Income Tax : New Form 26AS now captures a lot of information

Income Tax : New Form 26AS now captures a lot of information

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Created By Admin Last Updated Fri, 09-Oct-2020

Section 203AA of the Income tax act, 1961, provides that the Director-General of Income-tax systems shall deliver a statement in Form 26AS to every person from whose income the tax has been deducted or collected and in whose respect tax has been paid. Form 26ASis a tax passbook which provides the details of all taxes paid by or on behalf of an assessee. In order to enlarge the scope of Form 26AS, the Finance Act, 2020, has omitted section 203AA with effect from 01-06-2020 and new section 285BB has been introduced from the same date.

Consequently, the Central Board of Direct Taxes (CBDT) vide Notification No. G.S.R. 329(E), dated 28-5-2020,has omitted Rule 31AB and inserted a new Rule 114-I. Rule 114-I provides that an annual information statement in Form No. 26AS shall be uploaded, by the Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems) or any person authorised by him, in the e-filing account of the assessee. Such statement shall be uploaded within 3 months from the end of the month in which the information is received by him.

Consequently, the Central Board of Direct Taxes (CBDT) vide Notification No. G.S.R. 329(E), dated 28-5-2020,has omitted Rule 31AB and inserted a new Rule 114-I. Rule 114-I provides that an annual information statement in Form No. 26AS shall be uploaded, by the Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems) or any person authorised by him, in the e-filing account of the assessee. Such statement shall be uploaded within 3 months from the end of the month in which the information is received by him.

 

New Form 26AS is divided into 2 parts. Part A contains certain basic information of the assessee, i.e., Permanent Account Number, Aadhaar number, Name, date of birth/Incorporation, Mobile number, Email address and address. Part B contains the information in respect of the following transaction:

a)      Information relating to tax deducted or collected at source;

b)     Information relating to Specified Financial Transactions (SFT);

c)      Information relating to payment of taxes;

d)     Information relating to demand and refund;

e)      Information relating to pending proceedings;

f)       Information relating to completed proceedings; and

g)  Information received from any officer, authority or body performing any functions under any law or information received under an agreement referred under section 90 or section 90A or information received from any other person to the extent it may be deemed fit in the interest of the revenue.

Information in respect of Specified Financial Transactions will be reflected in Form 26AS only if:

1)  Such transaction has been entered into for an amount in excess of the threshold prescribed section 285BA read with Rule 114E. Example, Cash deposited or withdrawn from one or more current account for an amount of Rs. 50 lakh or more; and

2)  Person with whom such the transaction has been entered, has furnished a statement of financial transaction.