What will FORM 26AS appear like in Future?
At Present it is a TAX CREDIT STATEMENT meaning it displays the taxes paid by us like Advance Tax, Self Assessment Tax and Particulars of TDS made by others on our behalf.
But what if it was developed into something far more than that? Please think about it.
1) What if there existed a Nexus between all Important Organisations and the IT Department?
2) What if all our chapter VI-A Deductions like 80C deductions: LIC, PPF,Tax Saver FDs, 80CCF: Infrastructure Bonds, 80D deductions like Mediclaim etc could be viewed in Form 26AS? This would require all Organisations to perform Some Information Filing with the IT Department on Similar lines as TDS filing.
3) What if Salary Paid details like GROSS SALARY paid Profession Tax, Statutory Savings can be viewed instead of just Amount Credited and TDS?
4) What if FORM 26AS could in itself contain our Computation of total Income?
5) What if the era where we declare our own Income could be done away with and the IT Department itself determine how much tax to pay? Income from Business should be an exception because it would be impossible for them to know the profit made.
6) 26AS might be half PRE-FED and only half self declared. Where self declaration is made, adequate proof might be asked like in Case of Business, Details of Audited Report, Audited P&L Account might have to be Digitally uploaded.
7) Also if there is any minor adjustments or Corrections, an Opportunity should be given to the Assessee to make suitable corrections in Form 26AS but for every correction made, reasonable proof has to be attached.
8) This would enable the Authorities to have complete control over an individuals financials and prevent Black money and corruption.
9) As of today there is the AIR Report (Annual Information Report) which places a legal obligation on certain persons like: Banks, Mutual Funds, Sub Registrars Office, Certain Traders etc to disclose information about High Value financial transactions like:
i) A Banker is required to disclose information to the IT authorities by way of AIR Report if any customer makes a cash deposit Aggregating to more than 2 lakhs in a year
ii) A Mutual Fund is required to disclose information if any client buys or sells Mutual Funds of more than 2 lakhs
iii) A Sub Registrar is Required to file AIR about Property transactions above 30 lakhs in value.
Ever wonder why they ask for your PAN Everywhere? We are being watched.
10) Many have been brought under the purview of AIR. Bt is it really effective? I mean has anybody seen any clients information appearing in forn 26AS if he makes a cash deposit more than 2 Lakhs. I have only seen mutual fund transactions so far in AIR.
11) Likewise quoting of PAN has been made mandatory if you enter into certain transactions above certain limit like Purchase of Jewellery, Purchase or sale of shares, purchase of Motor Cars (Think twice before buying a luxury car) even buying certain bonds, taking LIC Policies, buying Real Estate etc.
12) FORM 26AS COULD GIVE INFORMATION SUCH AS HOUSE PROPERTY INCOME/LOSS, CAPITAL GAINS/LOSS MADE (Share brokers already give Gain/Loss Statements, they just have to take it one step further.
13) IS IT GOOD OR BAD? IS A QUESTION WHICH NEEDS TO BE CONTEMPLATED. THE ABOVE IS JUST MY OPINION AND FORECAST. PLEASE BE FREE TO AGREE OR DISAGREE. I INVITE COMMENTS, VIEWS AND OPINIONS.