Budget 2020 introduced to replace Form 26AS with a new Annual Financial Statement in order to prevent tax evasion and bring clarity among taxpayers
This will include details such as:-
- Taxpayers Property
- Shares possessed
- Mutual fund transactions &
- Tax deducted at source (TDS) information.
As per Section 203AA, Form 26AS currently provides details of TDS and other prepaid taxes that are paid to the government against one’s PAN (Permanent Account Number) and it is available for verification on the website of the income tax department.
The budget for the financial year 2020-21 implemented the introduction of Section 285BB. As per the agreed contours, the idea is to include a detailed financial statement comprising of all important financial transactions conducted by an individual in a particular year, such as
- Sale or Purchase of Property &
- Sale or Purchase of Securities
to be reflected in the prepopulated ITR’s or Income tax Return.
Annual Finance Statement will also include other financial information such as
- Sale or purchase of immovable property
- Stock or shares held by Income tax authority.
Therefore, Section 203AA will be deleted and Form 26AS will be replaced by Annual Finance Statement.
The State has yet to inform the specification of this new financial statement. The proposed amendment is set to take effect from 1 June 2020.
Once this amendment is ther through there will be a big change for banks and mutuals funds as they would have to share all the details on transactions being conducted by individuals during the year related to a particular PAN no. or Aadhar NO.
Latest Updates
- What are the differences between income tax and tax deduction at source?The two phrases that Indian taxpayers encounter most frequently are income tax and tax deducted at source (TDS). Despite their apparent similarities, they are very different from one another. The primary distinction between TDS and revenue Tax is that the former is subtracted from the taxpayer’s annual return or total profit, […]
- 8 Key Points Explaining Income Tax Benefits for Senior Citizens on Interest IncomeThe Income Tax Act’s Section 80TTB describes the tax advantages available to older persons for interest income from deposits. The new Section 80TTB provision is one of the incentives expressly aimed at older citizens that were added in the 2018 Finance Budget. Under Section 80TTB, a person who is 60 years […]
- Understanding Section 43B(h) of the Income Tax Act in Ensuring Prompt Payments to MSMEsSection 43B of the Income Tax Act of 1961 would have a new clause (h) inserted by the Finance bill of 2023. The aforementioned clause, which has been implemented through micro and small businesses, would have been included as a socio-economic welfare measure to ensure on-time payments. The Act’s Section 43B […]
- Old Tax Regime: Tax Rates and Deductions Under The Old Tax RegimeIn the recently unveiled interim Budget 2024, the income tax slabs for the fiscal year 2023-24 in both the old and new tax regimes have remained unchanged. Various categories of individuals, including those below 60 years, senior citizens, and super senior citizens, encounter different tax rates within the old tax regime. […]
- CBDT Releases Income Tax Return Forms for the Assessment Year 2024-25The Income Tax Department has recently unveiled the availability of I-T return forms 2, 3, and 5 for the filing of tax returns pertaining to the assessment year 2024-25. Earlier, the notification for ITR-1, applicable to individuals with a total income of up to Rs 50 lakh, and ITR-6 for businesses, […]