All about “New Form 26AS” which every tax payer should know about !

What is Form 26AS?

Form 26AS, popularly known as the Tax Passbook is an annual statement in which the details of tax credit against the PAN of the taxpayer are reflected. Various details like

  • TDS/TCS
  • Advance tax/Self assessment tax
  • Refund claims etc

Are generally updated in the form on a Quarterly basis, which shall help the taxpayer in filing the ITR at the end of the year.

What is new about the Form?

The scope of Form 26AS has been enlarged by Finance Act, 2020 in accordance with Rule 114-I and shall be applicable from A.Y.2020-21 (i.e., F.Y. 19-20).

(The new form was effective from 1st June’20.)

It now has a new Section E which mentions specified high-value transactions conducted by an individual during the financial year.

High valued transactions in a F.Y singly / cumulatively include:

  1. Opening FDs/TDs in a bank.(>10lacs) (excl. renewals)
  2. Purchase of pre-paid instruments issued by RBI (>10lacs)
  3. Credit card bills of over 10lac by cheque & over 1lac by cash
  4. Buying Bonds/Debentures (>10 lacs) (excl. the amount recd on renewal of the same)
  5. Investing in Mutual funds (>10lcas) (excluding the transfer between the schemes of that specific MF)
  6. Buy shares* or Buyback of shares (>10lac)
  7. Get bank drafts (>10lacs)
  8. Purchase/Sale of immovable property (>30lacs)
  9. Saving bank a/c deposits. (>10lacs)
  10. Deposit/withdrawal in cash from Current a/c ( >50lacs)
  11. Receipt/Expense in Foreign currency (>10lacs)
  12. Cash Receipt of more than 2lacs in case of sale of goods/services (for which specific reporting is not required).

*includes share application money

How does the new inclusion help the taxpayers?

  • Would help the honest taxpayers to scrutinize their financial information beforehand to ensure an error-free return.

The taxpayers shall now ensure like always that he/she files the Income-tax Return in sync with Form 26AS. In case of any discrepancy, the Dept. shall issue a notice asking for the explanation.

How to access Form 26AS?

  • Through E-filing website >>>  My account  >>>  View Form 26AS (You will be redirected to TRACES website )

Or

  • Through the Net-banking if the account is linked to the PAN.
  • The password for opening the form will be the Date of Birth of the taxpayer. (in DDMMYYYY format)

Note:

  • The Section E shall be mentioned/updated in the Form 26AS of previous years as well.

TDS Rate Chart Income Tax – FY 2020-21

Tax Deducted at Source (TDS) is a mechanism that has been introduced by the Income Tax Department. Under this, the responsible person is supposed to deduct a certain percentage of income as tax before making the payment to the receiver. The payment includes salary, commission, professional fees, interest, rent, etc.

Due to Covid-19 situation, the rates of TDS on payments made to resident Indian has been reduced by 25% for the period starting from 14th May, 2020 to 31st March, 2021. However, there shall be no reduction in rates, where tax is required to be deducted or collected at higher rate due to non-furnishing of PAN/Aadhaar.

Now, let’s have a look at the TDS/TCS Rates applicable for financial year 2020-21 as per Press Release issued by Ministry of Finance dated 13th May, 2020: Read More