Income Tax Return Filing: Filing ITR? Make sure to check your latest Form 26AS first — here’s why

 

Income Tax Return Filing: Filing ITR? Make sure to check your latest Form 26AS first — here’s why



Form 26AS (Annual Tax Statement) is an essential document for taxpayers containing details of all the taxes tagged against a taxpayer’s PAN and serves as an important reference while filing income tax returns (ITR). To usher in enhanced transparency between tax authorities and taxpayers, the Finance Act, 2020 introduced changes to the existing Form 26AS and mandated certain additional information to be included in the new Form 26AS.

Multiple information in respect of a taxpayer, such as sale/ purchase of immovable property, share transactions, etc., is collected by tax authorities from the annual information statements filed by intermediaries such as banks, registrar of immovable property, companies issuing shares, etc. This information is also provided to the taxpayer in Form 26AS so that it can be used for making correct disclosures in the ITR.

REVISED FORM 26AS

With effect from June 1, 2020, the Central Board of Direct Taxes (CBDT) has revised the Form 26AS to include additional information relating to Specified Financial Transactions (SFT), demands and refunds, completed and pending assessments, etc. The new form is an extension of the earlier version wherein new details will be added to the existing data fields. The ambit of information has been enlarged to cover inputs from various sources so that the taxpayers have a fair idea of the nature of their financial transactions and can refer to these details while filing their income tax return. The updated Form 26AS will consist of the below mentioned information, in addition to the details (such as PAN, address, details of TDS, details of tax collected at source, details of taxes paid during the year) which were already available:

  • Personal details such as, date of birth/ incorporation, mobile number, address, e-mail id
  • SFTs such as donations, forex transactions, acquisition of shares from companies, buy back of shares
  • Tax demands
  • Details of pending and completed assessment proceedings
  • Details of information received from foreign jurisdictions under Exchange of Information (EOI) clause of tax treaties.

The CBDT has issued a press release on July 18, 2020, stating that taxpayers will see an improved Form 26AS which would carry some additional details on taxpayers’ financial transactions as specified in the SFTs in various categories. In fact, SFTs are transactions with specified threshold under the I-T Act and include certain cash transactions, investment in time deposits, purchase of bonds, debentures, shares or mutual funds, payment of credit card bills, purchase of foreign currency, purchase/ sale of immovable property, etc. For example, if you purchased foreign exchange of Rs 10 lakh or more during the financial year, this transaction would appear in your updated Form 26AS. The press release has further clarified that the SFT details available with the tax authorities would be reported in Part E of the new Form 26AS. It would include type of transaction, name of taxpayer who submitted the SFT, date of transaction, single/joint party transaction, number of parties, amount, mode of payment and remarks, etc.

BETTER DISCLOSURE WHILE FILING ITR

A lot of information which was otherwise available with the tax authorities will now be available with taxpayers and can be referred to while filing ITR. This will ensure increased compliance and better disclosure while filing returns which would result in reduced litigation and an environment of trust between the taxpayers and the tax authorities.

This will also reduce the element of uncertainty which taxpayers had to face at the time of scrutiny of tax returns and the time spent in scrutiny proceedings. Overall this would bring in further transparency and accountability in tax administration.

The changes in Form 26AS would serve dual purpose as honest taxpayers would be enabled to file accurate ITR with the help of updated information on their financial transactions and it would discourage those who conceal information about specified financial transactions. For example, a person earning foreign income and qualifying as tax resident in India is required to file his ITR, disclosing his foreign income and assets and should therefore file his ITR appropriately by disclosing the income and assets which are required to be reported in India.

As the tax return filing deadline for FY 2019-20 approaches, taxpayers should download their latest Form 26AS, reconcile the numbers and remit taxes as due, before filing ITR.



Comments

  1. It is better to tax payers.No hidings

    ReplyDelete
    Replies
    1. गवर्नमेंट को टैक्स देते रहो ताकि वो वोटों के लिये फार्च्यूनर कार वालों और रास्ता रोकने वालों को सब्सिडी देती रहे
      मुफ्त पेंशन बांटती रहे
      सरकार सक्षम पेंशन वालों को सस्ती नौकरी भी भी दिलवा सकती है

      Delete
    2. Then what will happen to election bonds received by political parties. It is 100% game of black money encouraged by the ruling party.

      Delete
  2. I have given a proposal on Facebook that the govt. should make it mandatory that ALL financial transactions above Rs 10 must be made by POS machines and the payments must be linked to the PAN Nos. of both the parties. This will eliminate all black money and ITO can see the transactions. The ITR can then be generated automatically by the ITO and there will be no need to file ITR by individuals! Based on this ITO can raise claim for extra tax to be paid by the individual. But a good software has to be developed by the IT department. Our IT experts are competent to do this.

    ReplyDelete
    Replies
    1. Rs.10/- is too small amount. Looks there is an error.

      Delete
    2. There should be Tax on transaction. Or Tax shouldn't be more than 5 ‰

      Delete
    3. Again do demon . All currency above Rs 10.

      Delete
    4. So, what happened to Modi's tall claim that due to demonetization, black money is completely eradicated. What about the lakhs and crores of money being demanded openly by government officials as "bribe" for transactions like registration, licensing, release of goods confiscated in GST raids, bribes to avoid hefty penalties for gross violations by builders (example building over storm water drains and lake overflow channels)? Only if you make Rs.10 and above through POS will they stop all these bribes overnight? This is a totally stupid advise.

      Delete
    5. Mr Saran

      Underworld is ruling this nation
      Black money is the backbone of this economy

      Delete
    6. A real tax payer have to pay three or four times Income Tax and other Taxes on his hard earning whether as big corporate offices pays very low tax on their earnings . After got retirement from my service in the month of December'2019 when I was filling ITR 2019-20 my Income exceeded more than 50 lakhs i'e 50 lakhs and 20 thousand , for excess amount of Rs. 20 Thousand I paid Rs. 1 Lakh 20 lakhs . This is the tragedy

      Delete
    7. Your commutation, gratuity and provident funds are not taxable.

      Delete
  3. Why should not the government abolish income tax or reduce the income tax as we are already paying tax for each and every product we buy, services we take by way of gst and our union Government is earning lakhs and crores of rupees by ways of gst.


    ReplyDelete
    Replies
    1. income tax in india needs to be abolished now.

      Delete
    2. Income Tax Return is once in a year But What about GSTR Returns ? Fed up with Monthly/ Qarterly / Annual Returns and too many Compliance’s ! Only CA can do and they are now earning too much even though we have Zero Business and Returns ! That is very Cumbersome/ Tiresome / Harassing and Always chasing Deadlines instead of Focusing on Business Growth and Income !

      Delete
    3. Govt has to make this GSTR very much simple so that everybody can file it himself. No need of a CA to file it on behalf of the business man.

      Delete
    4. Ya. You are right. GSTR is very combursome and a regular botheration. Unable to focus on business. It should be made simple. Someone suggested turnover tax to replace all taxes. 0.5 % on turnover and all through banks. Simple. Efficient.
      It eliminates all unnecessary computations. Should b implemented immediately.

      Delete
  4. R m auroraji is perfectly right, but who is listening?

    ReplyDelete
  5. Yes. I agree. If it is done, everything will be transparent and nothing will miss from either side.
    L. K. Chaturvedi

    ReplyDelete
  6. Incone Tax is not to be imposed on senior citizens when it is not imposed on Govt officials ie ruling and non ruling parties. On all purchases made by common man tax in form of GST is deducted. Throughout life common man pays tax so AT AGE OF 60 AND ABOVE SENIOR CITIZENS TO BE RELAXED FROM INCOME TAX PAYMENT. I HOPE ALL I TYPED IS NOT PAYING A DEAF YEAR. FOREIGN COUNTRIES LOOK AFTER SR CITIZENS EXCEPT INDIA.

    ReplyDelete
    Replies
    1. indian govt is not fo P.M hr senior citizens welfare though PM himself is a senior citizen whose expenses are duly taken care by Govt. It is simple logic Rob Robert ( Senior Citizens) pay paul ( non senior citizens) the so called poor who has colour tv in home pay monthly 300 Rs for cable tv can spend daily 500 Rs on drinks and roam in motor cycle etc. any post here will be just dumping in deaf.

      Delete
    2. Absolutely right. SR. Citizens who depend on pensions and monthly income are at the mercy of tax payers paying honestly with minimal returns. More benefits on tax rebates to be given as they are not in a position to earn money but depend on passive income which may or may not be enough depending upon the medical conditions of the SR.citizens. Wonder who reads the responses, if not no point in debating.

      Delete
  7. I as a very senior citizen-age 91 yrs- have to suggest that you may charge advance tax for the number of you consider necessary. Filling ITR form at my age is really difficult . you may consider this.

    ReplyDelete
  8. I am a retired Scientist and I have all sources of income like Pension, interest and a job. The sum of all these incomes becomes my income and I pay tax on that. Now the money in my hand is tax paid money for me and my family. But now when I go on tbe road by car, I have to pay road tax, while in reality this road tax should be taken from those who don't pay income tax. At toll, I should just write my Income tax number and I should not be charged road tax. Similarly, in a hotel, I should not be asked to pay service tax, in cinema entertainment tax, on groceries, sales tax. My goodness, how many more taxes I have to pay from an income which is already income tax paid?
    Due to this reason, corruption is there and people go for cash dealing, saving sales tax etc.
    This is a serious problem with the honest tax payers, they are being pressurized to pay at every point. Hope someone will take care of it.

    ReplyDelete
    Replies
    1. Well said Sir, the actual purpose of tax is defeated by imposing this number of taxes , which inturn is leading culprits to find ways avoiding tax

      Delete
  9. It is said tax should be like salt in food. If it less or more food taste is spoiled. All are willing to pay tax, in fact every body should pay may be starting from ₹1 to touching millions. Systems help as in any routine activity it is the procedures that make it work and wirk honestly and efficiently. Changes in 26AS are welcome but see this is kept confidential and secured. Vested interests may harm a tax payer.

    ReplyDelete
  10. Tax should be paid by only those are benefiting from the government schemes and freebies

    ReplyDelete
  11. I have already filed income tax return and now I have got new and changed 26 AS
    What should I do now?
    How can I change filed income tax return

    ReplyDelete
    Replies
    1. If any difference then please file Revised Return as Last Date is not over

      Delete
  12. It is a good to pay taxes - I have a request Government should
    provide Monthly pensions
    to Senior Citizens at least
    Rs. 15 000/-to Rs. 20 000/-
    to meet their daily expenses
    I humbly request ourHON. PM
    to consider this and announce
    at earliest

    ReplyDelete
    Replies
    1. At least for Sr.Citizens who do not fall in Incom Tax slab intrest rates in post office savings scheme for Sr. Citizen should not be reduced. It should be minimum 12%.

      Delete
  13. It is good to pay tax but it should see those people who are not paying taxes in spite of the people who is paying taxes

    ReplyDelete
  14. Any quantum of tax will not benefit to people (honest) as most part of tax collected goes to pension to non productive political herds and by way subsidies & different schemes meant for poor which ultimately end up benefitting politicians.so there are no way out until whole dynamics is changed

    ReplyDelete
  15. Any quantum of tax will not benefit to people (honest) as most part of tax collected goes to pension to non productive political herds and by way subsidies & different schemes meant for poor which ultimately end up benefitting politicians.so there are no way out until whole dynamics is changed

    ReplyDelete
  16. Let aside all bluffy and dishomnest deals, there are scores of examples where the Doctors are demanding an additional qucickbuck (for which no bill would be provided-nor any reimbursement is possible), small businessmen , vegetables, groceries, newspapers , daily house hold items, house rent bills, car repairs, tea stalls and there are a host of the likes where fair dealings are made in Cash. How should one expect that all Financial dealings. Unified Tax structure is the need of the hour. An honest Taxpayer is burdened and heckled to pay Taxes at multiple points. Given all these may be amalgamated and concerted to bring it / them into a unified Tax regime, then one is not reqyired to pay taxes at multiple points of financuial transactions (e.g Road Tax , Entertainment Tax , CGST , SGST , Wealth Tax , Service Tax and what not). Let the respective PAN No of such Tax payers be specially marked and be rewarded aptly for honest payment of taxes.

    ReplyDelete
  17. Honest citizens always prefer to pay tax is an honest statement but they should not feel harassed or troubled by complicating the returns and compilation of tax . Tax collection at source is always the best method and the fear of tax terrorism can be avoided. The Government saves a lot and administrative costs incurred to collect the taxes and more to be after the tax evaders can be eliminated. Improve the technology and see that all transactions are subjected to tax and collected at source without any leakage through corrupt and dishonest practices. Income tax can be easily abolished by widening the GST applicability, keeping the GST rates comparatively low on all mass consumption items , enhancing the STT suitably and making it more dynamic to minimize volatility in the market, having different rates for purchases and sales thereby avoiding capital gains tax totally and plugging all possible loopholes to avoid remittances of tax collections to the Government kitty. The inequality is widening and the rich generally belongs to big farmers ,politicians,bureaucrats ,top businessmen and all sorts of tax evaders and black marketers and those having antinational interests. Bring solid administrative reforms to fix the gaps and encourage tax compliance by simplifying the whole processes .The Government would get its intended revenue without any hassles through simple and very straightforward approaches. When people are with the government, why to worry at all?

    ReplyDelete
  18. Honest citizens always prefer to pay tax is an honest statement but they should not feel harassed or troubled by complicating the returns and compilation of tax . Tax collection at source is always the best method and the fear of tax terrorism can be avoided. The Government saves a lot and administrative costs incurred to collect the taxes and more to be after the tax evaders can be eliminated. Improve the technology and see that all transactions are subjected to tax and collected at source without any leakage through corrupt and dishonest practices. Income tax can be easily abolished by widening the GST applicability, keeping the GST rates comparatively low on all mass consumption items , enhancing the STT suitably and making it more dynamic to minimize volatility in the market, having different rates for purchases and sales thereby avoiding capital gains tax totally and plugging all possible loopholes to avoid remittances of tax collections to the Government kitty. The inequality is widening and the rich generally belongs to big farmers ,politicians,bureaucrats ,top businessmen and all sorts of tax evaders and black marketers and those having antinational interests. Bring solid administrative reforms to fix the gaps and encourage tax compliance by simplifying the whole processes .The Government would get its intended revenue without any hassles through simple and very straightforward approaches. When people are with the government, why to worry at all?

    ReplyDelete
  19. I have served in Bangalore and mumbai during a certain assessment year and have filed my returns. I have received a notice for demand of tax for short payment of tax by considering the tds made only at Mumbai. In my form 26 AS the TDS made at Bangalore as well as mumbai is mentioned. How to bring this to the notice of assessing officer?

    ReplyDelete
  20. I have served in Bangalore and mumbai during a certain assessment year and have filed my returns. I have received a notice for demand of tax for short payment of tax by considering the tds made only at Mumbai. In my form 26 AS the TDS made at Bangalore as well as mumbai is mentioned. How to bring this to the notice of assessing officer?

    ReplyDelete
  21. Im deffensd personnel,and stil we are not allowed to go out side the campus due to covid pendemic to file my ITR

    ReplyDelete
  22. Compliance to the new form 26 AS in filing tax returns for the financial year 2019-20 should not be insisted and implemented immediately since honest and sincere tax payers have already filed tax returns for the financial year 2019-20 . Compelling us to file revised returns is cumbersome and tedious and hence this compliance may kindly be implemented from the next financial year 2020-21 onwards. Will the tax authorities heed to this request to mitigate the discomfort during this pandemic situation.

    ReplyDelete
  23. Post free ads in India on Click4post.com promote your business and services online in India.

    ReplyDelete
  24. I have already filed income tax return and now I have got new and changed 26 AS
    What should I do now?
    How can I change filed income tax return

    ReplyDelete
  25. Mr Sesha & Mr.H.N.Dutta had elaborately told for due consideration of Prime Minister Mr.Modi ji and will be benefited to all Senior Citizens to ease out the balance life in a peaceful manner. Other Countries are favouring all their Senior Citizens and taking care honourably and in a dignified manner. Let us follow these countries. I hope and trust that Prime Minister's Office will bring it to the notice of Honourable Prime Minister and take a lead to treat at par with the Politicians. Politicians are enjoying Tax Free Pensions for all the Three Positions getting Three Pensions and enjoying other benefits also. A Good Day will come for Senior Citizens.

    ReplyDelete
  26. You can't stop the black money but you can check it. For example one man one house of maximum 1000sq.ft and one bank account. If you find any person done over than these you punish those persons in such a way that other than those persons will think before doing this. You change the law.

    ReplyDelete
  27. Politicians, Bureaucrat, well known doctors, engineers specially govt. Engineers, police officers, and where cash transactions is flowing i.e. corporation, bank loan, hospitals, hotels , middle man in the market, well known farmers, well known lawyers should count under a scanner as they will not missed to pay actual tax. In these you should charge chatters accountants also. Scrutiny of the above individuals are compulsory

    ReplyDelete
  28. In my view, at least from the age of 70, senior citizens could be totally exempted from payment of income tax.

    ReplyDelete
  29. Senior citizen post office a/c. interest be raised to at least 10% since we are not getting any DA or any other allowances.I requesdt the PM should consider our request sympathetically.

    ReplyDelete
  30. Limit the freebies, otherwise the middle class will be victimised due to unwanted taxes and treating as black money holders.

    ReplyDelete
  31. Where to collect form no. 16a of i.t. act state government employee pensioner to submit I t return.

    ReplyDelete
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    ReplyDelete
  33. For Senior Citizens no tax return to be filed if income is only from pension. Bank interest allowed. What about other investments like dividends from MFs if investments are made only through pension. I am CG pensioner age 92. I feel all investments only from pension should also be included with bank interest so no need to file the IT return for senior citizens. M.Y. THOTE

    ReplyDelete
  34. Bad days for genuine tax payers like me and excellent days for extortionists of Maharashtra, who are not bound to pay income tax on income, earned through extortion.

    ReplyDelete
  35. Sir.
    Iam 85 year old senior citizen. My daughter in the USA is wanting to buy a flat in Mumbai worth 2.8 Cr.for her use , due to Covid pandemic she cannot travel to India, and she hold an Indian Passport. Can she send the money to my account in Mumbai and I can buy the place for this value, to my name temperately and later transfer to her name?. Kindly answer me to avoid later tax payment complication. Joy varghese.

    ReplyDelete
  36. The Central Govt. Should take a BOLD decision by waiving INCOME Tax upto a Base amount of Rs.10 lakhs. The honest employees are only paying Income Tax and other day to day taxes. What about many Politicians and well to do people, they don't pay taxes on the pre-text of exemptions on every count and they enjoy with poor tax payers money. Many Govt. Departments are still taking bribes for dealing with clearing of bills etc. The Govt. should Audit all their Departments and see that all pending Bills are cleared. Will these good things happen in the near future. Fingers crossed.

    ReplyDelete
  37. what if some entries are missed in the AS26. Can we add more entries .

    ReplyDelete
  38. Unless you deal stringently with Departmental parasites interacting with Assesses , 70+aged covid19,cancer, Heart ailments, diabetic, hypertension Ailments stored(!) in this system, ALL GOVT. & senior Officials' attempts to simplify TAX proceedings, will be refuted OR else What explains their REFUSAL and disregard to RECTIFY an order
    which apparently they have intentionally assessed wrongly by adding A Capital Gains TWICE in Cols. 7& 10 of ITR2 pertaining to an order which has been repeatedly pointed out to them, followed by Nirvana while visiting them regularly PERSONALLY.
    TIME to ACT NOW!!!

    ReplyDelete
  39. Due to Corona Pandemic I/my C.A has not filed ITR for 2019-20 & 2020-2021. Could you please suggest what is the last date filing the same. I want to file it ASAP. pl suggest.

    ReplyDelete
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