New Form 26AS makes ITR filing easy for taxpayers | All you need to know

New Delhi: For many taxpayers, filing an annual filing of income tax return (ITR) is the most tedious task, as it requires gathering information on all investments made in the tax year, collecting a certificate of home loan interest, etc. However, from this year onwards, ITR will be the simplest and most fluid application process, as the new 26AS form will contain most of the information needed to submit ITR.

Beginning with the current evaluation year (AY), the new Form 26AS will include a Statement of Financial Transactions (SFT) in the financial transactions of taxpayers as specified, which will help taxpayers to complete the ITR process quickly and correctly.

The old Form 26AS model was used to obtain information on the origin tax deduction (TDS), the origin tax collected (TCS), and some additional information, such as details of refunds, previous TDS assumptions, and other taxes paid. But the new Model 26AS, in addition to the above information, will have money transfers, which will remind taxpayers of all their major financial transactions during the previous fiscal year.

It should be noted here that from the fiscal year 2016 onward, the Income Tax Department under Section 285BA of the Income Tax Act of 1961 receives information on high-value transactions such as the sale/purchase of real estate and deposits / Cash withdrawals from bank savings accounts, time deposits, and share purchases. , Foreign currencies, investment funds, repurchase of shares, credit card payments, cash payments for goods and services, etc., in relation to persons from various entities known as "specific persons", such as banks, investment funds, bond issuers, registrars or under-registrars, etc.

This information is mentioned in Part E of the new 26AS form. Tax experts say this information will allow taxpayers to maintain voluntary compliance and fiscal responsibility. In addition, this information will facilitate the electronic filing of returns where you can calculate the correct tax liability using the data provided in form 26AS. For example, to calculate a mutual fund's long-term capital gains, the taxpayer uses it to collect transaction data from all AMC companies and from the data he used to calculate short and long-term capital gain obligations. term. But in the process, the taxpayer has an error if he loses the transaction from any AMC company. But in the new 26AS model, you can get all the transaction data from different AMC's in one place. Therefore, the chances of error are reduced.

Part E of Form 26AS will contain information such as transaction type, SFT file name, transaction date, number of parts, single/joint transaction, amount, payment method, notes, etc. This would assist taxpayers to provide their income statements with updated financial transactions. But those who hide various financial transactions, such as information about buying shares and buying real estate for the I-T department, will have a hard time doing so now.

Also Read: How interest on bank FD is calculated in case of premature withdrawal