Form 26AS: 4 new things that your tax passbook will now show : 23-06-2020

Your tax passbook, i.e., Form 26AS, will come with a few changes this year. Along with a new format, effective from June 1, 2020, your Form 26AS will now contain information regarding tax refunds and demands (if any) against your name. The Form 26AS will also have information about specified financial transactions such as stocks you have bought or sold, real estate transactions, payment details of credit card bills etc.

These changes were notified by the government via a notification dated May 28, 2020.

Here’s a look at all the changes that have been made to the Form 26AS.

  • New format of Form 26AS

The new format will show your Aadhaar number, date of birth, mobile number, email ID and your address.

  • Information related to specified financial transactions

Along with the details of tax deducted from various income sources such as salary, interest etc. and deposited against your PAN during the financial year, the revised form will also have information related to specified financial transactions.

These include buying and selling of shares, real estate etc., making cash payments for purchase of bank drafts, pre-paid instruments by Reserve Bank of India (such as mobile wallets), cash deposits in a financial year, payment of credit card bills (both cash or and other modes).

Chartered Accountant, Naveen Wadhwa, DGM, Taxmann.com says, “The revised Form 26AS will show the specified financial transactions which have been undertaken from June 1, 2020. However, these transactions will be shown only if they cross the specified limit in a financial year. For instance, if the aggregate credit card bill paid via electronic modes (not including the cash payment) exceeds Rs 10 lakh, then payment of credit card bill will be reflected in Form 26AS. Similarly, if the mutual fund investments in a financial year exceeds Rs 10 lakh, only then such transactions will be reflected in the Form 26AS.”

Cash payment for purchase of bank drafts or pay orders or banker’s cheque.

 
If aggregate payment is Rs 10 lakh or more in a financial year.

 
Bank or Co-op. Bank

 
Cash payment for purchase of pre-paid instruments issued by the RBI

If aggregate payment is Rs 10 lakh or more in a financial year

 
Bank or Co-op. Bank

 
Cash deposits in one or more current account of a person

 
If aggregate amount is Rs 50 lakh or more in a financial year

 
Bank or Co-op. Bank

 
Cash withdrawals (including through bearer’s cheque) from one or more current account of a person

 
If aggregate amount is Rs 50 lakh or more in a financial year

 
Bank or Co-op. Bank

 
Cash deposits in one or more accounts (other than current account and time deposit) of a person

 
If aggregate amount is Rs 10 lakh or more in a financial year

 
Bank or Co-op. Bank, Post Master General

 
Receipt of cash payment for sale, by any person, of goods or services of any nature, not being a transaction whose specific reporting is otherwise required

 
If amount is more than Rs 2 lakh

Any person who is liable for tax audit under Section 44AB

 

Credit Cards

Nature of Transaction Value of Transaction Reporting Person
Payment in cash for one or more credit cards issued to that person

 
If aggregate payment is Rs 1 lakh or more in a financial year

 
Bank or Co-op. Bank or any other company or institution issuing credit card

 
Payment in any mode (other than cash) for one or more credit cards issued to that person

 
If aggregate payment is Rs 10 lakh or more in a financial year

 
Bank or Co-op. Bank or any other company or institution issuing credit card

Investments

Nature of Transaction Value of Transaction Reporting Person
One or more-time deposits (other than a time deposit made through renewal of another time deposit) of a person

 
If aggregate amount is Rs 10 lakh or more in a financial year

 
A company or institution issuing bonds or debentures

 
Receipt from any person for acquiring bonds or debentures issued by the company or institution (other than the amount received on account of renewal of the bond or debenture issued by that company)

 
If aggregate amount is Rs 10 lakh or more in a financial year

 
A company issuing shares
Receipt from any person for acquiring shares (including share application money) issued by the company

If aggregate amount is Rs 10 lakh or more in a financial year

 
A company listed on a recognized stock exchange purchasing its own securities

 
Buy back of shares from any person (other than the shares bought in the open market)

Receipt from any person for acquiring units of one or more schemes of a Mutual Fund (other than the amount received on account of transfer from one scheme to another scheme of that Mutual Fund)

 
If aggregate amount is Rs 10 lakh or more in a financial year

 
A trustee of a Mutual Fund or such other authorized person managing the affairs of Mutual Fund

Purchase or sale by any person of immovable property

 
If transaction value or valuation by Stamp Valuation Authority is Rs 30 lakh or more

 
Inspector-General or Registrar or Sub-Registrar under the Registration Act, 1908

Foreign Currency Transactions

Nature of Transaction Value of Transaction Reporting Person
Receipt from any person for sale of foreign currency including credit of such currency to foreign exchange card

 
If aggregate amount is Rs 10 lakh or more in a financial year

Authorised Dealer, Money Changer, Offshore Banking Unit, Any other person authorised to deal in foreign exchange or foreign securities

Expense in foreign currency through a debit or credit card or through issue of Travellers Cheque or Draft or any other instrument.

 
Aggregating to Rs 10 lakh or more in a financial year.

 
Authorised Dealer, Money Changer, Offshore Banking Unit, Any other person authorised to deal in foreign exchange or foreign securities

  • Information related to income tax demand and refund

Want to know if a tax refund has been paid to you for the year or if you have an outstanding tax demand against your name? The new Form 26AS will contain this information as well.

Wadhwa says, “Earlier, this information could be checked by logging in to your account on the e-filing website of the income tax department. However, now outstanding tax demand or income tax refund will be available in the Form 26AS as well. Currently, it shows details of tax refund paid to an individual. However, it is yet to be seen if now on it will continue to show the tax refund amount that has been paid or amount that is due to the individual.”

  • Information related to income tax proceedings

You can now check the status of any income tax proceedings you are involved in your Form 26AS. Wadhwa says, “An individual can now also check the status of any income tax proceedings via Form 26AS. The revised Form 26AS will show if there are any pending proceedings that are on-going with the income tax department or if the proceedings are completed. However, it is yet to be seen what additional details regarding the ..

Source : Financial Express