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.
Key Features of New Form 26AS
Enhanced Information
- 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.
Implications for Taxpayers
- 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.
Information Contained in New Form 26AS
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:
SFT Codes and Descriptions
| Code | Description | |----------|----------------| | SFT-001 | Cash Payment Aggregating 10 Lakhs or More made in a Financial Year for Purchase of Bank Drafts or Pay Orders or Banker's Cheque | | SFT-002 | Cash Deposits Aggregating 10 Lakhs or More in a F.Y. in one or more Saving Accounts | | SFT-003 | One or More Time Deposits Aggregating 10 Lakhs or More in a F.Y. | | SFT-004 | Payments made for Credit Card bill in a F.Y. for 1 Lakh or more in Cash or 10 Lakhs or more by any mode other than cash | | SFT-005 | Amount Received Aggregating 10 Lakhs or More during a F.Y. 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 | | 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 |
Nature of Information in Form 26AS
| 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 |
Legal Framework
In the Income-tax Rules, 1962 -
(I) rule 31AB shall be omitted;
(II) After rule 114H, the following rule shall be inserted, namely:- 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.
Important Points to Remember
1. Live Document: Form 26AS is now a live document updated regularly within 3 months from the end of the month in which information is received.
2. Comprehensive Information: It contains not just TDS/TCS details but also SFT transactions, tax payments, demands, refunds, and proceedings.
3. Due Diligence: Banks and financial institutions will use Form 26AS for due diligence, making it difficult to hide information.
4. Transparency: The new form promotes transparency and makes it difficult for taxpayers to hide information about tax disputes, demands, or proceedings.
5. Regular Updates: Information is updated regularly, not just at year-end, ensuring current and accurate information.
Conclusion
In future it is very difficult to all assessee for hide any information related income tax return.
The new Form 26AS is a comprehensive document that provides a complete picture of a taxpayer's financial transactions, tax compliance, and any pending or completed proceedings. This enhanced transparency will help in better tax compliance and reduce tax evasion.
Taxpayers should:
- Regularly check their Form 26AS to ensure all information is accurate
- Reconcile their ITR with Form 26AS before filing
- Address any discrepancies or mismatches immediately
- Maintain proper documentation for all financial transactions
- Be aware that banks and financial institutions may request Form 26AS for due diligence