In order to enhance the flow of information between taxpayers and tax authorities, the Central Board of Direct Taxes (CBDT) has launched a revised auto-generated Form 26AS namely “Annual Information Statement (AIS)” from this assessment year of 2020-2021 w.e.f. June 1. The key difference between the new and old form is that the former will also reflect the details of “specified financial transactions (SFT)” i.e. all high-value transactions of individuals, companies, partnership firms, etc. which are filed with the tax department under Section 285BA of the Income-tax Act, 1961.
- The SFTs are included in the Part E of the improved Form 26AS.
- Form 26AS is a consolidated annual tax statement that includes information on tax deducted/collected at source (TDS), advance tax, other taxes paid, refunds, and self-assessment that is available on the Income Tax website against a taxpayer’s Permanent Account Number (PAN).
- The new form will enable the taxpayer to have all important information available while preparing the tax return so that the chances of committing any error will reduce significantly.
Point to be noted:
– As per the new format of Form 26AS, the tax department will update its contents within three months of receiving the information from third parties like banks, Registrar of Properties, mutual funds, etc.
–For Knowledge: The details recorded in SFTs are provided by banks and financial institutions.
– Form 26AS earlier had an Annual Information Report (AIR) but now it has AIS.
What are SFT Transactions?
There are around 16 SFT transactions which have been introduced in Form 26AS include:
- Cash deposit to saving bank accounts, purchase of shares, debentures, mutual funds, buyback of shares worth more than RS 10 lakh on an aggregate basis during a financial year
- Sale or purchase of immovable property worth more than Rs 30 lakh.
- Credit card payments of Rs1 lakh or more in cash or in any mode of Rs 10 lakh or more during a financial year.
Background:
The Budget for 2020-21 had announced the revised Form 26AS giving a more comprehensive profile of the taxpayer going beyond the details of tax collected and deducted at source.
About Central Board of Direct Taxes (CBDT):
CBDT, a part of the Department of Revenue in the Ministry of Finance works as the policy making body for the Income Tax department.
Chairperson– Pramod Chandra Mody
Headquarter– New Delhi
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Union Finance &Corporate Affairs Minister Nirmala Sitharaman publicized necessitated relief measures for statutory and regulatory compliance matters related to Income Tax, GST, Customs & Central Excise, Corporate Affairs, Insolvency & Bankruptcy Code (IBC) Fisheries, Banking Sector and Commerce. In this regard, 3 month Extensions (From 31st March, 2020 to 30th June, 2020) on Filing financial year 2018-19 (assessment year 2019-20) return was provided.
