Income tax – Form 26AS To Be Replaced With Annual Finance Statement

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:-

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

  • How to Calculate and Pay Advance Tax for Corporates
    How to Calculate and Pay Advance Tax for Corporates Advance tax, often referred to as “pay-as-you-earn,” is the income tax payable in advance as per the provisions of the Income Tax Act. Sections 208 and 209 of the Income Tax Act outline the rules and computation methods for advance tax. This guide provides […]
  • Highlights and Updates from the 55th GST Council Meeting
    Highlights and Updates from the 55th GST Council Meeting The 55th GST Council meeting, held on December 21, 2024, in Jaisalmer, Rajasthan, was chaired by the Union Finance Minister. Attendees included the Union Minister of State for Finance, several Chief and Deputy Chief Ministers, State Finance Ministers, and senior officers from […]
  • A Guide to Belated Returns, Revised Returns, and ITR-U
    A Guide to Belated Returns, Revised Returns, and ITR-U Filing Income Tax Returns (ITR) is a crucial responsibility for taxpayers in India. As the year nears its end, December 31, 2024, is the final date to submit belated and revised returns for the financial year 2023-24 (assessment year 2024-25). This guide […]
  • Bombay High Court Directs CBDT to Extend E-Filing Deadline; Upholds Section 87A Rebate as a Fundamental Right
    Bombay High Court Directs CBDT to Extend E-Filing Deadline; Upholds Section 87A Rebate as a Fundamental Right In a landmark decision, the Bombay High Court has directed the Central Board of Direct Taxes (CBDT) to extend the deadline for filing income tax returns (ITRs) from December 31, 2024, to January 15, 2025. This decision comes […]
  • Mandatory Multi-Factor Authentication for E-Way Bill and E-Invoice Generation from April 2025
    Mandatory Multi-Factor Authentication for E-Way Bill and E-Invoice Generation from April 2025 Starting April 1, 2025, the use of Multi-Factor Authentication (MFA) will become mandatory for all GST-registered taxpayers accessing the updated E-Way Bill and E-Invoice systems. This initiative, as announced in an advisory on the GST portal, aims to bolster […]