Quickly Type 26AS to reveal extra particulars from high-value deposits, expenditure to investments

The brand new Type 26AS, notified by the tax division, may have info on not simply taxes paid by means of TDS and TCS but additionally on specified monetary transactions like transactions of buy/sale of products, property and providers, works contract, investments made or expenditure incurred, availing of mortgage or taking deposits.

This info will likely be over and above the knowledge on transactions disclosed beneath Annual Data Returns (AIR).

Underneath the tax regulation, banks, mutual funds, firms and registrar, and so on are purported to furnish particulars of excessive worth transactions like money deposits of Rs 10 lakh or extra in financial savings account, bank card expenditures of Rs 2 lakh or extra, buy of immovable property price Rs 30 lakh and extra, and so on by means of Annual Data Return.

The knowledge furnished in AIR is already mirrored within the type 26AS.

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The brand new 26AS will now additionally file any pending or accomplished (revenue tax) proceedings towards a taxpayer. These might be proceedings for reassessment, demand or penalty.

Moreover, the brand new 26AS may have info acquired from every other nation beneath alternate of details about an individual’s revenue or property exterior India.

Whereas all these particulars are already with the revenue tax division, it’ll now disclose the identical to taxpayers within the type 26AS, which a taxpayer can entry by logging into the e-filing web site of the revenue tax division.

The aim of sharing these particulars with the taxpayers, say specialists, is to make sure that they file appropriate tax returns.

Amit Maheshwari, Tax Accomplice, AKM International, a consulting agency, says: “The Type 26AS has been made extra complete.

It will additionally embrace details about monetary transactions carried out by the taxpayer and would additional ease the tax submitting course of as a lot of the knowledge will likely be extracted from it.”

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In line with Dhaval Jariwala, accomplice in chartered accountancy agency PNDJ & Associates, the brand new Type 26AS will now replicate info acquired by the federal government beneath info alternate agreements from different international locations and the knowledge acquired from every other particular person to the extent it’s within the curiosity of the income.

“The tax officers are prone to utilise the knowledge acquired beneath these agreements or info acquired from every other particular person to probe into the transactions undertaken by the taxpayers through the 12 months.

With e-assessment proceedings, taxpayers might discover it obscure how the knowledge is being utilised by the tax officer and reply appropriately.

Thus, taxpayers will now need to carefully look at the knowledge so mirrored in Type 26AS and take positions accordingly earlier than submitting the tax return,” says Dhaval Jariwala.

With a lot info in 26AS, some specialists consider, it may be utilized by banks and monetary establishments to hold out due diligence on their potential debtors.

Ved Jain, a New Delhi-based chartered accountant, thinks that banks, monetary establishments or every other physique whereas finishing up due diligence of the particular person/company involved will now ask for Type 26AS.

At current, banks and monetary establishments ask for revenue tax returns for any due diligence on mortgage candidates.

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