CBDT notifies Annual Information Statement to replace existing form 26AS

The Finance Bill 2020 introduced a new Section 285BB in the Income Tax Act 1961 to implement revised Form 26AS. Pursuant to the section, the CBDT has notified new Form 26AS (Annual Information Statement) vide notification no 30/2020 dated 28th May 2020 inserting rule 114-I under Income Tax Rules 1962 and omitting the existing rule 31AB to be effective from 1st June 2020.

The new Form 26AS (Annual Information Statement) shall contain the following information:

1. Information relating to tax deducted or collected at source (TDS or TCS)
2. Information relating to specified financial transaction (SFT)
3. Information relating to payment of taxes
4. Information relating to demand and refund
5. Information relating to pending proceedings
6. Information relating to completed proceedings
7. Any other information in relation to sub-rule (2) of rule 114-I

The CBDT has also authorised appropriate authority 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.

With multiple information available at one place including that of purchase / sale of immovable properties and share transactions in the new Form 26AS/AIS, it is expected to assist tax authorities doing e-assessment and having no/ limited interaction with taxpayers, as tax authorities will be able to easily compare information available in the new Form 26AS/AIS vis-a-vis information reported by taxpayer in ITR and any mismatch may be easily flagged by the systems. It will also assist the taxpayers to identify and take corrective action in case any incorrect information/ detail is reported in new Form 26AS/AIS.