Form 26AS is also known as an Annual statement that provides a consolidated credit statement issued under Section 203 AA of the Indian-Tax act 1961. It includes tax-related information such as Tax Deduction at Source (TDS), Tax Collected at Source (TCS), and refunds, etc. The Income-tax department declared that from this assessment year, the taxpayers will see an improved version of Form 26AS which contains some additional details on the taxpayer’s financial transactions as specified Statement of Financial Transactions in various categories (SFTs). Form 26AS is associated with the Permanent Account Number (PAN).
The Form 26ASwill give an outlook about the clear picture of all the tax that has been deducted against our Permanent Account Number and paid to the Government. It is one of the crucial documents that a taxpayer should access before filing one’s returns for the year. The Central Board of Direct Taxes (CBDT) point outs that at the earlier period the Form 26AS relating to the Permanent Account Number was used to give information regarding tax deductions at the sources and the tax collections at source besides other certain additional information including details of other taxes paid, refunds and TDS defaults. In the case of TDS on sale of immovable property, the buyer is required to deduct tax at source from the consideration paid to the seller of the property. If we have sold a property during the financial year, details of the taxes deducted by the purchaser while making the payment we should also show up in our Form 26AS. But now the Form 26 AS will have the Statement of Financial Transactions (SFTs) that helps the taxpayers to remind all the major financial transactions so that the payer has a ready reckoner to enable them while filing the Income Tax Return (ITR).
The Form 26AS can be easily accessed from the income-tax website by taxpayers using their Permanent Account Number (PAN). Now the Income Tax Department has been revamped to the ‘Annual Information statement’. It contains comprehensive details regarding the information relating specified financial transactions, payment of taxes, details of specified financial transactions like purchase of shares or property, demand or refund, or any kind of pending or completed proceedings undertaken by a taxpayer in a particular financial year that has to be mentioned in the income tax returns. The Budget 2020-2021 had introduced a new Section 285BB in the income tax act to implement the new Form 26AS.