Form 26AS new changes as per Income Tax Act
Form 26AS is an annual credit statement provided by Income tax department under section 203AA of Income Tax Act, 1961 to help taxpayers to verify Income earned, tax deducted and deposited against his PAN account.
Every individual who is in possession of PAN number can get his Form 26AS via;
1. When you file your individual income tax returns every year, this Form 26AS is available online with portal.
2. Individual can activate his Traces account via link : https://www.tdscpc.gov.in/app/login.xhtml and can view or download this form
1. When you file your individual income tax returns every year, this Form 26AS is available online with portal.
2. Individual can activate his Traces account via link : https://www.tdscpc.gov.in/app/login.xhtml and can view or download this form
Most individuals are surprised how and why these details of income transaction and the tax-related details shown in this Form. Let's see some of the instances of how this happens;
1. The details of advance tax as well as self- assessment tax paid by assessee is included.
2. When employer deducted income tax from monthly salary, this amount is deposited by the employer every month with income tax account for which employer file quarterly returns including details of employee income and tax along with their PAN number
3. Details of Tax Deducted at Source on Sale of Immovable Property u/s194(IA) (For the seller of Property)
4. Details of Paid Refund by Income tax department
5. Any TDS deducted from your FD Interest earned, pension income, any prize winnings, Dividend income, etc
1. The details of advance tax as well as self- assessment tax paid by assessee is included.
2. When employer deducted income tax from monthly salary, this amount is deposited by the employer every month with income tax account for which employer file quarterly returns including details of employee income and tax along with their PAN number
3. Details of Tax Deducted at Source on Sale of Immovable Property u/s194(IA) (For the seller of Property)
4. Details of Paid Refund by Income tax department
5. Any TDS deducted from your FD Interest earned, pension income, any prize winnings, Dividend income, etc
CBDT vide Notification dated May 28, 2020 amended Form 26AS in Sec 285BB w.e.f. 01.06.2020. Key takeaways are:
✍️ New form 26AS will also provide information in respect of “Specified financial transactions” which include transactions of purchase/ sale of goods, property, services, works contract, investment, expenditure, taking or accepting any loan or deposits of such value as may be prescribed but not less than of Rs 50,000.
✍️ Information about income tax demand, refund, proceedings pending, and proceedings completed which may include assessment, reassessment under section 148,153A 153C, revision, the appeal will also be shared in this form 26AS.
✍️ Information on this form 26AS will not be a one-time affair at year-end. This will be a live 26AS, as this will be updated regularly within 3 months from the end of the month in which such information is received.
✍️ Form 26AS will now be a complete profile of the taxpayer for that particular year as against earlier form 26AS which just provided the information about taxes paid by way of TDS/TCS or self-assessing.
✍️ This form will also have mobile no, email I’d and Aadhar no. of the taxpayer.
✍️ Further, an enabling provision has been notified empowering the CBDT to authorise DG Systems or any other officer to upload in this form, information received from any other officer, the authority under any law. Thus any adverse action initiated or taken or found or order passed under any other law such as custom, GST, Benami Law etc. including information about Turnover, import, export etc. will also be put in this form 26AS so that not only the concerned taxpayer but also all the Income Tax authorities will know and have access to such information.
✍️ This form 26AS will also provide information received by Tax Deptt from any other country under the treaty /exchange of information about income or assets of the taxpayer located outside India.
✍️ The implication of this new form 26AS will be that banks, financial institutions or any other authority or customer, buyer etc. while carrying out due diligence of the person/ corporate concerned will now ask for form 26AS so as to be sure that there are not any major issues about such person/corporates.
✍️ This will now make it difficult for any taxpayer to hide information from any bank / financial institution/ authority about any proceedings against under any law or tax demand, tax disputes etc.
✍️ New form 26AS will also provide information in respect of “Specified financial transactions” which include transactions of purchase/ sale of goods, property, services, works contract, investment, expenditure, taking or accepting any loan or deposits of such value as may be prescribed but not less than of Rs 50,000.
✍️ Information about income tax demand, refund, proceedings pending, and proceedings completed which may include assessment, reassessment under section 148,153A 153C, revision, the appeal will also be shared in this form 26AS.
✍️ Information on this form 26AS will not be a one-time affair at year-end. This will be a live 26AS, as this will be updated regularly within 3 months from the end of the month in which such information is received.
✍️ Form 26AS will now be a complete profile of the taxpayer for that particular year as against earlier form 26AS which just provided the information about taxes paid by way of TDS/TCS or self-assessing.
✍️ This form will also have mobile no, email I’d and Aadhar no. of the taxpayer.
✍️ Further, an enabling provision has been notified empowering the CBDT to authorise DG Systems or any other officer to upload in this form, information received from any other officer, the authority under any law. Thus any adverse action initiated or taken or found or order passed under any other law such as custom, GST, Benami Law etc. including information about Turnover, import, export etc. will also be put in this form 26AS so that not only the concerned taxpayer but also all the Income Tax authorities will know and have access to such information.
✍️ This form 26AS will also provide information received by Tax Deptt from any other country under the treaty /exchange of information about income or assets of the taxpayer located outside India.
✍️ The implication of this new form 26AS will be that banks, financial institutions or any other authority or customer, buyer etc. while carrying out due diligence of the person/ corporate concerned will now ask for form 26AS so as to be sure that there are not any major issues about such person/corporates.
✍️ This will now make it difficult for any taxpayer to hide information from any bank / financial institution/ authority about any proceedings against under any law or tax demand, tax disputes etc.