The answer of all your question about the new Form 26AS
From this year, you will see many new things in Form 26AS. Now it will also have information about tax refunds and demand (if any). Along with this, there will also be details of the shares purchased, real estate transactions, credit card bills. Come, let us know about all the things related to the new Form 26AS here.
1. What is Form 26AS?
This is your annual tax statement. It comes from the Income Tax Department. You can know about your income and tax with the help of Form 26AS. With this, your Form 26AS also mentions the name of the tax deductor/organization, the number and tax amount, etc. Form 26AS is given to all taxpayers. You can also call it a tax passbook.
2. Where can I get Form 26AS ?
You can see this by logging into your tax filing account. If your account is linked to PAN, you can also access it through your NetBanking account.
3. What is new this year ?
A new section E has been added to Form 26AS from this year. It will refer to high-value transactions done by an individual during the financial year. These transactions include:
Open FD of more than Rs. 10 Lakh
Credit card bill of more than Rs 10 lakh and a cash payment of more than Rs 1 lakh made by check
Purchase of bonds above Rs. 10 lakhs
Purchase of Mutual Funds above Rs. 10 Lakhs
Purchase of shares above Rs. 10 lakhs
Offer share for buyback of more than Rs. 10 lakhs
Purchase of foreign currency above Rs. 10 lakhs
– Purchase of property worth more than Rs. 30 lakhs
Bank draft of more than 10 lakh rupees was made by cash
– Deposit of more than Rs 10 lakh in cash in a savings bank account
Deposit and withdrawal of more than Rs 10 lakh from a current account
4. Will this amount be added per transaction or all?
This amount will be the sum of all the transactions. You can do different transactions. However, the total amount will be taken into consideration for the entire financial year. For example, if you have a SIP of Rs 10,000 in 10 different funds, then the entire amount of Rs 12 lakh invested in the year will be reported.
5. But, these transactions are not illegal …
Of course not. These are purely legal transactions and the taxpayer will not be penalized in any way. It is only that these amounts should be disclosed to the person in the tax return to be filed. Apart from this, they should clearly match the income declared in the return filed. A person who claims an income of less than Rs 5 lakh per year is bound to be unable to spend Rs 12 lakh on his credit card.
6. What will happen to intraday traders? They buy and sell securities worth Rs 1 lakh daily.
This will only apply to the purchase and sale of shares in the cash market. Intraday transactions will not be captured in Form 26AS. However, the tax department will also be aware of these deals.
7. So do taxpayers need to be afraid?
This is a new section. But, this section will also be seen in Form 26AS of previous years.
8. What does this mean for honest taxpayers?
There is no need to fear honest taxpayers. In a way, it is beneficial for them. If they do such a transaction, then it will appear in their Form 26AS. Now all they have to do is mention it in the ITR. This will ensure that they will be able to fill the returns without mistake.