1. New disclosures in the new ITR forms:
- House ownership: Individual taxpayers who are joint owners of house property cannot file ITR-1 or ITR-4.
- Passport: Passport number to be disclosed if held by the taxpayer. The same is to be furnished both in ITR 1-Sahaj and ITR 4-Sugam.
- Cash deposit: For those filing ITR 4-Sugam, it has been made compulsory to declare the amount deposited as cash in a bank account, if such amount exceeds Rs 1 crore during the Financial Year.
- Foreign travel: Disclosure of actual amount spent during the year, if the amoune exceeds Rs 2 lakh on travelling abroad.
- Electricity consumption: If the electricity bill is more than Rs. 1 lakh in aggregate, the same shall be disclosed.
- Investment details: Details of investment qualifying for deduction to be disclosed while filing ITR if made during the period from April 1, 2020 to June 30, 2020.
2. Changes in Form 26AS
Till Now, Form 26AS had always been an annual credit statement issued by the income tax department to help taxpayers cross-verify income earned, Tax deducted at Source (TDS) and tax deposited during a given financial year.
In the new picture, Form 26AS will now be a complete profile of the taxpayer which will have comprehensive information on taxes paid, details of pending and completed income tax proceedings, status of income tax demand and refund among others.
Key takeaways of the New Form 26AS released by CBDT vide Notification dated 28th May, 2020 by way of amendment in Sec 285BB w.e.f 01st June, 2020 are:
- This form will also have mobile no, Email-id and Aadhar no. of the taxpayer.
- Information on the form will not be a one-time affair at year This will be a live 26AS, as this will be updated regularly within 3 months from the end of the month in which such information is received.
- Banks, financial institutions or any other authority or customer, buyer etc. while carrying out due diligence of the person/ corporate concerned will now ask for form 26AS so as to be sure that there are not any major issues about such person/corporates. As a result of introduction of New form, now it will be difficult for any taxpayer to hide information from any bank / financial institution/ authority about any proceedings against under any law or tax demand, tax disputes etc
- New form 26AS will also provide information in respect of "Specified financial transactions" which includes the following:
- transactions of purchase/ sale of goods or property, rendering of services
- transactions under works contract,
- transactions by way of an investment or an expenditure incurred.
- taking or accepting any loan or deposits of such value as may be prescribed but not less than of Rs 50,000.
- Income Tax Demand & Refund
- proceedings pending, and proceedings completed which may include assessment, reassessment under section 148,153A 153C, revision, appeal
- Further an enabling provision has been notified empowering the CBDT to authorise DG Systems or any other officer to upload in this form, information received from any other officer, authority under any law. Thus any adverse action initiated or taken or found or order passed under any other law such as custom , GST, Benami Law etc. including information about Turnover , import , export will also be put in this form so that not only the concerned taxpayer but also all the Income Tax authorities will know and have access to such information.
- This form will also provide information received by Tax Department from any other country under the treaty /exchange of information about income or assets of the taxpayer located outside
With the launch of The Transparent Taxation: Honoring the Honest on 13th August,2020, Honourable PM Narendra Modi announced a landmark shift in the income tax administration to make it simple, painless and transparent.
The Finance Ministry has also proposed new measures to ensure better compliance by expanding the scope of Reporting of following Transactions and reporting the same in New Form 26AS:
- Payment of Educational Fee/Donations above Rs. 1 lakh per annum
- Electricity Consumption Bill of more than Rs 1 lakh per annum
- Domestic business class air travel or foreign travel
- Payment to Hotel above Rs 20,000
- Purchase of jewellery, white goods, paintings, marble, etc above Rs 1 lakh
- Deposits/credits in current account above Rs 50 lakh
- Deposits or credits in non-current account above Rs 25 lakh
- Payment of property tax above Rs 20,000 per annum
- Life insurance premium above Rs 50,000
- Health insurance premium above Rs 20,000
- Share transactions, demat account, bank lockers
The government has also proposed to deduct TDS/collect TCS at higher rates for those who do not file Income Tax Returns (ITR). There is also a proposal for compulsory filing of ITR by those who have their bank transactions above Rs. 30 lakh, all professionals, businesses having turnover above Rs. 50 lakh and payment of rent above Rs. 40,000.
Tags :income tax