Why You Need To Assess Your New Form 26AS Before Filing Tax Return?

Form 26AS is a consolidated tax statement that shows the tax deducted for a taxpayer. Additionally, it also carries information on the income stream for which the taxpayer might have sought tax exemption in the concerned financial year. The tax filing account of the individual provides easy access to such a statement.

Why You Need To Assess Your New Form 26AS Before Filing Tax Return?

And it plays an important reference point when you take on to filing your tax return. Further to render the process more transparent, form 26AS has been revamped to include additional information.

The New Revised Form 26 AS

In the new form that is the extension of the earlier version which comes into effect from June 1,2020, as part of the new Section E in the form, there are included SFT or specified financial transasctions which are of high value nature.

1. FDs opened of over Rs. 10 lakh
2. Credit card bill of over Rs. 10 lakh by cheque and more than Rs. 1 lakh by cash
3. Mutual funds, shares or bonds bought of over Rs. 10 lakh
4. Offer share for buyback worth over Rs. 10 lakh
5. Buy forex of over Rs. 10 lakh
6. Buy property worth over Rs. 30 lakh
7. Deposit or withdraw cash from current account in excess of Rs. 10 lakh
8. Deposit over Rs. 10 lakh in cash in savings account
9. Bank drafts made using cash worth over Rs. 10 lakh
10. Purchase or sale of immovable property

In addition there will be information on refunds, demands, completed as well as pending assessments. Also, information from various sources has been assimilated in the form. Also, new form 26 AS will bear information received from foreign jurisdictions under Exchange of Information (EOI) clause of tax treaties.

For the ease, the transaction will also be classified, transaction date, single or joint party transaction, payment mode, amount, remarks etc. will be listed.

New 26AS to facilitate improved tax filing with more disclosures

ITR should hence be filed considering the new Form 26 AS being laced with more disclosures and hence ushering in enhanced transparency between taxpayers and tax authorities. This is because the system provides you with easy access to information.

And hence with increased compliance there will be less of litigation which the taxpayer will have to face.

So, the move will serve dual purpose i.e. enable honest taxpayers to furnish accurate information and prevent those concealing on SFT to do so. Further it will provide a boost to faceless assessment drive of the Income tax department.

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