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
- Major GST Updates Effective April 2025 Onwards: Key Changes in Compliance, Registration, and ReportingMajor GST Updates Effective April 2025 Onwards: Key Changes in Compliance, Registration, and Reporting As India continues to strengthen its indirect tax framework, several important changes under the Goods and Services Tax (GST) regime have been introduced, effective from April 1, 2025, and beyond. These reforms are aimed at enhancing ease […]
- Tax Implications of ESOPs and RSUs for EmployeesTax Implications of ESOPs and RSUs for Employees Employee Stock Option Plans (ESOPs) and Restricted Stock Units (RSUs) have become increasingly popular as part of employee compensation packages, especially in multinational corporations and startups. These instruments are not just used to reward performance but are key tools in retaining talent. However, […]
- ITR Filing Deadline Extended: New Last Date is September 15ITR Filing Deadline Extended: New Last Date is September 15 The deadline for filing income tax returns for FY 2024–25 (AY 2025–26) was moved from July 31 to September 15 by the Income Tax Department on Tuesday. “Considering the time needed for system readiness and the rollout of Income Tax Return (ITR) utilities […]
- ITR Portal Registration 2025: 8 Simple Steps to Register on the Income Tax e-Filing PortalITR Portal Registration 2025: 8 Simple Steps to Register on the Income Tax e-Filing Portal As the Income Tax Return (ITR) Filing Season 2025 draws near, it’s time for taxpayers—especially first-time filers—to get ready by registering on the official Income Tax e-Filing Portal. Designed as a Mission Mode Project under the National E-Governance […]
- Why Reconciling AIS and TIS is Crucial Before Filing ITRWhy Reconciling AIS and TIS is Crucial Before Filing ITR As Income Tax Return (ITR) season kicks off, many taxpayers are discovering two critical tools on the Income Tax portal — AIS (Annual Information Statement) and TIS (Taxpayer Information Summary). If you’re still relying only on Form 26AS to prepare your […]