Key Changes made in Income Tax policies

Last Updated On: Aug. 29, 2020, 8:14 p.m.
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KEY CHANGES MADE IN THE INCOME TAX POLICIES

Disclosures in the new ITR forms:

Individual taxpayers who are joint owners of house property cannot file ITR-1 or ITR-4.

Those who are filing ITR-4 Sugam, it has been made compulsory to declare the amount deposited as cash in the bank account, if such amount exceeds Rs.1 crore during the financial year.

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.

Disclosure of actual amount spent during the year, if the amount exceeds Rs 2 lakh on travelling abroad.

If the electricity bill is more than Rs. 1 lakh in aggregate, the same shall be disclosed.

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

 

CHANGES MADE IN FORM 26AS:
 

  • Form 26AS is considered to be an annual credit statement issued by the income tax department to help taxpayers to cross-verify the income earned, Tax deducted at Source (TDS) and tax deposited during a given financial year.
  • In the new form, 26AS will give a complete picture of the taxpayer with information on taxes paid, details of pending and completed income tax proceedings, the status of income tax demand, and refund among others.


 


Major Changes made in Form 26AS:

New Form 26AS released by CBDT dated has the following changes made:

The form contains information related to Mobile number, e-mail id, Adhaar, and taxpayer number.

The information furnished in the form is not a one time update. There will be updates regularly within 3 months from the end of the month in which such information is received.
 

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 may be prescribed but not less than Rs 50,000.
  • Income Tax Demand & Refund
  • Proceedings pending, and proceedings completed which may include assessment, reassessment under section 148,153A 153C, revision, appeal


 

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 the current account above Rs 50 lakh
  • Deposits or credits in the 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

 

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