New Delhi: The Income Tax department has made changes in Form 26AS for the taxpayers to e-file income tax returns “quickly and correctly”. The new Form 26AS would carry some additional details on taxpayers’ financial transactions as specified in the Statement of Financial Transactions (SFTs) in various categories.
A finance ministry release on Saturday stated that the information being received by the Income Tax Department from the filers of these specified SFTs would now be shown in Part E of Form 26AS to facilitate voluntary compliance, tax accountability and ease of e-filing of returns so that the same could 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 stated.
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.
Moreover, earlier the Department used to receive information like cash deposit/withdrawal from saving bank accounts, sale/purchase of immovable property, time deposits, credit card payments, purchase of shares, debentures, foreign currency, mutual funds, buy-back of shares, cash payment for goods and services, etc. under Section 285BA of Income-tax Act, 1961 from “specified persons” like banks, mutual funds, institutions issuing bonds and registrars or sub-registrars etc., with regard to individuals having high-value financial transactions since the Financial Year 2016 onwards. Now, all such information under different SFTs will be shown in the new Form 26AS.
The Form 26AS for any taxpayer, from now onwards, will display in part E of the Form, different fields such as, type of transaction, name of SFT filer, date of transaction, single/joint party transaction, number of parties, amount, mode of payment and remarks etc. The new Form 26AS would also have information of transactions which used to be received up to Financial Year 2015-16 in the Annual Information Returns (AIR).
CBDT to launch e-campaign on Voluntary Compliance of Income Tax
In the meantime, the Central Board of Direct Taxes (CBDT) will also start an 11-day e-campaign on Voluntary Compliance of Income Tax for FY 2018-19 from July 20. The campaign that ends on July 31, would focus on the assessees/taxpayers who were either non-filers or had discrepancies/deficiency in their returns for the FY 2018-19.
“The objective of the e-campaign is to facilitate taxpayers to validate online their tax/financial transaction information available with the I-T Department, especially for the assessees for FY 2018-19 and promote voluntary compliance, so that they do not get into notice and scrutiny process etc.,” the finance ministry stated.
It is stated that data analysis has identified certain taxpayers with high value transactions who have not filed returns for AY 2019-20 (relevant to FY 2018-19). In addition to the non-filers, another set of return filers had also been identified wherein the high value transactions did not appear to be in line with their Income Tax Return.
Under the e-campaign, the taxpayers would be able to access details of their high value transaction related information on the designated portal. They would also be able to submit online response by selecting among any of these options: (i) Information is correct, (ii) Information is not fully correct, (iii) Information related to other person/year, (iv) Information is duplicate/included in other displayed information, and (v) Information is denied. There would be no need to visit any Income Tax office, as the response has to be submitted online.
It may be noted that the last date for filing as well as revising the Income Tax Return for Assessment Year 2019-20 (relevant to FY 2018-19) is July 31. “Taxpayers are requested to avail the opportunity to participate in the e-campaign for their own ease and benefit,” the ministry stated.
– globalbihari bureau