Notification No. 30/2020– CBDT notifies new Form 26AS [Annual Information Statement] pursuant to Finance Act, 2020 and amendment, inserts new Rule 114-I to be effective from June 1st and omits Rule 31AB.

Budget 2020-21 had introduced a new Section 285BB in the Income Tax Act to implement revised Form 26AS . In that effect CBDT has notified new FORM 26AS [Annual Information Statement] via Notification No. 30/2020 dated 28th May 2020, Rule 31AB has been omitted and Rule 114-I has been inserted after Rule 114H to share annual financial information in respect of each taxpayer not only of taxes paid by of TDS/TCS or otherwise.

  • This form will also have mobile no, email I’d and Aadhar no. of the taxpayer.
  • Information on this form 26AS will not be a onetime affair at year end. This will be a live 26AS , as this will be updated regularly within 3 months from the end of the month in which such information is received.
  • The revised 26AS Form is more comprehensive and informative and will be a complete profile of the taxpayer for a particular year
  • The implication of this new form 26AS will be that banks , financial institutions or any other authority or customer , buyer etc. while carrying out due diligence of the person/corporate ,concerned will now ask for form 26AS so as to be sure that there are not any major issues about such person/corporates.
  • As a result of introduction of New 26AS now it will be difficult for any taxpayer to hide information from any bank / financial institution/ authority about any proceedings against under any law or tax demand , tax disputes etc .

Apart from the TDS / TCS details, revised Form 26AS shall now contain information relating to assessee’s specified financial transaction (Information of property and share transactions etc.), payment of taxes, demand/ refund and pending / completed proceedings.

This new form 26AS will also provide information in respect of specified financial transactions which indudes the following:

Purchase/ sale of goods/property/ services
Works contract
Taking or accepting any loan or deposits of such value as may be prescribed but not less than of Rs 50,000
Investment and Expenditure
Income tax demand and refund
Proceedings pending and proceedings completed which may include assessment, reassessment under section 148, 153A & 153C revision , appeal

An enabling provision has been notified empowering the CBDT to authorise DG Systems or any other officer to upload in this form 26AS the following information received from any other officer, Tax Department or authority under any law so that not only the concerned taxpayer but also all the Income Tax authorities will know and have access to such information.

Any adverse action initiated or taken or found or order passed under any other law such as custom , GST , Benami Law etc. including information about Turnover , import, export etc
From any other country under the treaty /exchange of information about income or assets of the taxpayer located outside India

New Form-26AS relating to FY 2020-21 shall contain the following information:

Sl. No Nature of information
1. Information relating to tax deducted or collected at source (TDS or TCS)
2. Information relating to specified financial transaction (SFT)
3. Information relating to payment of taxes
4. Information relating to demand and refund
5. Information relating to pending proceedings
6. Information relating to completed proceedings
7. Any other information in relation to sub-rule (2) of rule 114-I

Extract of Newly Inserted Section 285BB of Income Tax Act, 1961- Inserted Vide Finance Act, 2020

Annual information statement.

103. After section 285BA of the Income-tax Act, the following section shall be inserted with effect from the 1st day of June, 2020, namely:—

285BB. The prescribed income-tax authority or the person authorised by such authority shall upload in the registered account of the assessee an annual information statement in such form and manner, within such time and alongwith 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 assessee in designated portal, that is, the web portal designated as such by the prescribed income-tax authority or the person authorised by such authority.’.

Extract of Rule 31AB which has been omitted

[Annual statement of tax deducted or collected or paid.

The Director General of Income-tax (Systems) or the person authorised by the Director General of Income-tax (Systems) shall deliver,

(1) to every person from whose income the tax has been deducted; or

(ii) to the buyer referred to in sub-section (1) or, as the case may be, to the licencee or lessee referred to in sub-section (1C) of section 206C from whom the amount has been collected; or

(iii) to every person in respect of whose income the tax has been paid,

a statement referred to in section 203AA or the second proviso to sub-section (5) of section 206C, in Form No. 26AS by the 31st July following the financial year during which taxes were deducted or collected or paid.

Extract of Newly Inserted Rule 114-I of The Income Tax Rules, 1962

Text of the Same is given in Notification No. 30/2020 posted below

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MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)

Notification No. 30/2020

New Delhi, the 28th May, 2020
INCOME-TAX

G.S.R. 329(E).—In exercise of the powers conferred by section 285BB read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:—

1. Short title and commencement.-(1) These rules may be called the Income-tax (11th Amendment) Rules, 2020.

(2) They shall come into force with effect from the 1st day of June, 2020.

2. In the Income-tax Rules, 1962

(I) rule 31AB shall be omitted;

(II) after rule 114H, the following rule shall be inserted, namely:-

Annual Information Statement

114-I. (1) The Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems) or any person authorised by him shall, under section 285BB of the Income-tax Act,1961, upload in the registered account of the assessee 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:─

TABLE

Sl. No Nature of information
(1) (2)
(i) Information relating to tax deducted or collected at source
(ii) Information relating to specified financial transaction
(iii) Information relating to payment of taxes
(iv) Information relating to demand and refund
(v) Information relating to pending proceedings
(vi) Information relating to completed proceedings

(2) The Board may also authorise the Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems) or any person authorised 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).

(3) The Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems) shall specify the procedures, formats and standards for the purposes of uploading of annual information statement referred to in sub-rule (1).”

(III) in Appendix II, Form 26AS shall be substituted by the following Form, namely:-―

Form 26AS Annual Information Statement

[See rule 114-I ]

Financial Year:
XXXX-XX
Assessment Year:
XXXX-XX

Part A

Permanent Account Number: Aadhaar Number:
Name :
Date of Birth/Incorporation:
Mobile No. :
Email Address :
Address:

Part B

Sl. No Nature of information
1. Information relating to tax deducted or collected at source
2. Information relating to specified financial transaction
3. Information relating to payment of taxes
4. Information relating to demand and refund
5. Information relating to pending proceedings
6. Information relating to completed proceedings
7. Any other information in relation to sub-rule (2) of rule 114-I

[Notification No. 30/2020/F. No. 370142/20/2020-TPL]

ANKUR GOYAL, Under Secy.

Note : The principal rules were published in the Gazetted of India, Extraordinary, Part II Section 3, Sub-section (ii) vide number S.O. 969 (E) dated the 26th March, 1962 and last amended by the Income-tax (10th Amendment) Rules, 2020 vide notification No. G.S.R. 315(E), dated the 27-5-2020.

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With Inputs from https://icmai.in

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9 Comments

  1. vswami says:

    OFFhand
    As perceived by one, and personally understood:
    Sub-rule (2) and (3) of the new Rule 144I, is, in terms, of relevance, and has application to the ‘all information statement’ (‘AIS’ ) referred to in sub-rule (1). Obviously, that could be expected to come into force/ in essence, be acted upon, – and also be in place for viewing by taxpayers , – only after the procedural formalities specified/ indicated therein have been fully framed and finally completed.

    As such, the point of intriguing doubt on which there seems to be no clarity is, – whether , in the interim, the 26AS – and the ‘AIR’ (AIS !) , – as earlier prescribed ,do or do not, continue to be in place, so as to be of use to, besides others, the taxpayers, for verifying the relevant DATA , such as TDS, TCS, etc., uploaded thus far , or to be done even thereafter , unless and until the new Rule becomes operational !!!
    OVER to professionals, in active field practice, to thoughtfully spare and eminently share, for enlightenment in proper light?!

    1. PREM SAGAR KUNDE says:

      It is a good thing that pending E-proceedings will be incorporated in form 26AS, so that bank authorities also will come to know the same, when assessee goes for loan etc. It is avery good thing. thanks for posting.

  2. Ravindran T says:

    Excellent articles on amendments introduced by FA 2020 on Direct and indirect taxes, that are useful to professionals in the field.

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