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Income Tax Return Alert: The Central government has issued a fresh order and said Form 26AS will include more high-value financial transactions and additional information. As per the rules reformed by the Income Tax Department, the Form 26AS will include details of mutual fund (MF) purchases, foreign remittances, as well as information in income tax returns of other taxpayers.
It must be informed to the first-time income tax return filers that the Form 26AS is an annual consolidated tax statement that taxpayers can access from the Income Tax Department website using their Permanent Account Number (PAN). The Central Board of Direct Taxes (CBDT) has recently issued an order under Section 285BB of the I-T Act expanding the scope of information reported in new Form 26AS.
The Income Tax Department in May last year had also notified the revised Form 26AS, including information on high-value financial transactions undertaken during a financial year. With the latest order, the list of details to be available in Form 26AS has been expanded further.
The additional information recommended by the CBDT includes foreign remittance made by any person through an authorised dealer, breakup of the salary with deductions claimed by the employee, information in ITR of other taxpayers, interest on Income Tax Refund, information published in Statement of Financial Transactions.
On the other hand, the CBDT has authorized the Director General of Income-tax (Systems) to upload information in their possession, in the Annual Information Statement in Form 26AS in the electronic filing account registered by the assessee in designated portal, within three months from the end of the month in which the information is received by them.
As per the latest guidelines, the mutual fund investments exceeding Rs 10 lakh is required to be reported in Form 26AS as per the amended version from last year. In the similar manner, the dividend income has become taxable from FY 2020-21 and tax has to be deducted on it if it exceeds Rs 5,000 in a financial year. Thus, any tax deducted on dividend income in the last year must be reflected in Form 26AS.
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