August 10, 2020

Form 26AS | Changes made with effect from 01.06.2020

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.

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.

DISCLAIMER: The views expressed are strictly of the author and VJM & Associates LLP. The contents of this article are solely for informational purpose. It does not constitute professional advice or recommendation of firm. Neither the author nor firm and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any information in this article nor for any actions taken in reliance thereon.

CBDT notifies revised Form 26AS, include real estate, share transaction details

Income Tax requires specific persons, including financial institutions, to report certain information to department authorities in revised form 26AS.

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