The Income Tax Department will now provide full details of taxpayer financial transactions, such as sending money overseas, buying and receiving dividends on mutual funds, and other transactions. off-market declared by custodians in Form 26AS, in order to prevent deletion of information by taxpayers.
One of the most important tax forms for any taxpayer is the 26AS form, also known as the tax credit statement. It accurately reflects the amount of tax you paid to the IRS, either directly or through other taxpayers.
What is the 26AS form?
Form 26AS is a consolidated annual tax return that includes information on taxes withheld at source, taxes collected at source, withholding tax paid by the assessor and self-assessment tax. This data relates to a permanent account number (PAN).
The Annual Information Statement, also known as Form 26AS, will now include the following eight new features:
- Information on foreign remittances reported on Form 15CC
- Details on TDS on Salary in Appendix II of the latest 24Q TDS Statement
- Information from the ITRs of other taxpayers
- Interest earned on the refund of income tax from a previous fiscal year
- PAN information in Form 61 / 61A, which indicates that if a taxpayer receives a PAN after submitting Form 61, it should be entered in Form 26AS.
- Custodian / Registrar and Transfer Agent (RTA) declared for off-market transactions, which refer to transactions that are not settled by the clearinghouse of an exchange.
- RTA has disclosed information about dividends from a mutual fund.
- Information reported by RTA on mutual fund purchases.
What is included on Form 26AS?
Form 26AS would include information on the distribution of wages, any deductions to be claimed by the employee, their income from other sources and from residential property, as well as the overall tax burden.
Its format has changed since last year to include specific financial transactions from taxpayers, which will be provided in the form of a Financial Transaction Statement (SFT).
The buying and selling of stocks, real estate and other financial instruments, as well as cash payments for bank drafts, prepaid instruments issued by the Reserve Bank of India (such as mobile wallets), Cash deposits during a fiscal year and the payment of credit card bills, are all examples (in cash or other ways).
Other taxpayer information, such as Aadhaar number, date of birth, cell phone number, email address and address, will be included in the new form.
Data must be submitted within three months of receipt, counting from the end of the month in which it was received. Off-market transactions will also be included in the form. The necessary custodians or registrars, as well as transfer agents, are responsible for reporting these transactions. Details on selling or buying a motor vehicle, opening a demat account with a custodian, and hotel payments, among other things, will be added to the database.
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Article first published: Thursday, October 28, 2021, 2:27 PM [IST]