Income Tax Dept To Introduce Improved Form 26AS This Year

On Saturday, the income tax department said that from this assessment year, taxpayers will see an improved Form 26AS which would carry some additional details on taxpayers' financial transactions.

"From this Assessment Year, taxpayers will see an improved Form 26AS which would carry some additional details on taxpayers' financial transactions as specified in the Statement of Financial Transactions (SFTs) in various categories," the Ministry of Finance said in a statement.

"The earlier Form 26AS used to give information regarding tax deducted at source and tax collected at source relating to a PAN, besides certain additional information including details of other taxes paid, refunds and TDS defaults. But now, it will have SFTs to help the taxpayers recall all their major financial transactions so that they have a ready reckoner to enable them while filing the ITR," it added.

A similar statement was released by the Central Board of Direct Taxes (CBDT).

Form 26AS is an annual consolidated tax statement that includes details on tax deducted against a particular Permanent Account Number (PAN).

The 2020 Union Budget had introduced a new Section 285BB in the Income Tax Act to revamp Form 26AS as 'Annual Information Statement' which apart from the TDS/ TCS details, shall now contain comprehensive information relating specified financial transactions, payment of taxes, demand/ refund and pending/completed proceedings undertaken by a taxpayer in a particular financial year, details of which are mentioned in the income tax returns.

Earier CBDT had said that the revised Form 26AS is effective from 1 June 2020.