In a bid to prevent suppression of information by taxpayers, the Income Tax department will now provide full details of their financial transactions such as foreign remittances, purchase and receipt of dividend on mutual funds and other off-market transactions reported by depositories in Form 26AS.
This information would be auto populated in the Form 26AS when the taxpayer is filing income tax return.
The additional information prescribed by Central Board of Direct Taxes (CBDT) makes the new income tax return form heavier in content as last year it was decided that form 26AS will provide details of taxpayers’ financial transactions such as sale and purchase of stocks, real estate transactions, payment details of credit card bills etc.
In an order, the CBDT said that it is authorising the Director General of Income Tax (Systems) to upload additional information in their possession in the annual information statement in form 26AS in the electronic filing account registered by the assessee in designated portal, within three months from the end of the month in which the information is received.
The information that would uploaded include foreign remittances data reported in Form 15CC, TDS statement of the last quarter, information in ITR of other taxpayer, interest on income tax refund, information where PAN could be populated, off market transaction reported by depositories, information about dividends of mutual funds, and information about purchase of mutual funds.
It has been decided that DGIT (Systems) would specify the formats, procedures, and standards for the purpose of uploading the information in form 26AS.
The taxpayer’s tax passbook or the form 26AS contains details of taxpayer and compliance details along with other financial transactions.
From last year, its format has been changed to include specified financial transactions of taxpayers that will be presented on the form of Statement of Financial Transactions (SFTs).
These already include buying and selling of shares, real estate etc, making cash payments for purchase of bank drafts, pre-paid instruments by the Reserve Bank of India (such as mobile wallets), cash deposits in a financial year, payment of credit card bills (both cash or and other modes).
Taxpayers’ other details such as Aadhaar number, date of birth, mobile number, email ID and address is also be present in the new form.
A Finance Ministry statement had earlier said that the new Form 26AS is the faceless hand-holding of the taxpayers to e-file their income tax returns quickly and correctly.
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, it has SFTs to help the taxpayers recall all their major financial transactions so that they have a ready reckoner to enable them while filing the ITR.
The Income Tax department used to receive information like cash deposit/withdrawal from saving bank accounts, sale/purchase of immovable property, time deposits, credit card payments, purchase of shares, debentures, foreign currency, mutual funds, buy back of shares, cash payment for goods and services, etc under Section 285BA of Income-tax Act, 1961 from “specified persons” like banks, mutual funds, institutions issuing bonds and registrars or sub-registrars etc, with regard to individuals having high-value financial transactions since the Financial Year 2016 onwards.
Now, all such information under different SFTs is shown in the new Form 26AS.