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CBDT notifies New Form 26AS [Annual Information Statement]

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CBDT notifies New Form 26AS [Annual Information Statement]

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.

 

  • 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 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 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:

Code

Description

SFT-001

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.

SFT-002

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).

SFT-003

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.

SFT-004

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

SFT-005

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

SFT-006

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.

SFT-007

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)

SFT-008

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.

SFT-009

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.

SFT-010

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)

SFT-011

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.

SFT-012

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.

SFT-013

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:-

 

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

 

Conclusion:-

 

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.

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