Amendment in form 26AS for filing Income Tax Return
CBDT has recently made amendments in form 26AS and has expanded the details of information to be furnished. Accordingly, now more information about the tax payers would be gathered by the tax authorities which will be reflected in the form 26AS as well.
Therefore, at the time of ITR filing, it is necessary to reconcile the transactions shown in form 26AS with those shown in Income Tax Return.
This reconciliation is necessary for bothi.e. at time of filing ITR of Residents as well as time of NRI Tax return filing.
Form 26AS is an annual tax statement and record in consolidated form in which all the information related to the tax matter of the taxpayer is to be submitted. The taxpayers while filing the Income Tax Return have to provide more information in the said form for more transparency and efficiency.
The new information to be furnished includes areas like purchases made by taxpayer of mutual funds, received dividends, foreign remittances and much more.
Previously, form 26AS used to contain following information or details:
- Tax Deducted at Source (TDS) or
- Tax Collected at Source (TCS)
- Paid advance taxes
- High-value transactions done by the individual.
However, with latest amendment, the list of information or areas to be furnished has been expanded. More details are to be included in the Form 26AS which will be beneficial for the taxpayers while filing the annual Income Tax Return.
The form 26AS is considered an essential form for the taxpayers, as it helps them to verify whether the taxes collected or deducted at source on their behalf have reached the government promptly or not.
The Amendments made in Form 26AS:
The amended form 26AS required following details to be included
- Foreign remittances made by the assessee during the previous year (if any)
- Interests received on refunds in the previous financial year.
- Details regarding purchase of mutual funds during the previous year.
- Details of any dividends received during the year.
- Transactions made off-market that has been reported by the Registrar and Transfer Agent (RTA) or Depository.
- Breakup of various components in the salary that must be reported by the employer as per the Income Tax Act, 1961.
- Any other information as may be required to be furnished during ITR filing.
The necessity to receive the information regarding the foreign remittances arose in order to make the taxpayer more compliant to the Foreign Exchange Management Act (FEMA) and Income Tax Act and rules.
The changes made in the new Form 26AS are said to be very comprehensive and will not put any burden on the taxpayers who have already disclosed all such mentioned information. The industry experts believe that the new additions in the form will only help in making the Income Tax Return filing for the taxpayer much easier.
Therefore, it is advisable to make a proper analysis of form 26AS while filing the Resident’s Tax return as well as NRI Tax Return and ensure that all the transactions as has been reflected in the form 26AS has been incorporated in the ITR form in order to remove any Income Tax Notice from the tax authorities.