NEW DELHI : The Central Board of Direct Taxes (CBDT) on Saturday reminded tax payers that the new tax credit statement—form 26AS—will contain more details about various transactions made by tax payers which should not be ignored while filing tax returns.
CBDT had in May notified new rules and a new form 26AS to give tax payers a more detailed statement about the transactions they have made as part of steps to make tax return processing and assessments more effective. The changes are effective from 1 June. Capturing all high value transactions by assessees and including them in form 26AS gives the tax department an opportunity to verify those transactions.
CBDT said in a statement on Saturday that the improved form 26AS which will give a more comprehensive statement of transactions done by the tax payer will “facilitate voluntary compliance, tax accountability and ease of e-filing of returns.” Details of the transactions are reported to the tax authority by various financial and other institutions.
The details provided by the department will be useful to the taxpayer to calculate the correct tax liability, the CBDT said. “This would also bring in further transparency and accountability in the tax administration,” it said.
Form 26AS earlier used to give details of taxes deducted and collected at source (TDS and TCS) and some other details including other taxes paid and TDS defaults but the more comprehensive statement of financial transactions to be shown in the revised form will “help the taxpayers recall all their major financial transactions so that they have a ready reckoner to enable them while filing the income tax returns.” The revised version of form 26AS will also specify pending as well as completed income tax proceedings and status of income tax demand and refund.
CBDT said the revised form will display different fields such as type of transaction, name of the reporting entity, date of transaction, whether it was a single or joint party transaction, number of parties, amount, mode of payment and remarks by the department.
The tax authority has been collecting information about high value transactions in the economy including bank transactions, sale or purchase of immovable property, credit card payments, purchase of shares, debentures, foreign currency, mutual funds, buy back of shares and cash payment for goods and services. These details were collected from entities like banks, mutual funds and institutions issuing bonds. Now, all such information will be shown in the new Form 26AS.
This would help honest taxpayers with updated financial transactions while filing their returns, CBDT said. It will also discourage concealment of these transaction in the tax returns.
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