On 18 July 2020, Income Tax Department informed that new 26AS form is now live
Video Presentation available on youtube:
From this Assessment Year, taxpayers will see an improved Form 26AS which would carry some additional details on taxpayers’ financial transactions as specified in the Statement of Financial Transactions (SFTs) in various categories.
Before explaining the new implication I would like to start with basics about what was form 26AS till now.
Till now Form 26AS, was a statement that IT department used to provide you to capture
- Includes info on tax deducted on your income by deductors
- Details of tax collected by collectors
- Advance tax paid by the taxpayer
- Self-assessment tax payments
- Regular assessment tax deposited by the taxpayers (PAN holders)
- Details of refund received by you during the financial year
- Details of the High-value Transactions in respect of shares, mutual fund etc.
Different parts of Form 26AS:
- Part A: Details of Tax Deducted at Source
- Part A1: Details of Tax Deducted at Source for Form 15G/Form 15H
- Part A2: Details of Tax Deducted at Source on sale of Immovable Property u/s194(IA) (For seller of Property)
- Part B: Details of Tax Collected at Source
- Part C: Details of Tax Paid (Other than TDS or TCS)
- Part D: Details of Paid Refund
- Part E: Details of AIR Transaction
- Part F: Details of Tax Deducted on sale of immovable property u/s194IA (For Buyer of property)
- Part G: TDS Defaults* (processing of defaults)
What is new in Form 26AS?
It is stated that the information being received by the Income Tax Department from the filers of these specified SFTs is now being shown in Part E of Form 26AS to facilitate voluntary compliance, tax accountability and ease of e-filing of returns so that the same can be used by the taxpayer to file her or his income tax return (ITR) by calculating the correct tax liability in a feel-good environment. This would also bring in further transparency and accountability in the tax administration.
The Department used to receive information like cash deposit/withdrawal from saving bank accounts, sale/purchase of immovable property, time deposits, credit card payments, purchase of shares, debentures, foreign currency, mutual funds, buy back of shares, cash payment for goods and services, etc. under Section 285BA of Income-tax Act, 1961 from “specified persons” like banks, mutual funds, institutions issuing bonds and registrars or sub-registrars etc., with regard to individuals having high-value financial transactions since the Financial Year 2016 onwards. Now, all such information under different SFTs will be shown in the new Form 26AS.
Implying Form 26AS for any taxpayer from now onwards will display in part E of the Form different fields such as, type of transaction, name of SFT filer, date of transaction, single/joint party transaction, number of parties, amount, mode of payment and remarks etc.
What are high value transaction?
For e.g.: If you invest in a mutual fund > 10 lacs in a year. It is a transactions and it will be captured in this statement.
The investment need not be in one transaction, it will account for cumulative investment throughout the financial year.
14 types of transactions are included and here is the full list:
- Fixed Deposits together in Bank > 10 lacs in a year
- Credit Card Bills > 10 lacs (in a year) if paid by cheque and > 1 lacs if paid by cash
- If you buy bonds > 10 lacs in a year
- If you buy shares > 10 lacs in a year
- If you tender shares for buyback > 10 lacs in a year
- If you buy Foreign Exchange > 10 lacs in a year
- If you buy MFs > 10 lacs in a year
- Real Estate > 30 lacs
- Purchase of Bank drafts > 10 lacs with cash
- If you deposit cash in savings bank account > 10 lacs
- Cash deposts or withdrawals from current account > 10 lacs
And some other routine ones
How will the change affect Taxpayers?
The earlier Form 26AS used to give information regarding tax deducted at source and tax collected at source relating to a PAN, besides certain additional information including details of other taxes paid, refunds and TDS defaults. But now, it will have SFTs to help the taxpayers recall all their major financial transactions so that they have a ready reckoner to enable them while filing the ITR.
Implying for honest tax payers, it is actually beneficial. Now they have a single point source of all large transactions which will help us and for those who evaded taxes earlier also IT dept knew it, now it is putting it on their face and telling IT knows. The new Form 26AS would also have information of transactions which used to be received up to Financial Year 2015-16 in the Annual Information Returns (AIR).
How can you check your Form 26AS?
You can view Form 26AS on TRACES portal and download it (see below for the step-by-step guide on how to download Form 26AS). This income tax Form 26AS is linked with your PAN You can view Form 26AS from FY 2008-09 onwards – Via netbanking of your bank account. The facility is available to a PAN holder having a net banking account with any authorized bank. You can View Tax Credit Statement (Form 26AS), only if your PAN number is linked to that particular account. This facility is available for free. List of banks registered with NSDL for providing a view of Tax Credit Statement (Form 26AS) are as below: List of banks registered with NSDL for providing view of Tax Credit Statement (Form 26AS) are as below:
- Axis Bank Limited
- Bank of India
- Bank of Maharashtra
- Bank of Baroda
- Citibank N.A.
- Corporation Bank
- City Union Bank Limited
- ICICI Bank Limited
- IDBI Bank Limited
- Indian Overseas Bank
- Indian Bank
- Kotak Mahindra Bank Limited
- Karnataka Bank
- Oriental Bank of Commerce
- State Bank of India
- State Bank of Mysore
- State Bank of Travancore
- State Bank of Patiala
- The Federal Bank Limited
- The Saraswat Co-operative Bank Limited
- UCO Bank
- Union Bank of India
2) Go to My Account -> View Form 26AS
All previous years is already be updated with this. So you can look at it for the past
For 2019-20, data is yet to be updated
Contact us for any information and help:
Email: nitinmpathak@gmail.com
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Annexure
Press Release dated 18.07.2020 on Part-E of New Form 26AS showing Specified Financial Transactions (SFT)
Government of India
Department of Revenue
Ministry of Finance
Central Board of Direct Taxes
New Delhi, 18th July. 2020
PRESS RELEASE
New Form 26AS is the Faceless hand-holding of the Taxpayers
The new Form 26AS is the faceless hand-holding of the taxpayers to e-file their income tax returns quickly and correctly. From this Assessment Year, taxpayers will see an improved Form 26AS which would carry some additional details on taxpayers’ financial transactions as specified in the Statement of Financial Transactions (SFTs) in various categories.
It is stated that the information being received by the Income Tax Department from the filers of these specified SFTs is now being shown in Part E of Form 26AS to facilitate voluntary compliance, tax accountability and ease of e-filing of returns so that the same can be used by the taxpayer to file her or his income tax return (ITR) by calculating the correct tax liability in a feel-good environment. This would also bring in further transparency and accountability in the tax administration.
The earlier Form 26AS used to give information regarding tax deducted at source and tax collected at source relating to a PAN, besides certain additional information including details of other taxes paid, refunds and TDS defaults. But now, it will have SFTs to help the taxpayers recall all their major financial transactions so that they have a ready reckoner to enable them while filing the ITR.
It is further explained that the Department used to receive information like cash deposit/withdrawal from saving bank accounts, sale/purchase of immovable property, time deposits, credit card payments, purchase of shares, debentures, foreign currency, mutual funds, buy back of shares, cash payment for goods and services, etc. under Section 285BA of Income-tax Act, 1961 from “specified persons" like banks, mutual funds, institutions issuing bonds and registrars or sub-registrars etc., with regard to individuals having high-value financial transactions since the Financial Year 2016 onwards. Now, all such information under different SFTs will be shown in the new Form 26AS.
It is stated that the Form 26AS for any taxpayer, from now onwards, will display in part E of the Form, different fields such as, type of transaction, name of SFT filer, date of transaction, single/joint party transaction, number of parties, amount, mode of payment and remarks etc.
Furthermore, this would help the honest taxpayers with updated financial transactions while filing their returns, whereas it will desist those taxpayers who inadvertently conceal financial transactions in their returns. The new Form 26AS would also have information of transactions which used to be received up to Financial Year 2015-16 in the Annual Information Returns (AIR).
(Surabhi Ahluwalia)
Commissioner of Income Tax
(Media & Technical Policy)
Official Spokesperson. CBDT
