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Explained - New Form 26 AS -Information's reported to Income tax authority on your behalf.

Income tax Form 26 AS - New information's (specifically high-value transactions) which will be auto-filled in your ITR form by the department and will be used to cross-verify your ITR.

 

Form 26 AS will be available with redefined format and additional information's, effective from June 1, 2020. New Form 26 AS, now, along with TDS/TCS and taxes paid information, will contain information regarding tax refunds and demands (if any) against your PAN, information about specified financial transactions such as stocks you have bought or sold, real estate transactions, payment details of credit card bills etc.


New form has been notified by the government via notification dated May 28th 2020.


Here's all the details your form 26 AS will contain henceforth:-


Form 26 AS will be in two parts- Part "A" and Part "B".


Information in Part"A"


  • New format of Form 26 AS

The new form 26 AS will show all your personal details such as Name, Aadhaar number, PAN card, date of birth, mobile number, email ID and your address.


Information in Part -"B"


Details under following heads will be auto-populated in your 26 AS.

  • Information relating to tax deducted or collected at source.

Like earlier, all the TDS deducted and submitted against your PAN and TCS collected from you during the year will be shown here along with the details of party who deducted / collected TDS/TCS.

  • Information relating to specified financial transaction.

To keep a watch on high value transactions undertaken by the taxpayer, the Income-tax Law has framed the concept of statement of financial transaction or reportable account (previously called as ‘Annual Information Return (AIR)’. On the basis of the information provided by certain prescribed entities in statement of financial transaction or reportable account, the Income tax Department keeps a track of specified financial transactions carried on by a person during the year.


The revised Form 26AS will show the specified financial transactions which have been undertaken from June 1, 2020. However, these transactions will be shown only if they cross the specified limit in a financial year.


List of specified financial transactions that will be shown in Form 26 AS.


Cash transactions

  1. Payment made in cash for purchase of bank drafts or pay orders or banker's cheque of an amount aggregating to Rs. 10 lakh or more in a financial year.

  2. Payments made in cash aggregating to Rs. 10 lakh or more during the financial year for purchase of pre-paid instruments issued by Reserve Bank of India.

  3. Cash deposits or cash withdrawals (including through bearer's cheque) aggregating to Rs. 50 lakh or more in a financial year, in or from one or more current account of a person.

  4. Receipt of cash payment exceeding Rs. 2 lakh for sale, by any person, of goods or services of any nature.

Credit Cards payments


Payments made by any person of an amount aggregating to

(i) Rs. 1 lakh or more in cash; or

(ii) Rs. 10 lakh or more by any other mode,


against bills raised in respect of one or more credit cards issued to that person, in a financial year.


Investments transactions

  1. One or more time deposits (other than a time deposit made through renewal of another time deposit) of a person aggregating to Rs. 10 lakh or more in a financial year of a person.

  2. Receipt from any person of an amount aggregating to Rs. 10 lakh or more in a financial year for acquiring bonds or debentures issued by the company or institution (other than the amount received on account of renewal of the bond or debenture issued by that company).

  3. Receipt from any person of an amount aggregating to Rs. 10 lakh or more in a financial year for acquiring shares (including share application money) issued by the company.

  4. Buy back of shares from any person (other than the shares bought in the open market) for an amount or value aggregating to Rs. 10 lakh or more in a financial year

  5. Receipt from any person of an amount aggregating to Rs. 10 lakh or more in a financial year for acquiring units of one or more schemes of a Mutual Fund (other than the amount received on account of transfer from one scheme to another scheme of that Mutual Fund).

  6. Purchase or sale by any person of immovable property for an amount of Rs. 10 lakh or more or valued by the stamp valuation authority referred to in section 50C of the Act at Rs. 30 lakh or more

Foreign Currency Transactions


Receipt from any person for sale of foreign currency including any credit of such currency to foreign exchange card or expense in such currency through a debit or credit card or through issue of travelers cheque or draft or any other instrument of an amount aggregating to Rs. 10 lakh or more during a financial year.

  • Information relating to payment of taxes

Details of taxes, if any, such as advance tax, self assessment tax paid by you in the previous year will be reflected in your 26 AS which will be auto populated in your new form 26 AS.

  • Information related to income tax demand and refund

If any demand has been raised by the authority against your PAN for any assessment year or any refund has been initiated and paid to you for any of the assessment year will be shown in your new Form 26 AS.

  • Information relating to pending and completed proceedings

The revised Form 26AS will show if there are any pending proceedings that are on-going with the income tax department or if the proceedings are completed in the relevant previous year. However, what additional details regarding the proceedings will be shown in the Form 26AS is not yet confirmed.