ITR Filing for AY 2020-21: Know About the New 26AS Form

At present, Form 26AS has particulars of taxes collected from you and deducted. Moreover, the details of taxes paid by you, whether it is an advance tax or self-assessment tax, are accessible to you. This helps you in validating whether your employer, bank or the payer of the tax has deposited the tax with the government. Just in case the same isn't available in the Form No. 26AS. This helps in verifying whether a specific tax has been paid or not, and also helps you discover in case your customer or client has not entered any of your invoices.

Moreover, to the above information, the tax Department will provide details of demand which is outstanding. Such information will assist you to ascertain whether the same demand is genuinely outstanding or is disputed. Just in case of a disputed demand, you'll avail the remedy of rectification of mistake or of filing of an appeal or maybe making an application for condonation of delay just in case the time available for filing the petition has already lapsed.

In addition to the demand due, the new Form also will provide details of all pending tax proceeding with the tax department. The information provided also will include particulars of transactions which are completed during the year. Such information will assist you to remain updated about the appeals etc. lying pending at various levels and also whether any proceedings are concluded ex parte without you being aware of it.

Details about your Financial Transactions

Earlier various entities like banks, listed companies, mutual funds, registrar, stock exchanges etc. are required to furnish details of separate financial transaction above certain limits entered into with them to the tax department on an annual basis. Since the information is already available with the tax department for all the taxpayers, the tax department will make these details available in your Form 26AS. The particulars which can be available to you'd be in respect of payments made to banks for getting demand drafts and pay order also as cash deposited and withdrawn beyond certain limits. For saving bank accounts and therefore the fixed/ recurring deposits made, the information is required to be submitted just in case you've got deposited over Rs 10 lakh during the year in one or more bank accounts with the same bank. For the current account, the applicable limit is higher at Rs 50 lakh.

Likewise, transactions for credit cards, foreign, exchange, purchase of shares or bonds and debentures also are reported by the particular entities with whom you've done these transactions if the accumulation of the transactions exceeds a specific limit, which is inversely specified for various transitions.

In case of sale and buy of property the registrar is required to furnish your particulars with a value just in case stamp tax value of such immovable property exceeds Rs 30 lakh, the details of seller and buyer both are provided to the Tax Department. So, the same will get reflected in your 26AS Form just in case you've got bought or sold any immovable property.

The availability of these additional details will help the taxpayers verify and initiate corrective steps just in case some of the details submitted are mistaken. An incorrect entry may appear in your 26AS Form only in case there are some errors on the part of the opposite party in preparing and submitting the same. The taxpayers needn't worry about it and instead should appreciate that additional details will make verification of those details remove any incorrect entry there.