New Annual Information System (AIS) to Replace Annual Tax Summary Statement Form 26AS
Finance Act, 2020 (Budget 2020-2021) and amendment, inserts new Rule 114-I, had introduced a New section 285 BB in THE INCOME TAX ACT 1961 TO IMPLEMENT REVISED FORM 26 AS (Annual Information System). In order to provide more comprehensive, clear information to the taxpayer and control the misuse of tax regulations, CBDT has introduced Annual Information Statement (AIS) to replace Annual Tax Summary Statement Form 26AS. As per the notification No. 30/2020 issued dated on 28.05.2020, Annual Information Statement (AIS) is included under Section 285BB of IT Act, 1961 by inserting a new Rule 114-I in the Income Tax Rule 1962 to be made effective from 1st June, 2020 and accordingly Form 26AS will be obsolete from that date.
Earlier, as per Section 203AA, based on the data furnished by the deductors who are authorised by IT Department of India, Annual Summary Statement on TDS and TCS deductions were available in Form 26AS for the taxpayers. To bring more clarity to the process and add further details from relevant sources that the IT Department is now able to gather via electronic modes, such as, information on the sales/purchase of immovable properties, share transactions, tax-free transactions, foreign tax credits, donations, etc., Annual Information System has been proposed. The sources from which the data are now captured by IT Department are Banks, Stock Exchanges, Mutual Funds, EPFO, State Registration Department, etc. The guidelines of Annual Information Statement as proposed u/s 285BB in the new Rule 114-I can be briefly called as 'Income Tax Rule, 2020'.
Salient Features of Annual Information Statement (AIS) as per Rule 114-I u/s 285BB
- Any information relevant to assessee's income that are available to the Principal Director General of Income Tax (Systems)/Director General of Income Tax (Systems)/Person authorised by Director General (Systems) are to be uploaded in the assessee's registered account of Official Income Tax Portal within three from the end of the month in which the information is received.
- The above information are Annual Information Statement that will be added to Form 26AS.
- Information obtained from any officer/authority/any concerned person who is working under lawful agreement of section 90/90A of IT Act, 1961 are to be uploaded in the same manner.
- Relevant information as received by any person, that may deem to fit in the interest of revenue related to the first feature can be included in the Annual Information Statement.
- Procedure, format, standards for the purpose of uploading the Annual Information System are to be specified by Principal Director General of Income Tax (Systems)/Director General of Income Tax (Systems).
- The information furnished in Annual Information System (AIS) can be used by the assessee for filing IT Return, calculating tax liability or sorting IT related litigations.
Rule 114-I has been to share annual financial information in respect of each taxpayer not only of taxes paid by of TDS/TCS or otherwise.
- This form 26 AS will also have email I’d, Mobile no, and Aadhar card no. of the taxpayers.
- Information on this form 26AS will be updated regularly within 3 months from the end of the month in which such information is received.
- More comprehensive and informative revised 26AS Form is.
- information on the sales/purchase of immovable properties, share transactions, tax-free transactions, foreign tax credits, donations, etc., Annual Information System has been proposed.
- The sources from which the data are now captured by IT Department are Banks, Stock Exchanges, Mutual Funds, EPFO, State Registration Department, etc
|FORM 26AS||Annual Information Statement||Financial Year:||XXXX-XX|
|[See rule 114-I]||Assessment Year:||XXXX-XX|
|1||Permanent Account Number||Aadhaar Number:-|
|3||Date of Birth/Incorporation:|
|S NO.||Nature of Information|
|1||Information relating to tax deducted or collected at source|
|2||Information relating to specified financial transaction|
|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]|