Form 26AS
Complete Profile of Tax Payers
Form 26AS is an annual statement maintained under Rule 31AB of the Income-tax Rules disclosing the details of tax credit i.e. TDS, TCS and tax paid by the taxpayer in the other forms like advance tax, Self-assessment tax, etc. These details are disclosed in the account of taxpayer as per the Income tax Department database. Further, Section 203AA of the Income –tax Act, 1961 provides that the Director-General (DG) of Income Tax systems shall deliver a statement in Form 26AS to every person whose tax credit details disclosed and allow them to claim the tax credit as reflected in the 26AS.
In order to widen the scope of Form 26AS, has made the following changes:
a) The Finance Act, 2020 has omitted Section 203AA with effect from 01-06-2020 and new section 285 BB has been introduced from the same date.
b) The Central Board of Direct Taxes (CBDT) vide Notification dated 28-05-2020, has omitted Rule 31AB and inserted a new Rule 114-I to the Income Tax Rules,1962.
Rule 114-I provides that annual information statement in
Form 26 AS shall be uploaded by the Principal DG of Income tax or the DG of
Income tax or any person authorized by him , in the e-filling account of the
assesses
Thus any adverse action initiated or taken or found or
order passed under any law (Custom.GST, Benami Law, etc) including information
about Turnover, import, export, etc will also be put in this new form 26AS. By
this not only tax payer but also all the Income tax authorities will know and
have access to such information.
Such Information shall be uploaded within 3 months from
the end of the months in which the information is received by him. As such Form
26 AS information will not be one-time affair at year end rather it will be a
live 26AS.
New Form 26AS also include additional information such as information received under Double Taxation Avoidance Agreement or Tax Information Exchange agreement. The form has been divided into 2 parts:
· PART A-Contains Basic information of the assesses, i.e. Permanent Account Number, Aadhaar number, Name ,date of birth/Incorporation, Mobile Number, E-mail address and address
· PART B-Contain information in respect of following transactions:
Ø TDS
or TCS
Ø Payment
of taxes;
Ø Demand
and Refund
Ø Pending
proceedings
Ø Completed
proceedings which include assessment, re-assessment u/s 148, 153A,153C,
revision, appeal
Ø Received
from officer, authority or body performing any functions under any law or
information received under an agreement referred under section 90 or section
90A or information received from any other person to the extent it may be deem
fit in the interest of the revenue
Ø Specified
Financial Transactions (includes purchase/sale of goods, property, services,
work contract, investment, expenditure, taking or accepting any loan or
deposits of such value prescribed but not less than of Rs. 50000) only if:-
· amount of such transaction is in excess of the threshold prescribed section 285BA read with Rule 114
E.
· Person with whom such transactions have been
entered, he furnished a statement of financial transaction.
Form 26AS will now be a complete profile of the tax-payer
with effect from 01.06.2020 and will play a vital role in carrying out the due
diligence of the person/corporate concerned by the Bank/Financial Institutions
or any other authority or customer, buyer etc. before making crucial decision.
New Form 26AS will now be checked so as to ensure that
there are not any major issues about such person/corporate.
This will even make difficult for tax payer to hide information about any proceedings against under any law or tax demand, etc. from bank/FI etc.
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