New Income Tax Policy changes under New 26AS

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.

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