Annual Information Statement to replace Form 26AS
Now the government has introduced Rule 114-I in the Income Tax Rules, where the Form 26AS Annual Information Statement has been created, which may include multiple transactions and will not be valid for tax credit only.
Now the new Form 26AS by the government will include the following key information, which is as follows –
- Tax deducted or collected information at source.
- (New addition) Information related to specified financial transactions u / s 285BA.
- (New addition) Information related to pending proceedings.
- (New addition) Information related to the completed proceedings.
- Information related to payment of taxes.
- Information related to demand and refund.
- Any other information from any other law, agreement, act.
Implications in new Form 26AS
Now a large amount of information will be easily available with tax payers, tax practitioners and the department —
- Purchase of bonds / debentures / shares / units of mutual funds of more than Rs 10 lakhs.
- Purchase of immovable property over 30 lakh rupees.
- Cash payment in excess of 2 lakh rupees.
- Cash deposit in savings bank account of more than 10 lakh rupees
- Cash deposit or withdrawal in a bank account of more than Rs 50 lakhs.
- Time deposit of more than 10 lakh rupees.
- Credit card payment of over 1 lakh rupees in cash.
Furthermore, information related to pending and completed assessments will appear in Form 26AS.
Now apart from this, any information received from any other hand of the government, any other law or any agreement like DTAA will be reported by the income tax authority, thereby reducing corruption to a great extent.
Now in addition, the additional information sought to be displayed in Form 26AS is intended to move towards digitization and add each arm / functionality of the government. Which will reduce harassment of the taxpayer.
This will facilitate compliance for both taxpayers and tax authorities. There is a problem when the information is wrongly described in Form 26AS, the taxpayer will be sued and harassed.