New Income Tax Policy changes under New 26AS
Page Contents
What is Form 26AS?
- A consolidated tax statement is Form 26AS. It contains information about the taxpayer’s tax deductions from various sources of income.
- Details such as tax deducted at source (TDS), tax collected at source (TCS), advance tax or self-assessment tax paid, regular tax, and refund are included, for example.
- Form 26AS can also be downloaded via the Income Tax website’s e-filing account.
- It’s essential to combine your income in Form 26AS and Form 16/16A before filing the return.
- TDS certificate is another name for Form 16/Form 16A. Form 16 shows the total amount of tax deducted from a salary, whereas Form 16A shows the total amount of TDS deducted from non-salary income.
- The employee receives Form 16 from the employer.
What is process of download Form 26AS?
- Go to Income Tax site (i.e www.incometax.gov.in) & ‘Login’ to income tax account.
- thereafter go to ‘e-file’ & click on ‘View New 26 AS Form on Tax Credit link.
- After carefully read of disclaimer, click on ‘Confirm’ button.
- Then, we will be redirected to TDS-CPC income tax website.
- thereafter we have to click on ‘Proceed’ button option.
- Next Step go to option ‘Form 26AS – View Tax Credit’.
- Then, Select AY and select ‘view type’ ( Text, HTML or PDF).
- After that you can click on ‘Download/View’.
- Now we can download & save New Form 26AS.
- Keep our documents ready for income tax credit filing
- Interest certificate from the 15H/Form 15G bank.
- Income details of Dividend.
- if you have taken home loan- Interest payment proof
- we can see Tax Saving Investments Proof.
CBDT: New Income Tax Policy changes under new 26AS For More Transparency and Compliance
- If having the Passport: Than the Passport number must be recorded if it is owned by the taxpayer. It is to be furnished both in ITR 1-Sahaj and ITR 4-Sugam. Hopefully, this will be made mandatory in other ITR forms as and when they are notified.
- In the case of Cash deposit: In the case of ITR 4-Sugam filings, it has been made mandatory to report the money deposited as cash on the bank account if the balance exceeds Rs 1 crore during the financial year.
- International travel: If you expended more than INR 2 lakh traveling abroad during the FY, you need to report the exact cost expended.
- Energy consumption: If your energy costs were more than INR 1 lakh in total throughout the year, you need to report the actual amount.
- Investment details: details of the investment eligible for deduction under Chapter VIA with details of the capital invested during the period from 1 April 2020 to 30 June 2020.
- The last date for filing tax returns is July 31 for each assessment year, but this year due to the Covid-19 pandemic the ITR filing deadline has been expanded to November 30, 2020.
- Income tax deductions and exemptions that can be sought under the current tax law for FY 2020-21 (AY 2021-22):
- The withdrawal of an employee from the Employees’ Provident Fund (EPF) is not taxed after 5 years of sustained service.
- Withdrawal from the National Pension Scheme (NPS) at maturity or discontinuance, up to 40% of the money raised on such withdrawal remains tax-free for all.
- In the event of a partial withdrawal from the NPS, up to 25% of the contributions made by individuals will be tax-free. Business owners’ contribution to NPS up to 10% of their basic salary and allowances persist tax-free.
- Pursuant to Section 10(10D) of the Income Tax Act, the balance of the insurance and bonus paid on maturity or surrender of the life insurance scheme is tax-free. Revenue on maturity continues to be excluded under Section 10(10D) even under the current system.
- The maturity number, including the interest charged to Sukanya Samriddhi Yojana, does not incur any tax.
- Conveyance reimbursement given to cover the cost of transport incurred in the execution of the duties of the office and any compensation provided to the employee to cover the cost of traveling on tour or move (including relocation) is tax-free.
- Interest received from the post office savings account balance to 3.500 per individual per year will remain tax-free.
- Any scholarship given to cover the cost of education is excluded from tax under Section 10(16) of the Income Tax Act. Compensation earned from the employer up to 20 lakh after five years of continuous service.
- Leave the encashment earned at the time of resignation or retirement up to 3 lakh.
- Form 26AS will now be the full profile of the taxpayer w.e.f. 01.06.2020, CBDT empty Notification dated 28 May 2020 as amended Form 26AS in Sec 285BB w.e.f. 01.06.2020.
- Honorable PM Narender Modi announced a landmark shift in income tax management to put things easy, pain-free & transparent.
- Main take-feature in amended Form 26AS is With the launch of Transparent Taxation
- In this form, 26AS will also be posted details about income tax demand, refund, pending proceedings, and completed proceedings which may include assessment, reassessment under section 148,153A 153C, revision, and appeal.
- Data on income tax claim, refund, delayed hearings, and completed proceedings which may include assessment, reassessment pursuant to section 148,153A 153C, revision,
- Appeal will also be shared in this form 26AS.
Selected financial Transactions
- New form 26AS will also provide the “selected monetary Transactions” information which includes:
- Buy / sale of goods or real estate transactions, delivering of services
- Transactions made by way of an expenditure or expense.
- Receiving or approving any loan or deposit of the amount specified but not less than Rs 50,000.
- Transactions under contractual works,
- Demand & Refund under the income tax act
- Pending and completed proceedings which may include assessment, re-evaluation under section 148,153A 153C, revision, appea
- New form 26AS will also provide details on “Specified financial transactions” that include transactions for the purchase/sale of goods, properties, services, works contracts, investments, expenditures, receipt or approval of any loan or deposit of the value that may be approved but not less than Rs 50,000.
- FM also suggested steps to ensure full compatibility by extending the scope of monitoring and reporting on subsequent transactions in New Form 26AS:
- Details on this Form 26AS at year-end will not be a one-time affair. This will be a live 26AS, as this will be updated regularly within 3 months from the end of the month that such information is gathered.
- For that specific year Form 26AS will now be a full taxpayer profile as opposed to the previous form 26AS, which only provided taxpayer information via TDS / TCS or self-assessment. This form will also have the e-mail, mobile no, and Aadhar no. of the taxpayer.
- An enabling provision has also been notified authorizing the CBDT to authorize DG Systems or any other officer to upload information received from any other officer, the authority under any law, in this form.
- Any negative action initiated or found or order carried under any other legislation such as custom, GST, Benami Law, etc. as well as data on turnover, import, export, etc.
- Above proposed details will also be placed in this form 26AS, so that taxpayer & tax authorities will understand and have access to the complete data basis.
- This 26AS form will provide information obtained from any other nation by the Tax Deptt under the agreement/exchange of taxpayers due to income data outside India.
- Implication of this new form 26AS will be financial institutions or any other authority or customer, buyer, etc. will now ask for form 26AS while performing via research of person/corporation worried so as to ensure that there are no significant problems about such kind of corporations & related people.
- It will now make it impossible for any taxpayer to keep secrets from any bank / financial institution/authority about any proceedings against any statute or tax demand, tax disputes, etc.
- Govt has also suggested deduct TDS / collect TCS at higher rates for those who do not file TDS/TCS Returns on income tax (ITR).
- There is also a proposal for the obligatory filing of ITR by those who have their bank transactions above INR 30 lakh, all professionals, companies with revenue above INR 50 lakh, & rent payment above INR 40,000/-
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