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    Form 26AS: 4 new things that your tax passbook will now show

    Synopsis

    The government via a notification dated May 28, 2020, has made changes to the Form 26AS. These changes have come into effect from June 1, 2020. Here are the four new changes in Form 26AS that will appear from now onwards.

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    You can now check the status of any income tax proceedings you are involved in your Form 26AS.
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    Your tax passbook, i.e., Form 26AS, will come with a few changes this year. Along with a new format, effective from June 1, 2020, your Form 26AS will now contain information regarding tax refunds and demands (if any) against your name. Form 26AS will also have information about specified financial transactions such as stocks you have bought or sold, real estate transactions, payment details of credit card bills etc.

    These changes were notified by the government via a notification dated May 28, 2020.

    Here's a look at all the changes that have been made to the Form 26AS.

    • New format of Form 26AS
    The new format will show your Aadhaar number, date of birth, mobile number, email ID and your address.

    • Information related to specified financial transactions
    Along with the details of tax deducted from various income sources such as salary, interest etc. and deposited against your PAN during the financial year, the revised form will also have information related to specified financial transactions.

    These include buying and selling of shares, real estate etc., making cash payments for purchase of bank drafts, pre-paid instruments by Reserve Bank of India (such as mobile wallets), cash deposits in a financial year, payment of credit card bills (both cash or and other modes).

    Chartered Accountant, Naveen Wadhwa, DGM, Taxmann.com says, "The revised Form 26AS will show the specified financial transactions which have been undertaken from June 1, 2020. However, these transactions will be shown only if they cross the specified limit in a financial year. For instance, if the aggregate credit card bill paid via electronic modes (not including the cash payment) exceeds Rs 10 lakh, then payment of credit card bill will be reflected in Form 26AS. Similarly, if the mutual fund investments in a financial year exceeds Rs 10 lakh, only then such transactions will be reflected in the Form 26AS."

    List of specified financial transactions that will be shown in Form 26AS
    Cash Transactions
    Nature of Transaction Value of Transaction Reporting Person
    Cash payment for purchase of bank drafts or pay orders or banker’s cheque. If aggregate payment is Rs 10 lakh or more in a financial year. Bank or Co-op. Bank
    Cash payment for purchase of pre-paid instruments issued by the RBI If aggregate payment is Rs 10 lakh or more in a financial year Bank or Co-op. Bank
    Cash deposits in one or more current account of a person If aggregate amount is Rs 50 lakh or more in a financial year Bank or Co-op. Bank
    Cash withdrawals (including through bearer's cheque) from one or more current account of a person If aggregate amount is Rs 50 lakh or more in a financial year Bank or Co-op. Bank
    Cash deposits in one or more accounts (other than current account and time deposit) of a person If aggregate amount is Rs 10 lakh or more in a financial year Bank or Co-op. Bank, Post Master General
    Receipt of cash payment for sale, by any person, of goods or services of any nature, not being a transaction whose specific reporting is otherwise required If amount is more than Rs 2 lakh Any person who is liable for tax audit under Section 44AB

    Credit Cards
    Nature of Transaction Value of Transaction Reporting Person
    Payment in cash for one or more credit cards issued to that person If aggregate payment is Rs 1 lakh or more in a financial year Bank or Co-op. Bank or any other company or institution issuing credit card
    Payment in any mode (other than cash) for one or more credit cards issued to that person If aggregate payment is Rs 10 lakh or more in a financial year Bank or Co-op. Bank or any other company or institution issuing credit card

    Investments
    Nature of Transaction Value of Transaction Reporting Person
    One or more-time deposits (other than a time deposit made through renewal of another time deposit) of a person If aggregate amount is Rs 10 lakh or more in a financial year Bank or Co-op. bank, Post Master General, Nidhi Companies, NBFCs
    Receipt from any person for acquiring bonds or debentures issued by the company or institution (other than the amount received on account of renewal of the bond or debenture issued by that company) If aggregate amount is Rs 10 lakh or more in a financial year A company or institution issuing bonds or debentures
    Receipt from any person for acquiring shares (including share application money) issued by the company If aggregate amount is Rs 10 lakh or more in a financial year A company issuing shares
    Buy back of shares from any person (other than the shares bought in the open market) If aggregate amount is Rs 10 lakh or more in a financial year A company listed on a recognized stock exchange purchasing its own securities
    Receipt from any person for acquiring units of one or more schemes of a Mutual Fund (other than the amount received on account of transfer from one scheme to another scheme of that Mutual Fund) If aggregate amount is Rs 10 lakh or more in a financial year A trustee of a Mutual Fund or such other authorized person managing the affairs of Mutual Fund
    Purchase or sale by any person of immovable property If transaction value or valuation by Stamp Valuation Authority is Rs 30 lakh or more Inspector-General or Registrar or Sub-Registrar under the Registration Act, 1908

    Foreign Currency Transactions
    Nature of Transaction Value of Transaction Reporting Person
    Receipt from any person for sale of foreign currency including credit of such currency to foreign exchange card If aggregate amount is Rs 10 lakh or more in a financial year Authorised Dealer, Money Changer, Offshore Banking Unit, Any other person authorised to deal in foreign exchange or foreign securities
    Expense in foreign currency through a debit or credit card or through issue of Travellers Cheque or Draft or any other instrument. Aggregating to Rs 10 lakh or more in a financial year. Authorised Dealer, Money Changer, Offshore Banking Unit, Any other person authorised to deal in foreign exchange or foreign securities
    Source: Taxmann.com

    • Information related to income tax demand and refund
    Want to know if a tax refund has been paid to you for the year or if you have an outstanding tax demand against your name? The new Form 26AS will contain this information as well.

    Wadhwa says, "Earlier, this information could be checked by logging in to your account on the e-filing website of the income tax department. However, now outstanding tax demand or income tax refund will be available in the Form 26AS as well. Currently, it shows details of tax refund paid to an individual. However, it is yet to be seen if now on it will continue to show the tax refund amount that has been paid or amount that is due to the individual."

    • Information related to income tax proceedings
    You can now check the status of any income tax proceedings you are involved in your Form 26AS. Wadhwa says, "An individual can now also check the status of any income tax proceedings via Form 26AS. The revised Form 26AS will show if there are any pending proceedings that are on-going with the income tax department or if the proceedings are completed. However, it is yet to be seen what additional details regarding the proceedings will be shown in the Form 26AS."

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    6 Comments on this Story

    isha gupta17 days ago
    nothing will change in this country.. 3 crore cases pending in courts.. 1% people pay taxes.. industry and agriculture are enjoying tax relief
    Vilas Save19 days ago
    What is the remedy if errors crop up, which is generally the case ?
    Naval19 days ago
    This will stop flow of black money in the market. Doctors, Engineers, CAs, Lawyers who are accepting only cash as fees should be brought in tax net and made to pay taxes. Honest Senior citizens are still paying taxes they should be given more tax free limits in interest and dividend income.
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