On 18th of July, 2020, CBDT issued a press release on new form 26AS. Now, Form 26AS will not only for TDS, TCS or other taxes paid but will also show high value transactions of taxpayers.
First, we will discuss about Annual Information return for background of new form 26AS.
ANNUAL INFORMATION RETURN
An Annual Information Return is a format for filing an additional return with the Income Tax Department. The Annual Information Return (AIR) discloses high-value financial transactions carried out by assesses during the financial year. Annual Information Return (AIR) is required to be furnished under section 285BA of the Income-tax Act, 1961 by ‘specified persons’ in respect of ‘specified transactions’ registered or recorded by them during the financial year. The ‘specified persons’ and the ‘specified transactions’ are listed in Rule 114E of the Income-tax Rules, 1962.
Who should file Annual Information Return (AIR)?
Under section 285BA of the Income Tax Act, 1961, the specified persons are required to record and report high-value financial transactions of individuals. The specified persons include individuals and taxpayers undertaking the specified financial transactions, banks, mutual funds, institutions issuing bonds, and registrars, or sub-registrars.
TRANSACTIONS TO BE REPORTED IN AIR
| S. N. | Nature and value of transactions | Class of person (reporting person) |
| 1 | a) Purchasing of bank drafts/pay orders/banker’s cheques of an amount aggregating to Rs. 10 lakh or more in a financial year
b) Purchasing of pre-paid instruments issued by RBI in cash aggregating to Rs. 10 lakh or more during the financial year
c) Cash deposit/cash withdrawals (including through bearer’s cheques) aggregating to Rs. 50 lakh or more in a financial year, in or from one or more current account of a person |
A bank/co-operative bank |
| 2 | Cash deposits aggregating to Rs. 10 lakh or more in a financial year, in one or more accounts (other than a current account and time deposit) of a person. | A bank/co-operative bank/Post Master General |
| 3 | One or more time deposits (other than a time deposit made through renewal of another time of deposit) of a person aggregating to Rs. 10 lakh or more in a financial year of a person. | A bank/co-operative bank/Post Master General/Nidhi/non-banking financial company |
| 4 | Payments made by any person of an amount aggregating to
· Rs. 1 lakh or more in cash; or · Rs. 10 lakh or more by any other mode, against bills raised in respect of one or more credit cards issued to that person, in a financial year |
A bank/co-operative bank/any other company or institution issuing credit card |
| 5 | Purchasing of bonds/debentures of an amount aggregating to Rs. 10 lakh or more in a financial year | A company or institution issuing bonds or debentures |
| 6 | Purchasing of shares (including share application money) issued by the company of an amount aggregating to Rs. 10 lakh or more in a financial year | A company issuing shares |
| 7 | Buy back of shares for an amount aggregating to Rs.10 lakh or more in a financial year | A company listed on a recognized stock exchange purchasing its own securities under section 68 of the Companies Act, 2013 |
| 8 | Purchasing of Mutual Fund of an amount aggregating to Rs.10 lakh or more in a financial year | A trustee of Mutual Fund or other person managing the affairs of the Mutual Fund |
| 9 | Purchasing of Foreign Currency of an amount aggregating to Rs.10 lakh or more during a financial year | Authorized person in FEMA |
| 10 | Purchase or sale by any person of immovable property for an amount of Rs. 30 lakh or more | Inspector-General/Registrar/Sub-Registrar under the Registration Act, 1908 |
| 11 | Receipt of cash payment exceeding Rs. 2 lakh for sale (other than those specified above) | Any person who is liable for audit under section 44AB |
STATEMENT OF FINANCIAL TRANSACTIONS
Statement of financial transactions return shall be furnished in Form No. 61A to the Director of Income Tax through online transmission of electronic data to a server designated for this purpose under the digital signature.
CHANGE IN FORM 26AS
Form 26AS used to give information regarding tax deducted source and tax collected at source relating to a PAN, other taxes paid, refunds and TDS defaults.
Now, all the above transactions (referred table given on the above) will be show in the new Form 26AS.
Where it will show in Form 26AS?
It will be shown in section E of Form 26AS.
How does it impact on us?
It is beneficial for all honest taxpayers. Now we have a single point source of all large transactions which will help us.
Where Can I check my Form 26AS?
You can check your Form 26AS from the Income Tax E Filing portal.
- Log in to your account through this link: Incometaxindiaefiling.gov.in
- Go to My Account and then view Form 26AS.