New Form 26AS : Not just TDS, TCS and other tax paid, additional details needed for ITR Filing

On 18th July 2020, Income Tax Department informed that new 26AS form is implemented. Form 26AS has now been revamped to an Annual Information Statement which apart from the TDS/TCS details shall now contain comprehensive information relating specified financial transactions, payment of taxes, demand / refund and pending / completed proceedings undertaken by a taxpayer in a particular Financial Year.

Information regarding new Form 26AS are given below-

A) Existing Form 26AS, was a statement that IT department used to capture TDS & TCS entry.

Now in new Form 26AS, will have a new section known as Section E. It will capture certain high value transactions, which are given below:

1) Invest in mutual fund > 10 Lakhs in a year. That is a large transaction and it will be captured in this statement.

2) Below transactions are included in New Form 26AS:

i) Fixed Deposits together in Bank > 10 Lakhs in a year

ii) Credit Card Bills > 10 Lakhs (in a year) if paid by cheque and > 1 Lakhs if paid by cash

iii) Purchase bonds > 10 Lakhs in a year

iv) Purchase shares > 10 Lakhs in a year

v) Tender shares for buyback > 10 Lakhs in a year

vi) Purchase Fx > 10 Lakhs in a year

vii) Purchase MFs > 10 Lakhs in a year

viii) Real Estate > 30 Lakhs

ix) Purchase of Bank drafts > 10 Lakhs with cash

x) Deposit cash in savings bank account > 10 Lakhs

xi) Cash deposits or withdrawals from current account > 50 Lakhs

And some other routine ones (related to demonetisation)

B) For honest tax payers, it is actually beneficial. Now we have a single point source of all large transactions which will help us.

For those who evaded taxes - earlier also IT dept knew it - Now it is putting it in their face and telling IT knows

C) This is not single transaction value. Anyways all your FDs (or other transactions as detailed above) will be cumulatively (in a single bank) looked at. So, no point trying to make smaller transactions or splitting it.

D) If someone is not paying any taxes saying negligible income but spends > 10 Lakhs, IT department will surely ask him on how he can spend so much.

For Example:  You have negligible income in your tax return and make FDs in Bank of > 10 Lakhs or invest in MFs > 10 Lakhs, be ready for question on without income, how can you save so much.

In fact for last year, based on this data, people have been identified already by IT department.

E) You can check your Form 26AS by using below steps:

1) Log in to your account

 incometaxindiaefiling.gov.in

2) Go to My Account -> View Form 26AS

Thanks

CA Ankit Gupta

+91-9670420619

FB Page- https://www.facebook.com/guptabajaj1