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 2020 and omits Rule 31AB.
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.
Apart from the TDS / TCS details, revised Form 26AS shall now contain information relating to assessor’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 (SFT) which includes the following:
Payment made in cash for purchase of bank drafts or pay orders or banker’s cheque of an amount aggregating to 10 lakh rupees or more in a financial year.
Payments made in cash aggregating to ten lakh rupees or more during the financial year for purchase of pre-paid instruments issued by Reserve Bank of India under Section 18 of the Payment and Settlement Systems Act, 2007 (51 of 2007).
03A – Cash deposits aggregating to fifty lakh rupees or more in a financial year, in or from one or more current account of a person.
03B – Cash withdrawals (including through bearer’s cheque) aggregating to 50 lakh rupees or more in a financial year, in or from one or more current account of a person.
Cash deposits aggregating to 10 lakh rupees or more in a financial year, in one or more accounts (other than a current account and time deposit) of a person
One or more time deposits (other than a time deposit made through renewal of another time deposit) of a person aggregating to 10 lakh rupees or more in a financial year of a person
Payments made by any person of an amount aggregating to—
(i) 1 lakh rupees or more in cash; or
(ii) 10 lakh rupees or more by any other mode, against bills
Raised in respect of one or more credit cards issued to that person, in a financial year.
Receipt from any person of an amount aggregating to 10 lakh rupees or more in a financial year for acquiring bonds or debentures issued by the company or
institution (other than the amount received on account of renewal of the bond or debenture issued by that company)
Receipt from any person of an amount aggregating to 10 lakh rupees or more in a financial year for acquiring shares (including share application money) issued bythe company.
Buy back of shares from any person (other than the shares bought in the open market) for an amount or value aggregating to ten lakh rupees or more in a financialyear.
Receipt from any person of an amount aggregating to 10 lakh rupees or more in a financial year for acquiring units of one or more schemes of a Mutual Fund (other than the amount received on account of transfer from one scheme to another scheme of that Mutual Fund)
Receipt from any person for sale of foreign currency including any credit of such currency to foreign exchange card or expense in such currency through a debit or
credit card or through issue of travellers cheque or draft or any other instrument of an amount aggregating to 10 lakh rupees or more during a financial year.
Purchase or sale by any person of immovable property for an amount of 30 lakh rupees or more or valued by the stamp valuation authority referred to in section 50C of the Act at 30 lakh rupees or more.
Receipt of cash payment exceeding two lakh rupees for sale, by any person, of goods or services of any nature (other than those specified at Sl. Nos. 1 to 10 of Rule114E)
In the Income-tax Rules, 1962 –
(I) rule 31AB shall be omitted;
(II) After rule 114H, the following rule shall be inserted, namely:-
Nature of information
Information relating to tax deducted or collected at source
Information relating to specified financial transaction
Information relating to payment of taxes
Information relating to demand and refund
Information relating to pending proceedings
Information relating to completed proceedings
Any other information in relation to sub-rule (2) of rule 114-I
As the mandate of Form 26AS would be required to be extended beyond the information about tax deducted, it is proposed to introduce a new Section 285BB in the Act regarding annual financial statement. In future it is very difficult to all assessee for hide any information related income tax return.