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Form 26AS to include more information on transactions, income: Here's what it means for taxpayers

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The income tax (I-T) department has recently notified a host of new tax-related information to be included in Form 26AS, including details of mutual fund (MF) purchases, foreign remittances, as well as information in income tax returns (ITRs) of other taxpayers.

Form 26AS to include more information on transactions, income: Here's what it means for taxpayers
The income tax (I-T) department has recently notified a host of new tax-related information to be included in Form 26AS, including details of mutual fund (MF) purchases, foreign remittances, as well as information in income tax returns (ITRs) of other taxpayers.
This order, passed by Central Board of Direct Taxes (CBDT) under Section 285BB of the I-T Act, expands the scope of information reported in new Form 26AS.
Once the changes are implemented, following information will be incorporated in the 26AS statement of the taxpayers:
  • Foreign remittance information reported in Form lSCC
  • Information in Annexure II of the 24Q TDS Statement of the last quarter
  • Information in ITR of other taxpayer
  • Interest on Income Tax Refund
  • Information in Form 61/61A where PAN could be populated
  • Off Market Transactions reported by Depository/ Registrar and Transfer Agent (RTA)
  • Information about dividend of mutual fund reported by Registrar and Transfer Agent (RTA)
  • Information about purchase of mutual fund reported by Registrar and Transfer Agent (RTA)
  • These changes are in line with the statement made by the Finance Minister Nirmala Sitharaman at the time of budget announcement in which she promoted auto population of the information so that the taxpayers can file their income tax return with more accuracy and perfection.
    Tax experts believe that this development will help the taxpayers file I-T return (ITR) correctly and assist the department in detecting discrepancies, if any, in the ITR.
    “The taxpayers and the professionals handling the filings will have most of the financial information available at one place so that they can file their tax correctly and chances of omission are reduced. Where a particular information reported doesn't belong to them, they can contact the bank or the company which has furnished the information to take corrective action, which is necessary since the I-T department matches the information furnished in ITR vis-a-vis 26AS,” said Sandeep Sehgal, Director- Tax and Regulatory, AKM Global in an exclusive interaction with CNBC-TV18.
    Seconding his views, Kapil Rana, Founder and Chairman at HostBooks Limited said that the new reporting in 26AS statement will bring in better flow of information between the taxpayers and the tax authorities.
    "With the implementation, 26AS statement will become more  useful as one will be able to import details from it to auto-populate the ITR form. Availability of all the information at one place will assist the tax authorities during e-assessment and will also appreciate the faceless assessment concept by limiting the interaction with the taxpayers as the officer compares the information available in 26AS statement with the information as furnished by the taxpayer in his/her return of income," Rana told CNBTC-TV18.
    For the uninitiated, 26AS statement can be viewed and downloaded through login to DIT portal or TRACES website or through net banking facility of banks.
    Disclaimer: 
    The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.
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