Annual Information Statement (AIS) in Income Tax- What new changed in Form 26AS?
AIS stands for Annual Information Statement, applicable from 1st June, 2020. AIS will replace Income Tax Form 26AS. It will provide details of financial transactions of taxpayers in a comprehensive manner. Thus, it is nothing but a converged version of Form 26AS. It will give the details of all the information related to particular taxpayer, available with Income tax authorities, to taxpayer in format as prescribed by the government.
In budget 2020, it was proposed to replace Form 26AS with AIS to curb tax evasion, promote transparency and simplify tax system.
Difference between Form 26AS and AIS
- Form 26AS is an annual consolidated credit statement issued by Income tax department under section 203AA of Income Tax Act, 1961 to help taxpayers to cross verify Income earned, tax deducted and deposited.
- Through budget 2020, section 203AA replaced with section 285BB to facilitate insertion of AIS.
- In addition to details provided in Form 26AS, it would also provide details of shares, Mutual fund transactions, Capital Gains and losses, etc.
Form 26AS contained the following details:
- Details of TDS/TCS
- Details of Tax paid ( Other than TDS/TCS)
- Details of Paid refund
- Details of AIR transaction
- Details of TDS on sale of Immovable Property
- Details of Tax defaults including Processing of Defaults
However, the New AIS contains following details:
- Information related to TDS/TCS
- Information related to Specified Financial transaction
- Information related to payment of taxes
- Information related to Demand and Refund
- Information related to Pending Proceedings
- Information related to Completed Proceedings
- Any other Information in relation to rule 114-I (2)
Presently, only the transactions which require TDS or TCS are reported by the deductor and the same gets reflected in Form 26AS.
Those financial transactions on which no tax is deducted are not reported in the Form 26AS except those cases for which Form 15G or Form 15H or lower TDS certificate under section 197 are furnished.
Though specified persons require to report some high-value transactions in ‘Statement of Financial Transaction’ (SFT) to the income tax authority. However, these are not complete and only a few mandatory transactions are reported.
New Annual Information Statement (AIS) in detail:
Following picture represent full content of New Annual Information Statement-
1. Information related to TDS/TCS
- It contains Details of Tax Deducted at Source by other parties and deposited to government. It can be from multiple sources such as your salary, pension, interest income etc.
- The details include name of deductor, TAN of Deductor, transaction date, section under which TDS has been deducted, Amount paid, Tax deducted, Tax deposited, etc.
- It contains the details of Tax Collected at source by the seller from you. It includes transactions such as purchase of scrap, tendu leaves, Minerals like lignite, coal and iron ore, purchase of motor vehicle above Rs. 10 lakh, Alcoholic liquor made for human consumption, etc.
2. Information related to Specified Financial transaction
- Some Specified transactions are furnished under this. Example of such transactions are-
- Aggregate cash deposit for Rs 10 lakh or more in saving bank account.
- Purchase of bank drafts or pay orders in cash for Rs 10 lakh or more.
- Aggregate Fixed Deposits of Rs 10 lakh or more in a year.
- Purchase of any pre-paid instruments issued by RBI of Rs 10 lakh or more in a year.
- Cash deposit or withdrawal amounting Rs. 50 Lakh or more in one or more current account of a person in a year.
- Cash received for amount exceeding Rs. 2 Lakh for the sale of goods or rendering of services.
- Expenditure in foreign currency via debit card, credit card or traveller’s cheque for the amount Rs.10 Lakh or above in a year.
- Payment by credit card amounting Rs.10 Lakh or above in a year.
- Credit card bill paid in cash for Rs 1 lakh or more.
- Purchase or sale of immovable property having value of Rs. 30 Lakh or above.
- Mutual Fund Investment in a year of Rs 10 lakh or more.
- Purchase of bonds or debentures for Rs 10 lakh or more in a year.
- Purchase of shares of company for Rs 10 lakh or more.
- Share buy-back from a person amounting Rs. 10 lakhs or more.
- Cash deposit in current account above Rs 12.5 Lakh or in any bank account more than Rs. 2.5 Lakh after Note-Ban i.e. period from 9th Nov, 2016 to 30th Dec, 2016.
3. Information related to payment of taxes
It shows details of Tax paid other than TDS or TCS. It includes taxes paid by the individual such as Advance tax, any self-assessment tax. It also contains the Income Tax challan details.
4. Information related to Demand and Refund
It require the details of tax refund paid or any amount demanded by Income tax department and includes interest.
5. Information related to Pending/ Completed Proceedings
It requires details to be reported regarding status of any proceedings under Income tax Act and its related information.
6. Any other Information in relation to rule 114-I (2)
- The rule authorize Principal director general of Income tax or the director general of Income tax or any person authorized by him to upload the information received from any officer, authority or any body performing any function.
- It also includes information received under an agreement referred in section 90 or 90A of Income tax act (Double taxation relief/ Foreign tax credit).
- It further includes any information which is in the nature of income to the department.
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The author of the above article is CA Rahul Gaur.
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