- CBDT has issued a press release regarding the New Form 26AS to enable quick and correct filing of income tax returns by the taxpayers. From Assessment Year 2020-21, the new improved Form 26AS will carry additional details on taxpayers’ financial transactions as specified in Statement of Financial Transactions (SFTs) in various categories.
- SFTs will now be shown in Part E of Form 26AS with 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. to facilitate voluntary compliance, tax accountability and ease of e-filing of returns. This step would also bring in further transparency and accountability in the tax administration.
- SFTs would include an individuals’ high-value financial transactions 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.
- 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).
Source: Press Release dated July 18, 2020 by CBDT