oppn parties The Scope Of Form 26AS To Be Widened

News Snippets

  • Government data placed in Parliament shows a sharp decline in job creation under its flagship employment generation schemes
  • The government is working to amend the Aadhar Act to make it possible for the Aadhar to be linked with the Voter's ID. Election Commission will simultaneously be empowered to link the two
  • Tapas Pal, former TMC MP, dies of cardiac arrest in Mumbai. He was questioned for his alleged involvement in the Rose Valley scam and gained notoriety for his rape remark in 2014.
  • Bypoll to panchayats in J&K, scheduled for March in eight phases, postponed due to security concerns.
  • Supreme Court says that overhead power transmission lines going through the Desert National Park in Jaisalmer in Rajasthan must go underground to save the Great Indian Bustard and the Lesser Florican
  • Pakistan not placed in FAFT blacklist but kept on the grey list with warning
  • The government is expected to announce duty cuts and other measures to combat business disruption due to coronavirus outbreak in China
  • South-East Asia loses its charm as a tourist destination after the coronavirus outbreak in China, airfares dip to new lows
  • DMK leader RS Bharathi says media is running like the red light area in Mumbai
  • A Delhi court issues fresh warrants for the hanging of the Nirbhaya convicts. Fixes the date for March 3
  • Supreme Court appoints a mediation team to ask Shaheen Bagh protestors to avoid blocking the road and shift to another venue
  • Supreme Court says peaceful protests cannot be denied in a democracy but also says that a balance must be struck as protestors cannot be allowed to block roads
  • Telcos pay part of their dues for AGR after the bashing from the Supreme Court
  • Debbie Abrahams, a Labour MP from UK, who was critical of India's action in Kashmir, not allowed to enter India. She was deported to Dubai from the Delhi airport
  • Sidharth Shukla wins Big Boss 13
Former principal secretary to PM Modi, Nripendra Mishra, appointed to head the temple committee of the Ram Janambhoomi Teertha Kshetra Trust
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.