InvestorQ : What is the new form 26AS and how is it beneficial?
nishi Shah made post

What is the new form 26AS and how is it beneficial?

Anushri Vasa answered.
2 years ago
The income-tax department has recently announced a revised form 26AS, which contains the details of tax deducted and collected at source, shall also include the details pertaining to share and real estate (property) transactions.

With this inclusion, the form 26AS shall be an ‘Annual Information Statement’, which apart from TCS/TDS information shall also contain comprehensive information relating to specified financial transactions, demand/ refund, payment of taxes and pending/completed proceedings undertaken by a taxpayer during a financial year. The same shall be implemented under budget 2020-21 under a new section 285BB under the Income-tax Act and shall come into force from June 1, 2020.

How is it beneficial?

The new form aims to provide much more comprehensive information regarding the taxes paid by a taxpayer, status of income tax demand/refund of the taxpayer, details of pending as well as completed income tax proceedings and details of some other specified transactions such as sale/purchase of property, sale/purchase of shares – all in a single statement.

Since all the information will be available in one place, it would make e-assessment easier as tax authorities will have all the comparable information in one place and therefore, any mismatch could be easily flagged.

This will also help taxpayers to identify and correct any incorrect information reported in form 26AS and shall ease the tax filing process as most of the information would be available in one place and shall be handy.