Till Now, Form 26AS had always been an annual credit statement issued by the income tax department to help taxpayers cross-verify income earned, Tax deducted at Source (TDS) and tax deposited during a given financial year.
In the new picture, Form 26AS will now be a complete profile of the taxpayer which will have comprehensive information on taxes paid, details of pending and completed income tax proceedings, status of income tax demand and refund among others.
Key takeaways of the New Form 26AS released by CBDT vide Notification dated 28th May, 2020 by way of amendment in Sec 285BB w.e.f 01st June, 2020 are:
1. This form will also have mobile no, Email-id and Aadhar no. of the taxpayer.
2. Information on the form will not be a one-time affair at year 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.
3. 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 form, 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
4. New form 26AS will also provide information in respect of “Specified financial transactions” which includes the following:
5. Further an enabling provision has been notified empowering the CBDT to authorise DG Systems or any other officer to upload in this form, information received from any other officer, authority under any law. Thus 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 will also be put in this form so that not only the concerned taxpayer but also all the Income Tax authorities will know and have access to such information.
6. This form will also provide information received by Tax Department from any other country under the treaty /exchange of information about income or assets of the taxpayer located outside
With the launch of The Transparent Taxation: Honoring the Honest on 13th August,2020, Honourable PM Narender Modi announced a landmark shift in the income tax administration to make it simple, painless and transparent.
The Finance Ministry has also proposed new measures to ensure better compliance by expanding the scope of Reporting of following Transactions and reporting the same in New Form 26AS:
The government has also proposed to deduct TDS/collect TCS at higher rates for those who do not file Income Tax Returns (ITR). There is also a proposal for compulsory filing of ITR by those who have their bank transactions above Rs. 30 lakh, all professionals, businesses having turnover above Rs. 50 lakh and payment of rent above Rs. 40,000.