On 28th May, 2020, vide Income Tax (11th Amendment) Rules, 2020, effective from 1st June, 2020, Income Tax department deleted Section 203AA of Income Tax Act read with Rule 31AB of Income Tax Rules, 1961 and inserted a new Rule 114-I to introduce amendment in Annual Information Statement in by revised form 26AS.
Section 203AA read with Rule 31AB of Income tax Act, 1961 requires the Director General of Income Tax or any other person authorised on his behalf to send details to every taxpayer in Form 26AS-Annual Information Statement. Form 26AS contains following details:
- PAN, Name and Address of Taxpayer
- PART A – Details of Tax Deducted at Source
- PART B – Details of Tax Collected at Source
- PART C – Details of Tax Paid (other than TDS or TCS)
- Part D – Details of Paid Refund
- Part E – Details of SFT Transaction
- PART F – Details of Tax Deducted at Source on Sale of Immovable Property u/s 194IA/ TDS on Rent of Property u/s 194IB (For Buyer/Tenant of Property)
- PART G – TDS Defaults (Processing of Statements)
Therefore, Revised Form 26AS helps in prevention of tax evasion and also assists tax payers in disclosing complete details in Income Tax return.
Amended Form 26AS The Income Tax Act- (11th Amendment), 2020
Revised form 26AS contains more detailed information and help in better check over tax evasion.
The amended version of the Form 26AS highlights every transaction details above a certain limit that includes the credit card bills, Bank deposits and any other investments by the taxpayers.
The intention of bringing this new amendment in the Taxation system to generalise the information flow and transparency between the tax authorities and tax-payers.
The new revised Form 26AS will help the tax authorities to maintain the assesses profile and the transaction details for better tax filing with full confidentiality. It will help the taxpayers as well to regulate their overpayments or dual tax payments in the same financial year.
1. Salient features of Revised Annual Information Statement (Form 26AS):
Rule 114-I, read with Section 258BB of Income Tax Act, requires the Principal Director of Income Tax (Systems) or Director General of Income Tax (System) to upload Annual Information Statement in form 26AS in every taxpayer’s account.
In addition to the information reported in original Form 26AS, revised Form 26AS requires reporting of following additional information
1.1 Aadhar Number, Date of Birth, Mobile Number and Email address of taxpayer in revised form 26AS
More updated information will help the department authority in better maintenance of data.
1.2 Information relating to specified financial transactions in revised form 26AS
Income Tax act required specific persons, including financial institutions, to report certain information to department authorities. Transactions required to be reported are:
- Transaction of purchase, sale/ exchange of goods or property or right or interest in a property; or
- transaction for rendering any service; or
- transaction under a works contract; or
- transaction by way of an investment made or an expenditure incurred; or
- transaction for taking or accepting any loan or deposit
Department has notified various transactions to be reported as SFT in Rule 114E
1.3 Information relating to demand and refund in revised form 26AS
Earlier information to demand was not available in form 26AS. However, the amended form 26AS contains information related to demand or refund related to the taxpayer.
1.4 Information relating to completed and pending proceedings in revised form 26AS
Information against pending proceeding is also available in form 26AS. Therefore, it is not possible for the taxpayer to hide information related to its proceedings.
1.5 Revised Form 26AS will update within 3 months
The information provided on this Form 26AS, it’s not only a one-time affair as an yearly basis. Form 26AS will update within 3 months from the end of the month in which information is received.