How taxmen will help you file I-T return correctly

The fresh info to be uploaded in form 26AS includes remittances received from overseas, interest on income tax refund, dividend from mutual funds, purchase of MFs, among others.

Now, more pieces of information about your transactions and income, such as remittances received from overseas, will be uploaded in Form 26AS by the income-tax (I-T) department.

This will help the taxpayer file I-T return (ITR) correctly and assist the department in detecting discrepancies, if any, in the ITR.

Besides foreign remittances, these new items are interest on I-T refund, dividend from mutual funds (MFs), and purchase of MFs, among others.

Form 26AS will also incorporate information on salary break-up, any deductions to be claimed by the employee, his/her income from other sources and house property, and the overall tax liability, said Om Rajpurohit, director-corporate and international tax, AMRG & Associates.

Information about transactions by companies will also be included in the Form to help them file ITR accurately.

In its latest order, the Central Board of Direct Taxes has asked the Directorate of I-T (Systems) to upload the new pieces of information in Form 26As.

Form 26AS, also called the tax credit statement or the annual information statement, was revamped in the 2020-21 assessment year to capture high-value transactions.

It also includes details on taxes deducted and deposited.

New information will also include particulars on the sale or purchase of a motor vehicle, opening of demat account with a depository, payment to a hotel, etc.

The Form will also enclose information on off-market transactions.

These transactions are not settled on stock exchanges.

The onus of reporting such transactions has been put on the relevant depositories or registrar and transfer agents.

The new items also incorporate information on ITR of other taxpayers.

Although there is no clarity yet, it has been observed that in the case of merger and acquisition or transfer of tax deducted at source (TDS) credit, details of one party are mentioned in the ITR form of other persons, said Rajpurohit.

The information is required to be uploaded within three months from the end of the month in which the information is received.

"The updated Form 26AS will make taxpayers aware of the reportable transactions well in advance and assist them in the correct disclosure and income computation while filing return of income," said Rajpurohit.

This will also help shrink penalties on non-disclosure and non-reporting of information, he added.

Currently, the Form contains minutiae on specified financial transactions, such as cash deposits of at least Rs 10 lakh in savings accounts in a year, opening up of one or more new fixed deposits of at least Rs 10 lakh, credit card payments of Rs 1 lakh in cash and Rs 10 lakh via other modes, investment of at least Rs 10 lakh in equity shares and MFs, and purchase of immoveable property of at least Rs 10 lakh.