Under The Finance Act 2020, i.e. in Budget 2020 it has been announced that New Section 285BB will be incorporated in the Income Tax Act so as to facilitate more information in Form 26AS pursuant to this previous section 203AA shall be omitted/deleted from the Act.
It was announced that under this section various annual financial transaction would be incorporated and Form 26AS would be including more information regarding annual financial transactions of assesse to facilitate assesse to file the income tax return including all the information that could be missed.
Now through Notification No. 30/2020/F. No. 370142/20/2020-TPL dated 28th May, 2020 Central Board of Direct Taxes (Government) has notified this section and Rule 114-I for New Form 26AS which is Names as Annual Information Statement (Previously known as Annual Tax Statement).
This Annual Information Statement is divided into two parts first Part A contained the basic information of the assesse with following particulars: –
| Particulars | Comparing with Old Form 26AS |
| Permanent Account Number | Same as in Old Form 26AS |
| Aadhaar Number | New Form 26AS shall include Aadhaar Number |
| Name | Same as in Old Form 26AS |
| Date of Birth/Incorporation | Same as in Old Form 26AS |
| Mobile Number | New Form 26AS shall include Mobile Number |
| Email Address | New Form 26AS shall include Email Address |
| Address | Same as in Old Form 26AS |
Above information shall be incorporated in Part A of the Annual Information Statement (New Form 26AS), Part B of this form shall contain the financial transaction information of the assesse which are as follows: –
| Nature of Information | Comparing with Old Form 26AS |
| Information relating to tax deducted or collected at source | Same as in Old Form 26AS |
| Information relating to specified financial transaction | More Comprehensive information will be provided which is included in Annual Information Statement/Report |
| Information relating to payment of taxes | Same as in Old Form 26AS |
| Information relating to demand and refund | Information related to Income Tax Demand shall be additionally provided else same as Old Form 26AS |
| Information relating to pending proceedings | Information for Pending Proceedings will be provided by the Income Tax Department which was not in the Old Form 26AS |
| Information relating to completed proceedings | Information for Completed Proceedings will be provided by the Income Tax Department which was not in the Old Form 26AS |
| Any other information in relation to sub-rule (2) of rule 114-I | Comprehensive information as mentioned Rule shall be provided under New Form 26AS |
Note:- New Information is highlighted in the table above
How it is beneficial for Assesse/Tax Preparer: –
It has been Observed while filling income tax return there are various transaction which were not reported by the Assesse by mistake or he has forgot to include the same while computing the income, resulting to it the Notice from Income Tax Department is being served for not including such transaction in the Return as department only could have the Annual Information Report (AIR) now if the information is reflecting in the statement then assesse have to include the information in the Income Tax Return which reduces the chance of assessment.
Further there is a loop hole under this as if by mistake there are certain information which is not reported in this statement by the Specified persons such as government agencies, Banks etc then the information will not reflect in this statement through which the assesse might not include the information in Income Tax Return which the assesse do not want to pay tax. (The Probability of this is low as the government has strict mechanism on this).
Our Opinion on this Amendment: –
As per our Opinion it is relevant for the assesse transacting more in shares/Mutual Funds and dealing in Properties, as their transactions are necessary to be tracked and this amendment will definitely ease out tracking the information of these assesses further for income Tax Demand and Assessment proceedings it is relevant for the assesse to know whether the assessment has been completed or is still pending so the information is there in the New Form 26AS about Pending/Completed assessment and Demand Raised by department.
Also it will come to know by the assesse that what government knows and what not, so he will file income tax return appropriately. But be wise state your true income in the return to be on safer side because there are various other options available with the government to get your correct income.
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Disclaimer: – The information compiled are my personal observation and Interpretation of the notification issued by Central Board of Direct Taxes (CBDT), further information is updated till the date of Publish of this document i.e. on 29th May, 2020, any further changes due to subsequent notifications shall accordingly be applied The Author and publisher disclaim any liability in connection with use of this information, you can find the above write up on my Linkedin Page. Neither Author nor Yes GST (collectively referred as we) assume no responsibility thereof.
Chartered Accountant and Experienced Professional with a demonstrated history of working in the financial services industry.