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

  • TDS Return Form 26Q: Due Dates, Applicability & Related Forms
    TDS Return Form 26Q: Due Dates, Applicability & Related Forms Form 26Q is a quarterly TDS return that must be filed by deductors when tax is deducted at source on payments made to resident individuals other than salaries. This includes deductions on professional fees, contractor payments, interest (excluding securities), dividends, commissions, and […]
  • Have You Reported Your Foreign Assets in Your Income Tax Return?
    Have You Reported Your Foreign Assets in Your Income Tax Return? In an increasingly globalized world, it’s common for Indian residents to hold assets or earn income abroad. However, what many fail to realize is that the Indian Income Tax Act mandates disclosure of foreign assets and overseas income in the Income […]
  • A Beginner’s Guide to E-Filing Income Tax Return for FY 2024-25
    A Beginner’s Guide to E-Filing Income Tax Return for FY 2024-25 Filing your Income Tax Return (ITR) is not just about fulfilling a legal formality—it’s a vital part of your financial discipline. Every individual earning income in India is required to declare their income, deductions, and taxes paid during the financial […]
  • Faking Tax Deductions? You Could Be Penalised Up To 200% Under Income Tax Rules
    Faking Tax Deductions? You Could Be Penalised Up To 200% Under Income Tax Rules New ITR-1 and ITR-4 Mandate Detailed Proof for Claims to Curb False Deductions Paying taxes accurately and on time isn’t just a legal obligation—it fuels public welfare and national development. To ensure compliance, the Income Tax Act prescribes […]
  • Aadhaar OTP a Must for PAN Registration: New Income Tax Portal Rule
    New PAN Registration Rule: Aadhaar OTP Verification Made Mandatory In a significant update, the Income Tax Department has introduced a mandatory Aadhaar-based OTP verification step for individuals registering their Permanent Account Number (PAN) on the official e-filing portal — www.incometax.gov.in. This change is designed to enhance security and ensure that only genuine users […]