In a tweet, the Income Tax (I-T) department said: “CBDT recently brought out the new form 26AS for ease of filing of Income Tax Returns (ITRs) by taxpayers. The new form is a faceless handholding of taxpayers, to help them with updated financial transactions,so as to facilitate voluntary compliance &easy e-filing.”
Form 26As is an annual consolidated tax statement that can be accessed from the income tax website by the taxpayer using their permanent account number (PAN).
The I-T department had notified a revised Form 26AS on May 28, which apart from containing details of tax collected or deducted at source (TCS/TDS) will also include comprehensive information pertaining to specified financial transactions (SFTs), payment of taxes, demand/refund and pending/completed proceedings undertaken by a taxpayer in a particular financial transaction.
In a statement, the CBDT said the earlier Form 26As used to give information regarding tax regarding tax deducted at source and tax collected at source relating to a PAN besides certain additional information including details of other taxes paid, refunds and TDS defaults. But now, it will have SFTs to help the taxpayers recall all their major financial transactions so that they have a ready reckoner to enable them while filing the ITR.
“This will enable taxpayers to file income tax return (ITR) by calculating the correct tax liability in a feel-good environment. This will also bring in further transparency and accountability in the tax administration,” it added.
The information being received by the department from the SFT filers including date and type of transaction like single/ joint party transaction, number of parties, amount, mode of payment and related fields will now be shown in part E of the new form 26AS.
Information pertaining to cash deposit or withdrawal from saving bank accounts, sale or purchase of immovable property, time deposits, credit card payments, purchase of shares, debentures, foreign currency, mutual funds, buyback of shares, and cash payment for goods and services under section 285BA of Income Tax Act, 1961 from ‘specified persons’ like banks, mutual funds, institutions issuing bonds and registrars or sub-registrars with regard to individuals having high-value financial transactions were being received by the I-T department since financial year 2016. However, CBDT said that all such information under different SFTs will be shown in the new Form 26AS.
The CBDT further noted that the revised Form 26AS would help honest taxpayers in filing their returns while, it will desist those who inadvertently conceal financial transactions in their returns.
The new Form 26AS will also have information of transactions which used to be received up to the financial year 2015-16 in annual information returns.