Income Tax Form 26AS is a tax credit statement showing details of tax deducted/ collected at source, self-assessment tax paid, advance tax paid, etc. Government of India has widen the scope of 26AS Form and has introduced new Form AIS which stands for Annual Information Statement, applicable from 1st June, 2020. AIS will replace Income Tax Form 26AS.
From this Assessment Year, taxpayers will see an improved Form 26AS which would carry some additional details on taxpayers’ financial transactions as specified in the Statement of Financial Transactions (SFTs) in various categories. AIS is a new format of form 26AS as prescribed by the department which has been discussed in detail below.
It has two parts-
Part A of Form 26AS
Earlier it include basic details such as Name, PAN and address of PAN Holder. However, from now it will also disclose Date of birth/ incorporation, mobile no., email Id and Aadhar number.
Part B of 26AS
Part B shows the nature of Information as mentioned below:
1. Information related to TDS/TCS
This section includes information related to tax deducted on incomes such as Salary, pension, rent, contract, professional fees, etc. For instance, if you are earning any income in nature of professional fees amounting to Rs. 1,00,000, then TDS deducted on this amount i.e. Rs. 10,000 (10% on 100000) will be shown here. Read more: TDS and TCS Rates Chart – Examples of how to calculate TDS for FY 2020-21
In the same way it also shows details of tax collected by seller on products such as Tendu leaves, alcoholic liquor for human consumption, scrap, motor vehicle and timber and other forest products, etc. For instance, if you buy scrap from any person worth Rs. 50,000 then you have to pay TCS worth Rs. 5000 (1% on 50000) over and above Rs. 50000 unless you give declaration that such scrap shall be used for manufacturing purpose. Such tax collected by seller shall also be shown here.
Read Also: Claim lower/nil TDS deduction- Form 15G, Form 15H and Form 13
2. Information related to specified financial transactions
Earlier there were limited transactions disclosed under Form 26AS of Income Tax. Now, the government has added 12 new transactions in the list. This section includes a list disclosures of transaction above a threshold limit which are discussed below.
Newly added Transactions
1. Payment to hotels above Rs. 20,000
2. Payment of property tax above Rs. 20,000 per annum
3. Payment of Health insurance premium above Rs. 20,000
4. Rent payment above Rs. 40,000.
5. Life Insurance Premium above Rs 50,000
6. Electricity consumption payment above Rs. 1,00,000 per annum.
7. Payment of educational fees/ donations above Rs 1 lakh per annum
8. Purchase of jewellery/ white goods/ painting/ marble etc. above Rs. 1 lakh
9. Deposits or credit in non-current account exceeding Rs. 25 lakh during the financial year.
10. Deposits or credit in Current account exceeding Rs. 50 lakh during the financial year.
11. Travel to foreign country or domestic business class air travel will also reflect here.
12. Transactions of shares, D-Mat accounts and bank lockers will also be disclosed here.
Read Also: Income Tax Rate For AY- 2020-2021/ FY- 2019-2020
Already exist Transactions
13. Any cash paid for purchase of bank draft or pay orders or banker’s cheque, if aggregate amount during a financial year is Rs. 10 lakh or more.
14. Receipt on sale of foreign currency in case amount during the financial year is Rs. 10 lakh or more.
15. Purchase of prepaid instrument issued by RBI in cash amounting to Rs. 10 lakh or more in aggregate during the financial year.
16. Cash deposit or withdrawal in one or more current account of a single person amounting to Rs. 50 lakh or more in aggregate during the financial year.
Read More: 5 Home Loan tax benefits u/s 24, 80C, 80EE, 80EEA of Income Tax Act
17. Expense in foreign currency through debit or credit card or issue of traveler’s cheque or draft or any other instrument amounting to Rs. 10 lakh in a financial year.
18. Aggregate cash deposit for Rs 10 lakh or more in saving bank account in aggregate during the financial year.
19. Aggregate Fixed Deposits of Rs 10 lakh or more in a year.
20. Purchase/ Sale of immovable property where transaction value or stamp duty valuation is Rs. 30 lakh or more.
21. Transaction provided under section 269ST which says that any amount received through mode other than account payee cheque/ draft or electronic clearing system (that is through cash) exceeding Rs. 2,00,000.
Read Also: Cash Transaction Limit in India – cash payment and cash receipt
22. Payment by credit card amounting Rs.10 Lakh or above in a year.
23. Credit card bill paid in cash for Rs 1 lakh or more.
24. Buy back of shares from any person (other than shares bought in open market) where aggregate amount during the year is Rs. 10 lakh or more.
25. Mutual Fund Investment or Purchase of bonds or debentures or shares of company for Rs 10 lakh or more in a year.
Read Also: Bank Account under Income Tax : Questions and Answers
3. Information related to payment of taxes
It shows taxes paid other than TDS/ TCS such as advance tax if liability for tax amounts to Rs. 10,000 or more (except for Senior citizen), Self-assessment tax i.e. the balance tax paid on assessed taxable income after considering TDS/TCS/ Advance tax, etc.
4. Information related to demand and refund
This section shows details of any outstanding tax demand or income tax refund as against details of tax refund to individuals earlier. For instance if income tax has been demanded by department as a result of any proceedings, then such amount will reflect here.
Read More: Annual Information Statement (AIS) in Income Tax- What new changed in Form 26AS?
5. Information related to pending/ completed proceedings
It shows details of any proceedings that is pending or has been completed under Income tax act.
6. Any other information related to 114-I (2)
Rule 114-I(2) says that the department shall upload information received from any officer, authority or any institution under any law or any information related to DTAA under section 90 or 90A of Income tax act. It shall also include such information obtained from any other person which is in the interest of revenue.
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The author of the above article is CA Rahul Gaur.
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