Form 26AS; Check Latest Eight New Features Added By Income Tax Department

The Income Tax Department will now provide full details of taxpayers' financial transactions, such as foreign remittances, the purchase and receipt of dividends on mutual funds, and other off-market transactions reported by depositories in Form 26AS, in order to prevent information suppression by taxpayers.

One of the most crucial tax forms for any taxpayer is Form 26AS, also known as a Tax Credit Statement. It accurately reflects the amount of tax you have paid to the IRS, either directly or through other taxpayers.

What is form 26AS?

Form 26AS is a consolidated yearly tax statement that includes information on taxes deducted at source, taxes collected at source, advance tax paid by the assessee, and self-assessment tax. This data pertains to a Permanent Account Number (PAN).

The annual information statement, also known as Form 26AS, will now include the following eight new features:

1. Information on foreign remittances reported on Form 15CC
2. Details on TDS on salary in Annexure II of the last quarter's Form 24Q TDS Statement
3. Information from other taxpayers' ITRs
4. Interest earned on a prior financial year's income tax refund
5. PAN information in Form 61/61A, which indicates that if a taxpayer receives a PAN after submitting Form 61, it should be entered in Form 26AS.
6. Depository/Registrar and Transfer Agent (RTA) reported for Off Market Transactions, which refers to trades that are not settled through an exchange's clearing organisation.
7. RTA has disclosed dividend information for a mutual fund.
8. RTA-reported information on mutual fund purchases.

What is included in form 26AS?

Form 26AS would include information on pay break-up, any deductions to be claimed by the employee, his/her income from other sources and residential property, as well as the overall tax burden.

Its format has altered since last year to include specific financial transactions of taxpayers, which will be supplied in the form of a Statement of Financial Transactions (SFTs).

Buying and selling stocks, real estate, and other financial instruments, as well as making cash payments for bank draughts, Reserve Bank of India-issued pre-paid instruments (such as mobile wallets), cash deposits in a financial year, and payment of credit card bills, are all examples (both cash or and other modes).

Other information about taxpayers, such as Aadhaar number, date of birth, cellphone number, email address, and address, will be included in the new form.

The data must be submitted within three months of receiving it, starting from the end of the month in which it was received. Off-market transactions will also be included in the Form. The necessary depositories or registrars, as well as transfer agents, are responsible for reporting such transactions. Details on the sale or purchase of a motor vehicle, the opening of a demat account with a depository, and hotel payments, among other things, will be added to the database.