As we know New Form 26/ Annual information statement has been introduced from 01.06.2020.
The new Form 26AS is the faceless Handholding of the taxpayers to e-file their Income tax return quickly and correctly. From this Assessment year, taxpayers will see an improved Form 26AS which would carry some additional details on taxpayers financial transactions as specified in the Statement of Financial transactions (SFT) in various categories.
It is stated that the information being received by the Income Tax Department from the filers of these specified SFTs is now being shown in Part E of Form 26AS to facilitate voluntary compliance, tax accountability and ease of e-filing of returns so that the same can be used by the taxpayer to file her or his income tax return (ITR) by calculating the correct tax liability in a feel-good environment. This will also bring in further transparency and accountability in the tax administration.
Earlier people used to mostly see only taxes paid by them or refund received by them and Income Tax officer would receive details of cash deposit or shares sold by tax payer from the bank or such other institute via SFT report under section 285BA.
Now, after the amendment in Form 26AS and with Annual Information statement even the taxpayer will have all the information in Part E of the Form such as type of transaction, name of SFT filer, date of transaction, amount of transaction etc and so he/ his CA can file the Income Tax return in a better manner and be prepared for any queries from Income Tax department.
However, still there is no facility available for taxpayers to deny any transaction which is available in their name but they haven’t undertaken any such transaction.
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