The Income Tax Department has launched a revised Form 26AS or Annual Information Statement from this assessment year, which will reflect details of all high-value transactions.
Basic Facts
Form 26AS is an annual credit statement, also known as annual tax statement, which is issued by the tax department.
The Budget for 2020-21 had announced the revised Form 26AS
It displays more information about taxpayers, including some of the high-value transactions done by them during the financial year.
Older Form 26AS contained details such as tax deducted at source (TDS) and tax collected at source (TCS) against a permanent account number (PAN). The revised form will also display information about some of the financial transactions in specified financial statements (SFT) . These transactions will be displayed under the newly introduced Part E of Form 26AS.
It is expected to help reduce errors by taxpayers as the details of certain transactions above a threshold will be displayed to the taxpayer in the new form.
Taxpayers can then verify if the financial transactions done by them are in line with the income reported for the financial year by looking at the Form 26AS before filing the income tax return (ITR).
Source: The Mint and Indian Express
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