New Delhi: The Central Board of Direct Taxes (CBDT) has revised Form 26AS to carry additional details on the financial transactions of taxpayers from this assessment year (AY) to make the filing of income tax returns quick and correct.
According to the CBDT, the revised Form 26AS will be effective from June 1, 2020.
“The new Form 26AS is a faceless hand-holding of the taxpayers to e-file their income tax returns quickly and correctly. 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,” the Finance Ministry said in a statement on Saturday.
CBDT recently brought out the new form 26AS for ease of filing of Income Tax Returns (ITRs)by taxpayers.The new form is a faceless handholding of taxpayers,to help them with updated financial transactions,so as to facilitate voluntary compliance &easy e-filing. #FacelessIncomeTax pic.twitter.com/w0as1LxwQP
— Income Tax India (@IncomeTaxIndia) July 18, 2020
The information being received by the Income Tax Department from the filers of these specified SFTs will now be shown in Part E of Form 26AS to facilitate voluntary compliance, tax accountability and ease of e-filing of returns, the statement said.
The same can be used by the taxpayer to file her or his income tax return (ITR) by calculating the correct tax liability in a feel-good environment. This would also bring in further transparency and accountability in the tax administration, it added.
The earlier Form 26AS used to give information regarding tax deducted at source and tax collected at source relating to a PAN, besides certain additional information including details of other taxes paid, refunds and TDS defaults.
But now, it will have SFTs to help the taxpayers recall all their major financial transactions so that they have a ready reckoner to enable them while filing the ITR.