Changes in Form 26AS – Annual Information Statement (w.e.f. 1st June 2020)
The government has introduced Rule 114-I in Income Tax Rules where Form 26AS has become an Annual Information statement that shall contain a lot of transactions and will not merely be a form for tax credits.
The new Form 26AS shall include the following heads:-
- Information relating to tax deducted or collected at source.
- Information relating to specified financial transactions u/s 285BA. (New addition)
- Information relating to the payment of taxes.
- Information relating to demand and refund.
- Information relating to pending proceedings. (New addition)
- Information relating to completed proceedings. (New addition)
- Any other information from any other law, agreement, function. (New addition)
A vast amount of information will be readily available with the taxpayer, tax practitioners and the department such as: –
- Cash deposits in the savings bank account of more than Rs 10 Lakhs.
- Cash deposits or withdrawals in the current bank account of more than Rs 50 Lakhs.
- Time deposits of more than Rs 10 Lakhs.
- Credit card payments of more than Rs 1 Lakhs in cash.
- Purchase of bonds/ debentures/ shares/ units of Mutual Fund of more than Rs 10 Lakhs.
- Purchase of immovable property of more than Rs 30 Lakhs.
- Cash payments made above Rs 2 lakhs.
Also, the information relating to assessments pending and completed shall be visible in Form 26AS.
Further, information received from any other arm of the government, any other law or any agreement like DTAA will be reported by the authorized person of the income tax.
The additional information which has sought to appear in Form 26AS has been done to move towards digitalization and to link each and every arm/ functionality of the government.
This will ease the compliance for both the taxpayers and tax officials.
The only problem that one could face is when the information is wrongly mentioned in Form 26AS which would lead to litigation and harassment of the taxpayer.