The last date for filing income tax return (ITR) is fast approaching, and it is important for taxpayers to check the details mentioned in Form 26AS when filing ITR. Also known as annual information statement, Form 26AS carries the details of tax deducted at source (TDS) and refunds claimed, among others, against a permanent account number (PAN).
You need to verify the details mentioned in Form 26AS with the TDS certificate you have.
The new notified Form 26AS will not only contain the above mentioned details but will also display some of the high-value transactions undertaken by a taxpayer during the financial year. These transactions are known as specified financial transactions (SFTs). Financial institutions such as banks, mutual fund houses, registrars and bond issuers are required to report transactions beyond a specified limit to the tax department.
These transactions include cash deposit to saving bank accounts, purchase of shares, debentures, mutual funds, buyback of shares worth more than ₹10 lakh on an aggregate basis during a financial year, sale or purchase of immovable property worth more than ₹30 lakh, credit card payments of ₹1 lakh or more in cash or in any mode of ₹10 lakh or more during a financial year. There are around 16 such transactions.
We tell you how to correct the wrong entry in Form 26AS.
“A taxpayer should communicate this in writing to concerned SFT reporting entities to make necessary corrections. Even if the reporting entity does not change, this can be shown as a valid explanation to the authorities in case of any query,” said Shailesh Kumar, partner, Nangia & Co LLP.
However, at times one may face problem in getting the SFT entry corrected.
“Practically most entities are not responsive to any such requests. We have faced issues with the public sector banks that have made wrong STF filing even when the assessee claims that he has never even opened an account with them. They refused to even entertain the request,” said Swar Pathak, a Ludhiana-based chartered accountant.
“In such scenarios, we advise the assessee to file their ITR even if their income is below the maximum amount not chargeable to tax limit,” added Pathak. In case the return is not filed the chances of getting an income tax notice goes up. “The other option with the taxpayers is to leave it as it and clarify it when the income tax department sends notice to them,” said Pathak.
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