oppn parties The Scope Of Form 26AS To Be Widened

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  • PM Modi tells BJP workers that India is in for a long battle against the coronavirus and there is no scope to feel tired or defeated
  • PM Modi asks ministers to focus on exports and new areas and sectors
  • PM Modi asks ministers to prepare business continuity plan post the lifting of the lockdown
  • Corona cases in India cross 4000 and the death toll stands at 124
  • The government decides to double the testing of corona suspects from 10000 now to 20000 in the next three days
  • Flipkart assures employees that there will be no job or salary cuts due to the COVID-19 pandemic
  • Although it was obvious, but the government still clarifies that there is no need to switch off appliances and only lights need to be switched off on April 5 at 9pm after confusion in the minds of some people
  • PM Modi and President Trump decide "to deploy full strength of (Indo-US) partnership" to fight against COVID-19
  • 17 states have reported 1023 cases of coronavirus linked to the Tablighi Jamaat, which translates to 30% of all positive cases in India
  • The government says people should not use alcohol-based hand sanitizers before lighting diyas or candles on April 5
  • The railways say there is no certainty yet when services will resume after the lockdown and a final decision will be taken in the next few days
  • As coronavirus cases multiply in Assam, six north-east states seal their borders with the state
  • Power System Operation Corporation Ltd. (POCOSO) putting all systems and protocols in place at war-footing to ensure there is no grid failure due to reduction in demand on April 5 at 9 pm
  • Power ministry scotches rumours that the power grid might fail due to the 9-minute blackout called by PM Modi on Sunday, April 5
  • Centre asks people to wear home-made masks if it is absolutely essential for them to step out of homes
26 nurses and 3 doctors test positive for COVID-19 at Wockhardt Hospital in Mumbai, facility cordoned off, no entry or exit permitted from the hospital
oppn parties
The Scope Of Form 26AS To Be Widened

By Ashwini Agarwal
First publised on 2020-02-05 18:14:30

In a dual effort to both simplify matters for the taxpayer and plug the loss of revenue, this year’s budget has changed the way Form 26AS will report transactions. Its scope has been widened from just reporting TDS deductions and other prepaid taxes from various sources, including, but not limited to, salaries and bank fixed deposits.

The finance minister had proposed to introduce section 285BB that will make Form 26AS a comprehensive annual income statement and will include transactions such as immoveable property and shares purchased or sold, among other things. Hence, section 203AA, under which the Form 26AS is now created will be deleted.

The new Form 26AS will have information collected by the income tax department from sources such as state property registrars, stock exchanges, banks, mutual funds and EPFO. This will make easier for the department to provide the taxpayer with a more comprehensive pre-filled ITR on the one hand while on the other, it will ensure that the taxpayers report all incomes truthfully and revenue is not lost.

At present, Form 26AS contains information about TDS deducted from sources such as salary, bank fixed deposits and also the taxes collected from the taxpayer or paid by him. In effect, it is a statement of tax deducted, collected or paid. But now it will be converted to a statement of all reported transactions, whether or not it involved deduction or payment of tax. This is possible only because all financial transaction have now to be done by providing the PAN and are digitally recorded.

Although the taxpayer will have the benefit of getting a comprehensive and pre-filled ITR based on this new Form 26AS, it will the duty of the taxpayer to cross-check all information and tally with his actual transactions. In order to ensure that he or she does not file a defective return, the taxpayer will need to report any wrong information in Form 26AS and rectify the ITR accordingly.