News | Tax

New Form 26AS will help file returns accurately, handhold taxpayers

From this assessment year, taxpayers will see an improved Form 26AS carrying some additional details on taxpayers' financial transactions as specified in the statement of financial transactions (SFTs) in various categories, which will now be shown in Part E of Form 26AS to facilitate voluntary compliance, tax accountability and ease of e-filing of returns, writes The Economic Times.
 
Taxpayers will be able to file their income tax returns electronically, with faceless hand-holding through the new Form 26AS, which will carry additional details on taxpayers’ financial transactions.
 
The improved Form 26AS will specify all financial transactions in the Statement of Financial transactions (SFTs) in Part E of the new form that will be implemented from assessment year 2020-21, which is the ongoing financial year. 
 
The new form will facilitate voluntary compliance, tax accountability and ease of e-filing of returns for taxpayers, the Central Board of Direct Taxes said in a statement Saturday.
 
The earlier Form 26AS used to give information regarding tax deducted at source (TDS) and tax collected at source relating to a PAN, besides certain additional information including details of other taxes paid, refunds and TDS defaults. 
 
The 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 from FY 2015-16 onwards.
 
This will now be available under different SFTs in the new Form 26AS. It will be displayed as type of transaction, name of SFT filer, date of transaction, single/joint party transaction, number of parties, amount, mode of payment and remarks. 
 
The government is putting all its effort to make the economy transparent and to curb all the illegitimate financial tractions, experts said.

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