Form 26AS is a consolidated statement issued under Section 203AA of Income Tax Act and Rule 31AB of Income Tax rules to all PAN number holders. This provide following auto-populated details to tax payer based on various statements or returns filed by other persons or by assessee himself:-
- Details of Tax deducted and tax collected by other persons for such PAN. Therefore, Form 26AS provides a proof that tax has been deducted and collected on your behalf.
- Confirms that TDS has been deducted by different entities and deposited by the deducted into the account of government
- Details of Income tax deposited for corresponding PAN.
1. Changes in New Form 26AS
Government is taking all the measures to collect information from counter parties, so that undisclosed incomes can be reduced to minimum. With this objective present form of 26AS has been replaced with “Annual Information Statement” which contains more auto-populated details about corresponding PAN.
The Central Board of Direct Taxes (CBDT) has notified a new Form 26AS vide Notification No.30/2020 dated 28th May, 2020 through which Rule 31AB has been omitted and a new rule Rule 114-I has been inserted. Changes have become effective from 1 June 2020 replacing the earlier Form 26AS.
Form 26AS provides information for a particular financial year. The new Form 26AS seeks to provide following additional data:-
- Additional Basic details about PAN Holder
- Details of specified financial transactions
- Tax demands and tax refunds
- Pending and completed income tax proceedings
2. Additional Basic Details about PAN holder in form 26AS
Presently, Form 26AS was disclosing Name, PAN and address of PAN Holder. However, revised Form 26AS will contain information following additional information also:
- Aadhar Number
- Date of Birth
- Mobile Number
- Email Id
3. Details of specified financial transactions in form 26AS
With an objective to reduce undisclosed income, Income tax act has created onus on various parties such as Banks, Stock brokers etc. to report specific financial transactions to IT department.
Read Also: TDS on professional Fee, Technical Fee & Royalty | Section 194J of Income Tax Act
Specified Financial transactions includes:
| Nature of Transaction | Reporting person |
| Aggregate cash deposit for Rs 10 lakhs or more in saving bank account | Bank or Co-operative Bank |
| Cash deposit or withdrawal amounting Rs. 50 Lakhs or more in one or more current account of a person in a year | Bank or Co-operative Bank |
| Cash received for amount exceeding Rs. 2 Lakhs for the sale of goods or rendering of services. | Any person who is liable for tax audit under Section 44AB |
| Expenditure in foreign currency via debit card, credit card or traveller’s cheque for the amount Rs.10 Lakh or above in a year. | Authorised Dealer, Money Changer, Offshore Banking Unit, Any other person authorised to deal in foreign exchange or foreign securities |
| Payment by credit card amounting Rs.10 Lakhs or above in a year | Credit Card Issuing Authority |
| Credit card bill paid in cash for Rs 1 lakhs or more. | Credit Card Issuing Authority |
| Purchase or sale of immovable property having value of Rs. 30 Lakhs or above. | Inspector-General or Registrar or Sub-Registrar under the Registration Act, 1908 |
| Mutual Fund Investment in a year of Rs 10 lakh or more. | A trustee of a Mutual Fund or such other authorized person managing the affairs of Mutual Fund |
| Purchase of bonds or debentures for Rs 10 lakh or more in a year. | A company or institution issuing bonds or debentures |
| Purchase of shares of company for Rs 10 lakh or more. | A company issuing shares |
There are various other transactions for which reporting is required. Therefore, any person having such transactions need to make proper disclosure in IT Return.
4. Information about Income Tax Demand and Refund in New form 26AS
Presently, information related to Income tax demand and refund are available after login into the Income tax portal under specific tab. However, now Form 26AS also contains details of Income tax demand and refund.
Earlier, information related to Income tax refund paid was available. Now, it is yet to check whether it shows details of refund due or not.
5. Information related to Income Tax proceedings in New form 26AS
Information related to Income tax proceedings was available post login at Income Tax portal under specific tab. However, in new Form 26AS such information has been incorporated in Form 26AS itself.
Therefore, details of pending proceedings against PAN holder will auto-populate in Form 26AS.
6. Benefit of Form 26AS while filing Income tax return
A taxpayer should ensure that the income tax return or ITR is in sync with Form 26AS. In case of any discrepancy, the income tax department may issue a tax notice to seek explanation for such discrepancies in the figures of income or TDS appearing in Form 26AS and income tax return.
The earlier Form 26AS only provided information regarding tax deducted at source and tax collected at source relating to a PAN. However, now it provides some additional information also such as details to specified financial transactions.
