Recently, the Income Tax Department introduced some key changes in Form 26AS . What used to be a simple tax credit statement available to every taxpayer is now a complete blueprint of your high-value financial transactions. Let’s see what all these changes are .
What is the Form 26 AS?
This is a statement from the tax department which mentions the tax deducted on behalf of a taxpayer. It also mentions income for which an individual might have sought tax exemption during the year. All taxpayers are given a Form 26AS.
What is added from this year ?
From this year, the Form 26AS has a new Section E which mentions specified high-value transactions conducted by an individual during the financial year. These transactions include:
Open FDs of more than Rs 10 lakh.
Pay credit card bill of more than Rs 10 lakh by cheque and more than Rs 1 lakh by cash.
Buy bonds of more than Rs 10 lakh.
Buy mutual funds of more than Rs 10 lakh.
Buy shares of more than Rs 10 lakh.
Offer shares for buyback of more than Rs 10 lakh.
Buy foreign exchange of more than Rs 10 lakh.
Buy Property worth more than Rs 30 lakh.
Get bank drafts made of more than Rs 10 lakh with cash.
Deposit more than Rs 10 lakh in cash in savings bank account.
Deposit or withdraw more than Rs 10 lakh in cash from current account.
Please note that these are cumulative amounts. You could be doing separate transactions, but the total amount for the financial year will be taken into account.
E.g. If you have SIPs of Rs 20,000 in five different funds, the entire Rs 12 lakh invested in a year will get reported.
Where can you get it ?
You can log in to your tax filing account and view it. You can also access it through your Netbanking account if the account is linked to your PAN.
What are the implications?
- The aim of income tax department is to match the consumption & investment patterns with the returns filed by the taxpayer .
- The taxpayer now can view the information in a consolidated manner which helps in filing the returns in error free manner and to avoid further questions from income tax department.
- Honest tax payers need not to worry now .
And lastly , since it carries lot of financial information , suggest not to share it with unknown person .