What is New in Form 26AS and How it Impacts Taxpayers?
The Central Board of Direct Taxes (CBDT) recently ordered the incorporation of various new financial details in Form 26AS under the Income Tax Act 1961. The new details include purchases like mutual funds, foreign remittances, etc. Of course, there’s much more to the new details to be entered. While we enlist the new details to be incorporated, we also look at what it means for taxpayers, or in other words, how will it impact taxpayers?
Form 26AS, as we all know, is a consolidated annual tax statement that comprises tax-related information of a particular taxpayer. Earlier, the form used to reflect the tax collected at source, TDS, high-value transaction information, advanced tax payment, refunds, etc. However, the list of details has now turned longer. The new amendments include,
- Foreign remittance details
- Information of other taxpayers in the ITR
- Off-market transactions reported by Depository/Registrar and Transfer Agent (RTA)
- Details concerning mutual fund purchases and dividends received
- Salary breakup of various components to be reported by the employers
- Interest on refunds of the previous year
For taxpayers, the inclusion of foreign remittance details refers to being cautious about compliance concerning the Income Tax Act and Foreign Exchange Management Act (FEMA). As per previous amendments, details like foreign remittances and mutual fund purchases above a particular limit were to be captured if they went beyond a specific limit.
How will the New Changes Impact Taxpayers?
What do these changes mean for taxpayers, or what impact will the new Form 26AS amendments have on taxpayers? Well, these changes are good for taxpayers. That’s because they can now check the details of the Statement of Specified Financial Transactions reported by various entities.
Besides, the SFTs will help taxpayers recall the financial transactions and file ITR accordingly. Further, extending the scope of Form 26AS will simplify ITR filing as taxpayers can fetch a higher number of details through a single statement.
Additionally, the new Form 26AS will also include details of outstanding demands. It will help taxpayers check if a particular demand is really outstanding or disputed. In the case of the latter, the tax can rectify the mistake or file an application for condonation of delay if the due date has already passed.
The more comprehensive nature of Form 26AS refers to no extra burden for taxpayers who have disclosed all the required details. Need assistance on Form 26AS? Talk to ANGCA’s tax consultants and experts at +91 77220 63311.