NEW FORM 26AS UNDER INCOME TAX ACT, 1961

[Mr. M. GOVINDARAJAN]

Annual Tax Statement

Section 203AA of the Income Tax Act, 1961 (‘Act’ for short) provides that  the prescribed income-tax authority or the person authorized by such authority (any person deducting tax), shall, within the prescribed time after the end of each financial year beginning on or after the 01.04.2008,  prepare and deliver to every person from whose income the tax has been deducted or in respect of whose income the tax has been paid a statement in the prescribed form  specifying the amount of tax deducted or paid and such other particulars as may be prescribed.

Section 206C(5) of the Act provides that every person collecting tax in accordance with the provisions of this section shall within such period as may be prescribed from the time of debit or receipt of the amount furnish to the buyer or licensee or lessee to whose account such amount is debited or from whom such payment is received, a certificate to the effect that tax has been collected, and specifying the sum so collected, the rate at which the tax has been collected and such other particulars as may be prescribed .

Rule 31AB of Income Tax Rules provides that the Director General of Income-tax (Systems) or the person authorized by the Director General of Income-tax (Systems) shall deliver-

• to every person from whose income the tax has been deducted; or
• to the buyer referred to in sub-section (1) or, as the case may be, to the licencee or lessee referred to in sub-section (1C) of section 206C from whom the amount has been collected; or
• to every person in respect of whose income the tax has been paid,
• a statement referred to in section 203AA or the second proviso to sub-section (5) of section 206C, in Form No. 26AS by the 31st July following the financial year during which taxes were deducted or collected or paid.

Contents of Form 26AS

This form is called as ‘Annual Tax Statement under Section 203AA of the Income Tax Act, 1961’.  In the beginning of the form the following details will be displayed-

• Permanent Account Number (PAN);
• Current Status of PAN – whether Active or not;
• Financial year
• Assessment year
• Name of the Assessee
• Address of the Assessee.

Form 26AS, besides the above information, contains six parts as detailed below-

• Part A – Details of tax deducted at source;

• Part A 1 - Details of Tax Deducted at Source for 15G / 15H
• Part A 2 - Details of Tax Deducted at Source on Sale of Immovable Property u/s 194IA/ TDS on Rent of Property u/s 194IB / TDS on payment to resident contractors and professionals under section 194M (For Seller/Landlord of Property/Payee of resident contractors and professionals)

• Part B –  Details of tax collected at source;
• Part C – Details of tax paid other than TDS/TCS; (Advance tax)
• Part D – Details of paid refund;
• Part E – Details of AIR Transaction;

• Due date for filing Annual Information return by specified entities (Filers) is 31st August, immediately following the FY in which transaction is registered / recorded. This section will be updated after filing AIR.

• 2. Transaction amount is total amount reported by AIR filer. It does not reflect respective share of each individual in joint party transaction.

• Part F - Details of Tax Deducted at Source on Sale of Immovable Property u/s 194IA/ TDS on Rent of Property u/s 194IB /TDS on payment to resident contractors and professionals u/s 194M (For Buyer/Tenant of Property /Payer of resident contractors and professionals)

• Part G – TDS defaults.

Annual Information Statement

The Finance Minister, in her budget speech for the current year, proposed to rationalize the provision regarding uploading of Form 26AS so as to include all the prescribed information. 

Accordingly Finance Act, 2020 inserted a new section 285BB with effect from 01.06.2020.  The newly inserted section 285BB provides that the prescribed income-tax authority or the person authorized by such authority shall upload in the registered account of the assessee an annual information statement in such form and manner, within such time and along with such information, which is in the possession of an income-tax authority, as may be prescribed.

The explanation to this section defines the expression   ‘registered account’ means the electronic filing account registered by the assessee in designated portal, that is, the web portal designated as such by the prescribed income-tax authority or the person authorized by such authority.

Amendment to Rules

Vide Notification No 30/2020, dated 28.05.2020, the CBDT amended the Income Tax Rules.  The amendment Rules omitted Rule 31AB and inserted a new Rule 114I.

The new rule deals with Annual Information Statement.  Rule 114I(1) provides that the Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems) or any person authorized by him shall, under section 285BB of the Income-tax Act,1961, upload in the registered account of the assessee an annual information statement in Form No. 26AS containing the following information, which is in his possession within three months from the end of the month in which the information is received by him-

• Information relating to tax deducted or collected at source;
• Information relating to specified financial transaction;
• Information relating to payment of taxes;
• Information relating to demand and refund;
• Information relating to pending proceedings;
• Information relating to completed proceedings.

Rule 114I(2) provides that the Board may also authorize the Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems) or any person authorized by him to upload the information received from any officer, authority or body performing any function under any law or the information received under an agreement referred to in section 90 or section 90A of the Income-tax Act,1961 or the information received from any other person to the extent as it may deem fit in the interest of the revenue in the annual information statement.

Rule 114I (3) provides that the Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems) shall specify the procedures, formats and standards for the purposes of uploading of annual information statement.

New Form 26AS

The new Form 26AS (with effect from 01.06.2020) will contain two parts viz., Part A and Part B.  Part A of the form will contain the following-

• Permanent Account number;
• Aadhaar Number;
• Name of the assessee;
• Date of birth/incorporation;
• Mobile number;
• E-mail address;
• Address.

Part B of the said form will contain the following-

• Information relating to tax deducted or collected at source;
• Information relating to specified financial transaction;
• Information relating to payment of taxes;
• Information relating to demand and refund;
• Information relating to pending proceedings;
• Information relating to completed proceedings;
• Any other information in relation to sub-rule (2) of rule 114-I.

The expression ‘specified financial transaction, has not been defined in the rule.  The CBDT may later will provide the details for specified financial transaction.