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Hey awesome people,
Benjamin Franklin once said there is nothing certain in life except death and taxes. We would like to add tax returns also to that.
We are in the tax filing season now. This year due to the pandemic, the tax filing deadline has been postponed to 30 Sep 2021. Jump on to our Top Bite section to know more about how Form 26AS can help you file taxes?!
Top Bite this week
How can Form 26AS help you file your Income Tax Return?
What’s going on here?
The tax filing season is around the corner. While you gather various documents like Form 16/16A issued by your employer/bank, don’t miss out on downloading and checking up on your Form 26AS. It can act as a one-stop solution to make your tax filing exercise easier.
What is Form 26AS?
Form 26AS can be called a Tax Passbook or a Tax Statement?
It includes information on taxes already paid by or on behalf of taxpayers including Tax Deducted at Source (TDS) and Tax Collected at Source(TCS) which could be your Tax deducted from salary, interest income from bank, dividend, or advance tax paid.
All of this is reflected in your Form 26AS.
New additions to Form 26AS
From July 2020 onwards, the scope of Form 26AS has expanded and it will reflect much more than just tax credit against your PAN. Some of the new features will be
?Addition of personal details like Aadhaar, Date of Birth/Incorporation?, email, and mobile number? (Update your profile on tax filing site for this).
?High-value transactions? above a set amount/ Specified Financial Transactions like
- Investments in mutual funds, equities, etc
- Sale or purchase of immovable property (real estate)?
- Foreign currency transactions??
- Cash deposit or withdrawal from an account?
- Payment of credit card bills or for any goods or services (above a limit) in cash/electronic means?
- Buyback of shares above a certain limit ◀
?Information regarding refund or demand of Income Tax
Information pertaining to ongoing and completed tax proceedings (if any)
?Any details received under Double Taxation Avoidance Agreement or Tax Information Exchange Agreement.
Do you see a common link here? All these changes point towards govt’s focus on increased tax compliance and lower incidence of tax evasion.
How do you download/view your Form 26AS?
There are multiple ways to view or download your Form 26AS. They are
- From the new Income Tax Website using the link https://www.incometax.gov.in/iec/foportal/
- From your net banking account
- From the TRACES website
The govt has doubled the TDS rate for all those who haven’t filed tax returns for the last two years. So, don’t get caught on the wrong foot. It may not be wise to avoid filing tax returns anymore.
You Ask – We Answer
Can I complete my physical copy of tax returns at an Income Tax Office or should I only e-file my tax return? – Geeta Subedar
You will have to e-file your tax returns. Physical copies of tax returns are no more accepted at any IT office. The only exception to this is if you are aged 80 and above( a super senior citizen) and you are using ITR 1 or ITR 4 to file your tax return.
? Do you have questions on personal finance & investing? Shoot them in the comments below, our experts will be happy to answer them and feature them in our upcoming issues.
Quiz Bite
What is the minimum income(in a yr) above which filing of tax return is mandatory? (You could leave your answers in the comments below)
- Rs 2.5 lakh
- Rs 5 lakh
- Rs 50000
- Rs 10 lakh
image source: businesstoday.in
