Be careful of Credit Card transaction etc | Amended Form 26AS (Annual Information Statement)
- Yogesh Suthar
- Aug 15, 2020
- 3 min read
Form 26AS is also popularly known as tax passbook. It is an important piece of document for a taxpayer to file his income-tax return (ITR) and to get essential tax information.
It is like a ledger of all financial transactions which needs to be informed to the Income-tax Department or vice-versa.
It contains various important information related to taxpayers, inter-alia, credit card, cash transactions, details of tax deducted/collected against his PAN, details of refund paid, etc.
It shall come into force with effect from the 1st day of June 2020.
Part-A Contains
The new format will show your
Aadhaar number
Date of birth
Mobile number
E-mail ID and your address.
Part- B Contains
Information relating to tax deducted or collected at source:
All TDS is linked to your PAN, this form lists out the details of TDS deducted on your income by each deductor for all kinds of payments made to you – whether those are salaries or interest income – all TDS linked to your PAN is reported here. This form also has income tax directly paid by you – as advance tax or self-assessment tax.
Information related to specified financial transactions (Click here)
Along with the details of tax deducted from various income sources such as
Cash Transaction
Credit Cards
Investment
Foreign Currency Transaction.
Information relating to the payment of taxes
Information related to income tax proceedings
An individual can now also check the status of any income tax proceedings via Form 26AS. The revised Form 26AS will show if there are any pending proceedings that are on-going with the income tax department or if the proceedings are completed. However, it is yet to be seen what additional details regarding the proceedings will be shown in the Form 26AS
Information related to income tax demand and refund
Want to know if a tax refund has been paid to you for the year or if you have an outstanding tax demand against your name? The new Form 26AS will contain this information as well.
"Earlier, this information could be checked by logging in to your account on the e-filing website of the income tax department. However, now outstanding tax demand or income tax refund will be available in the Form 26AS as well. Currently, it shows details of the tax refund paid to an individual. However, it is yet to be seen if now on it will continue to show the tax refund amount that has been paid or the amount that is due to the individual."
With the launch of The Transparent Taxation: Honoring the Honest on 13th August 2020, Honourable PM Narender Modi announced a landmark shift in the income tax administration to make it simple, painless and transparent.
Recently The Finance Ministry has also proposed new measures to ensure better compliance by expanding the scope of Reporting of following Transactions and reporting the same in New Form 26AS
Payment of Educational Fee/Donations above Rs. 1 lakh per annum
Electricity Consumption Bill of more than Rs 1 lakh per annum
Domestic business class air travel or foreign travel
Payment to Hotel above Rs 20,000
Purchase of jewelry, white goods, paintings, marble, etc above Rs 1 lakh
Deposits/credits in the current account above Rs 50 lakh
Deposits or credits in the non-current account above Rs 25 lakh
Payment of property tax above Rs 20,000 per annum
Life insurance premium above Rs 50,000
Health insurance premium above Rs 20,000
Share transactions, Demat account, bank lockers
The government has also proposed to deduct TDS/collect TCS at higher rates for those who do not file Income Tax Returns (ITR). There is also a proposal for compulsory filing of ITR by those who have their bank transactions above Rs. 30 lakh, all professionals, businesses having turnover above Rs. 50 lakh, and payment of rent above Rs. 40,000.
DISCLAIMER :
The information contained herein is generic in nature and is meant for basic educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product/Examnination purpose. Subject to Amendments. Yogesh Suthar is not liable for any decision arising out of the use of this information.
Comments