E-filling now easy for I-T returns, new 26AS form introduced by Income tax department

On Jul 18, 2020

New Delhi: The Income Tax Department on Saturday said that new Form 26AS would have additional details of taxpayers high-value financial transactions undertaken during a financial year and would facilitate voluntary compliance and ease of e-filing of I-T returns.

CBDT recently brought out the new form 26AS for ease of filing of Income Tax Returns(ITRs)by taxpayers.The new form is a faceless handholding of taxpayers,to help them with updated financial transactions,so as to facilitate voluntary compliance &easy e-filing. #FacelessIncomeTax pic.twitter.com/w0as1LxwQP
— Income Tax India (@IncomeTaxIndia) July 18, 2020

The new form 26AS carries additional details of taxpayers' financial transactions as specified in the Statement of Financial Transactions(SFTs) in various categories.#FacelessIncomeTax
— Income Tax India (@IncomeTaxIndia) July 18, 2020

Form 26AS is an annual consolidated tax statement that can be accessed from the income-tax website by taxpayers using their Permanent Account Number (PAN). 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, the new form will have Statement of Financial Transactions (SFTs) in various categories to help taxpayers recall all their major financial transactions so that they have a ready reckoner while filing the ITR, the Central Board of Direct Taxes (CBDT) said in a statement.

The information being received by the Department from the SFT filers including date & type of transaction eg single/ joint party transaction,number of parties, amount & mode of payment etc is now being shown in part E of the new form 26AS.#FacelessIncomeTax
— Income Tax India (@IncomeTaxIndia) July 18, 2020

In May, CBDT had notified the revised Form 26AS, containing details of tax collected or deducted at source, which will now include information pertaining to property and share transactions.

With this, Form 26AS has been revamped to an ”Annual Information Statement” which apart from the TDS/ TCS details, shall now contain comprehensive information relating to specified financial transactions, payment of taxes, demand/ refund and pending/completed proceedings undertaken by a taxpayer in a particular financial year that has to be mentioned in the income tax returns.

CBDT said the Department used to receive information like cash deposit/withdrawal from saving bank accounts, sale/purchase of immovable property, credit card payments, purchase of shares, debentures, foreign currency, mutual funds, cash payment for goods and services, etc. from “specified persons” like banks, mutual funds, institutions issuing bonds and registrars since Financial Year 2016 onwards.

Now, all such information under different SFTs will be shown in the new Form 26AS, it added.