CBDT INTRODUCES NEW FORM 26AS- NOW TAX DEPARTMENT KNOWS MORE ABOUT YOU
The Central Board for Direct Taxes (CBDT) has come out with a new improved tax credit statement- form 26AS.
The new form will be containing details about various high-value transactions. CBDT had notified about the new form 26AS back in May 2020. The changes have become effective from June 1, 2020. Its aim is to mainly courage the practice of disclosure of transactions and to improve tax compliance.
Key features/Benefits of new form 26AS
- Improved effectivity of income tax return processing.
- Easy verification of the high-value transactions by the income tax department.
- More comprehensive transaction statement.
- Will facilitate voluntary compliance, tax accountability, and transparency.
- Accurate calculation of tax liability.
- Will specify the pending and completed income tax proceedings.
- Reflection of the status of income tax demand and refund.
Display of various fields such as
- Date of transaction
- Amount of transaction
- Name of the reporting entity
- Single/joint party transaction
- Number of parties
- Mode of payment
- Remarks by the department
What are a high-value transaction and its source
The high-value transactions mainly include
- Bank transactions
- Sale or purchase of immovable property
- Purchase of shares
- Mutual funds
- Buyback of shares
- Cash payment for goods and services etc
The income tax authorities are collecting the information about these high-value transactions from various entities such as
- Mutual funds
- Bonds issuing entities
The new form 26AS will help honest taxpayers while filing their income tax returns. Detailing of the high-value transactions will be displayed distinctly which will facilitate the tax accountability and improved transparency in the whole procedure.
Moreover, this will discourage the concealment of such transactions while filing the income tax returns.
Edited by Minu Mishra
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