New Section 285BB- Form 26AS to provide multiple information
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Rationalisation of provision relating to Form 26AS
Section 203AA of the Act, inter-alia,
requires the prescribed income-tax authority or the person authorised
by such authority referred to in sub-section (3) of section 200, to
prepare and deliver a statement in Form 26AS to every person from whose
income, the tax has been deducted or in respect of whose income the tax
has been paid specifying the amount of tax deducted or paid.
The Form 26AS as prescribed in the Rules, inter-alia, contains
the information about tax collected or deducted at source. However,
with the advancement in technology and enhancement in the capacity of
system, multiple information in respect of a person such as
sale/purchase of immovable property, share transactions etc. are being
captured or proposed to be captured. In future, it is envisaged that in
order to facilitate compliance, this information will be provided to the
assessee by uploading the same in the registered account of the
assessee on the designated portal of the Income-tax Department, so that
the same can be used by the assessee for filing of the return of income
and calculating his correct tax liability.
As
the mandate of Form 26AS would be required to be extended beyond the
information about tax deducted, it is proposed to introduce a new
section 285BB in the Act regarding annual financial statement. This
section proposes to mandate the prescribed income-tax authority or the
person authorised by such authority to upload in the registered account
of the assessee a statement in such form and manner and setting forth
such information, which is in the possession of an income-tax authority,
and within such time, as may be prescribed.
Consequently, section 203AA is proposed to be deleted.
These amendments will take effect from 1st June, 2020.
[Clauses 90]
Extract of Relevant Clauses of Finance Bill, 2020
Clauses 90
“Clause 90 of the Bill seeks to amend section 203AA of the Income-tax Act relating to furnishing of statement of tax deducted.
It is proposed to omit the said section.
This amendment will take effect from 1st June, 2020.”
Extract of Relevant Amendment Proposed by Finance Bill, 2020
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