The Income Tax Department said on Saturday that the improved Form 26AS will demand additional details from the assessees, such as high-value financial transactions. The new Form 26AS – applicable for the current assessment year – will facilitate voluntary compliance and the ease of online filing of income tax returns. The existing Form 26AS demanded information on tax deducted at source (TDS) and tax collected at source (TDS) relating to a PAN, as well as certain additional details such as other taxes paid, refunds and TDS defaults.
The new Form 26AS will have Statements of Financial Transactions (SFTs) in various categories to help the assessees recall all major financial transactions, which would help the assessee while filing the income tax return (ITR), according to the Central Board of Direct Taxes (CBDT), the top policymaking body of the Income Tax Department.
Form 26AS will also contain comprehensive information on specified financial transactions, payment of taxes, demand/refund and pending/completed proceedings required to be furnished in the income tax returns.
The tax department had in May notified a revised Form 26AS, asking details of tax collected or deducted at source from the assessees including information pertaining to property and share transactions.
Information received by the Income Tax Department through the statements of financial transactions of these statements will be shown in Part E of the new Form 26AS.The new Form 26AS is the “faceless hand-holding of the taxpayers to e-file their income tax returns quickly and correctly”, the taxman said on Saturday.
“This will enable taxpayers to file income tax return by calculating the correct tax liability in a feel-good environment. This will also bring in further transparency and accountability in the tax administration,” CBDT spokesperson Surabhi Ahluwalia said.
What Is Form 26AS?
Form 26AS is an important document for taxpayers, employees and freelancers alike, as it indicates the portion of TDS or tax deducted at source deducted on incoming payments, say tax experts.
For example, Form 26AS enables salaried individuals to check that their employers have deducted tax on salary. The Form 26AS can be accessed from the income tax website using the Permanent Account Number (PAN).