING OF THE TAXPAYERS
Overview of revised 26AS Provisions
The CBDT notifies vide notification number 30/2020 the revised Form 26AS which is effective from June 1, 2020. Budget 2020-21 had introduced a new Section 285BB in the Income Tax Act to implement revised Form 26AS which provides that the prescribed income-tax authority or the person authorized by such authority shall upload in the registered account of the assesse an annual information statement in such form and manner, within such time and along with such information, which is in the possession of an income-tax authority, as may be prescribed.
Explanation—for the purposes of this section, “registered account” means the electronic filing account registered by the assesse in designated portal, that is; the web portal designated as such by the prescribed income-tax authority or the person authorized by such authority.
Insertion of New Rule114-I under the Income-tax (11th Amendment) Rules, 2020–
(1) Provides that the Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems) or any person authorized by him shall, under section 285BB of the Income-tax Act,1961, upload in the registered account of the assesse an annual information statement in Form No. 26AS containing the information specified in column(2) of the table below, which is in his possession within three months from the end of the month in which the information is received by him
(2) The Board may also authorize the Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems) or any person authorized by him to upload the information received from any officer, authority or body performing any function under any law or the information received under an agreement referred to in section 90 or section 90A of the Income-tax Act,1961 or the information received from any other person to the extent as it may deem fit in the interest of the revenue in the annual information statement referred to in sub-rule(1).
Analysis of Provision
- Who are benefited?
“From this Assessment Year, every taxpayers will see an improved Form 26AS which would carry some additional details on taxpayers’ financial transactions as specified in the Statement of Financial Transactions (SFTs) in various categories.
- Why revamped 26AS covers the various Specified Financial Transactions?
This would help the honest taxpayers with updated financial transactions while filing their returns, whereas it will desist those taxpayers 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 the Annual Information Returns (AIR).
- What is the benefit?
The earlier Form 26AS used to give information regarding tax deducted at source and tax collected at source relating to a PAN, besides certain additional information including details of other taxes paid, refunds and TDS defaults. But now, it will have SFTs to help the taxpayers recall all their major financial transactions so that they have a ready reckoner to enable them while filing the ITR such as purchase/sale of immovable property, investment and expenditure, time deposits, credit card payment, cash payment for goods and services etc. The changes will make it easier for individuals to facilitate voluntary compliance, calculate tax liability accurately, and bring greater accountability and transparency and ease of e-filing ITR in a feel good environment. The information being received by the Income Tax Department from the filers of these specified SFT’s is being shown in the Part E of Form 26AS.
- When from the provision is available?
The effective date is 01st June 2020 and is applicable form this assessment year 2020-2021.
- Where revamped Form 26AS expands?
The sub rule (2) of Rule 114-I expands the revamped form 26AS to the information received from any officer, authority or body performing any function under any law or the information received under section 90 or 90A agreement that is Double Taxation Avoidance Agreement providing relief from double taxation or any information deemed fit in the interest of the revenue in the annual information statement
Link to Section 90 and 90A of the Income Tax Act 1961
https://www.incometaxindia.gov.in/_layouts/15/dit/pages/viewer.aspx
https://www.incometaxindia.gov.in/Acts/Finance%20Acts/2006/102120000000009948.htm
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