With that time of the year when we are all scurrying around to get our documents in place for the income tax return filing season, it is always good to be informed of any changes in the forms. For AY 2020-21, the government has announced some changes in Form 26AS. Form 26AS (Tax Credit Statement) is the yearly explanation where the subtleties of expense credit are kept up for every citizen according to the database of the Income Tax Department. Form 26AS will reflect the tax credit against the PAN of the taxpayer. It contains details of different taxes deducted on your salary by deductors: be it your employer, bank, or even a tenant.
The form includes details of any advance duty or self-assessment tax that you may have paid during the year. Aside from that, details of tax collected at source (TCS) are likewise referenced in this form. It will likewise state subtleties of any Income Tax Refund received from the tax department during the relevant financial year. Aside from this, it additionally reflects subtleties of Annual Information Return (AIR), which is filed by various entities dependent on what an individual has contributed or spent on mostly high-value transactions.
Changes in Form 26AS
The Central Board of Direct Taxes (CBDT) has announced some new changes in Form 26AS. From this year, the Statement of Financial Transactions (SFTs) will assist the assessees with recalling the money related exchanges to document reckoner ITR.
From now and into the foreseeable future, all the exchanges like cash deposit/withdrawal from savings account, credit card installments, purchase of shares, debenture, foreign currency, deal/acquisition of immovable property, mutual funds, buyback of shares, and cash payment for merchandise and ventures will be recorded in the form. This change in the form will make the form more detailed and transparent
More Communication Details
Till now in the Form 26AS, only some particular details of an individual had to be filled such as Name, Address, and PAN however the new Form will witness an addition of different other section of details, for example, Date of Birth, Registered Email Address, and Mobile/Phone number. This alteration has been done to keep you mindful of the given communication choices, and it will also help you to update the details whenever required.
Details about Taxes and Proceedings
The old version of form 26AS comprise of details of taxes deducted and gathered from you, alongside the details of taxes paid by you, the new version of the form will likewise have Advance Tax or Self Assessment Tax. This expansion will assist you with verifying whether your manager/bank/payer of the tax has deposited the tax with the government or not and if not, you can take legal action against them.
The Income Tax Department will likewise give subtleties of Demands which are extraordinary. This sort of data will assist you with verifying whether a similar demand is really extraordinary or disputed. In case if the demand is disputed, you can rectify your mistake or file an appeal or file an application for condonation of delay if the due time has already passed.
The form will also include details of pending Income Tax as per the Tax Department and details of proceedings that have finished during the year. This detail is particularly added to keep you mindful of the pending Income Tax.
Details of Financial Transactions
Presently, small entities like banks, mutual funds, stock exchanges, and so on require details of different financial transactions done above the particular limits in order to give it to the tax department on a yearly basis. As these details are safe with the IT Department, so from now on, the department will make it available in Form 26AS.
The details will be about the sum paid to banks for getting demand drafts and furthermore for orders alongside subtleties of cash deposited and withdrawn over certain limits. These subtleties are required in case, if you have deposited an amount more than Rs 10 lakh in one year, in one or more than one bank account under a similar bank. The cutoff for the current account is Rs 50 lakh.
The form will also have more details, for example, purchase of shares, foreign exchange, acquisition of bonds, and also, debentures are being reported by the organizations which make its way to the Income Tax Department.
In Case, if the total value of a steady property outperforms Rs 30 Lakh, then a registrar is required, and it becomes necessary to provide the subtleties of purchaser and buyer to the tax department. The same set of details will appear in the new version of the form. If any inappropriate detail is filled in the form, whether it is by or by others, it will be highlighted in the form so that you can rectify, report, or remove it.
The new version of Form 26AS is quite informative for the taxpayers and as well as the Income Tax Department and these are welcome changes in Form 26AS. More information will positively help the citizens who unintentionally passed up a major opportunity detailing certain salaries and got a warning in the form of a notice from the tax department. It will likewise function as an impediment for citizens who accidentally hid data in their income tax returns.