Form 26AS is a Tax credit Statement, which shows details of tax deducted, tax collected, self-assessment tax paid, advance tax paid, income tax refund received, etc. Since the 1st June scope of form, 26AS has become wide and it now becomes “Annual Information Statement“. Since enhancement, some new transaction in form 26AS is also reflecting.
On 13th August 2020, Honorable PM Modi launches the system of “Transparent Taxation”, which includes multiple reforms to improve tax compliance, faceless assessment, and ease of filing return. As part of the multiple reforms, the government also proposed to reduce the threshold of the various transactions for tax disclosure, which will be aimed to check tax evasion. Now, these transactions will disclose in form 26AS of the taxpayers and which are provided here.
New transaction in Form 26AS
New transaction in Form 26AS- From this assessment year, taxpayers will see some additional transactions in improved form 26AS. The government has introduced 12 new transactions in this list, the same are shown here-
1) Hotel Payments- Payment to hotel above Rs. 20,000.
2) Property Tax- Payment of property tax above Rs. 20,000 per annum.
3) Health Insurance Premium- Payment of Health Insurance premium above Rs. 20,000.
4) Rent- Payment of Rent above Rs. 40,000.
Also Read:- Earlier changes in Form 26AS w.e.f. 01st June 2020
5) LIC- Payment of Life Insurance premium above Rs. 50,000.
6) Electricity Consumption- Payment of electricity above Rs. 1,00,000 per annum.
7) Education/Donation- Payment of educational fees/donation above Rs. 1,00,000 per annum.
8) Purchase of Jewellery/ White Goods/painting/marble etc. above Rs. 1,00,000/-.
9) Deposit or credit in non-current accounts exceeding Rs. 25 Lakhs during the financial year.
10) Deposit or credit in the current account exceeding Rs. 50 Lakhs during the financial year.
11) Travel to foreign country or domestic business class air travel will also reflect.
12) Transaction related to Shares, Demat Account, and bank lockers will also disclose.
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Disclaimer: The information contained in the above article are solely for informational purpose after exercising due care. However, it does not constitute professional advice or a formal recommendation. The author does not own any responsibility for any loss or damage caused to any person, directly or indirectly, for any action taken on the basis of the above article.
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Compiled by- CA Chirag Agarwal (Practicing Chartered Accountants)