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CBDT Notifies New Annual Information Statement (AIS) to replace Form 26AS to report TDS, Foreign Tax Credit, and more

cbdt-notifies-new-annual-information-statement-ais-to-replace-form-26as

CBDT Notifies New Annual Information Statement (AIS) to replace Form 26AS to report TDS, Foreign Tax Credit, and more: CBDT has notified vide Notification No. 30/2020 dated 28.05.2020 the new Annual Information Statement (AIS) under section 285BB by inserting a new Rule 114-I in the Income Tax Rules, 1962 to replace age-old Form 26AS notified under Rule 31AB. The New Annual Information Statement (AIS) will be effective from 01.06.2020 and from that date the old Form 26AS will become obsolete.

The Finance Act 2020 has inserted a new section 285BB regarding Annual Information Statement, in order to expand the scope of Form 26AS beyond the information related to taxpayers tax deducted and tax collected.

Form 26AS was introduced under section 203AA to report the TDS and TCS of the taxpayer. 

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, a new section 285BB is introduced in the Income Tax Act, 1961 regarding Annual Information Statement or AIS.

This section mandates 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 deleted from the statute from 1st June, 2020.

While presenting the Union Budget for 2019 on 5th July, 2019, the Finance Minister told that pre-filled tax returns will be made available to taxpayers which will contain details of salary income, capital gains from securities, bank interests, and dividends, etc. and tax deductions. Information regarding these incomes will be collected from the concerned sources such as Banks, Stock exchanges, mutual funds, EPFO, State Registration Departments, etc.

Further, section 80G and section 35 mandates a charitable or scientific research institution which receives donation or contribution are also required to furnish a statement of donations or contributions received to the income-tax authority and the same will be reflected in the Annual Information Statement.

For the execution of the same, an amendment is brought in the Income Tax Act, 1961 by introducing section 285BB and Rule 114-I in the Income Tax Rules, 1962.

Section 285BB of the Income Tax Act, 1961 on Annual Information Statement reads as follows-

The prescribed income-tax authority or the person authorised by such authority shall upload in the registered account of the assessee an annual information statement in such form and manner, within such time and alongwith such information, which is in the possession of an income-tax authority, as may be prescribed.

Explanation.––For the purposes of this section, “registered account” means the electronic filing account registered by the assessee in designated portal, that is, the web portal designated as such by the prescribed income-tax authority or the person authorised by such authority.

With the introduction of section 285BB, the old Form 26AS will no longer be available and will be replaced by a more comprehensive Annual Information Statement or AIS. This will curb tax evasion, promote transparency and simplify the tax system and the return filing process.

Annual Information Statement or AIS is more comprehensive than the Form 26AS as it will contain more information about financial transactions of taxpayers beyond the TDS and TCS transactions. Presently, only the transactions which suffer TDS or TCS are reported by the deductor and the same gets reflected in Form 26AS. Those financial transactions on which no tax is deducted are not reported in the Form 26AS except those cases for which Form 15G or Form 15H or lower TDS certificate under section 197 are furnished.

The new and comprehensive Annual Information Statement or AIS has now been notified by the CBDT by Notification No. 30/2020 dated 28.05.2020.



Read the full text of Notification No. 30/2020 dated 28.05.2020.


MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)

NOTIFICATION

New Delhi, the 28th May, 2020

INCOME-TAX


G.S.R. 329(E) – In exercise of the powers conferred by section 285BB read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely :-


1. Short title and commencement.-(1) These rules may be called the Income-tax (11th Amendment) Rules, 2020.


(2) They shall come into force with effect from the 1st day of June, 2020.


2. In the Income-tax Rules, 1962 –


(I) rule 31AB shall be omitted;


(II) after rule 114H, the following rule shall be inserted, namely:-


Annual Information Statement


114-I. (1) The Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems) or any person authorised by him shall, under section 285BB of the Income-tax Act, 1961, upload in the registered account of the assessee an annual information statement in Form No. 26AS containing the information specified in colunm (2) of the table below, which is in his possession within three months from the end of the month in which the information is received by him:-


TABLE


Sl. No
Nature of information
(1)
(2)
(i)
Information relating to tax deducted or collected at source
(ii)
Information relating to specified financial transaction
(iii)
Information relating to payment of taxes
(iv)
Information relating to demand and refund
(v)
Information relating to pending proceedings
(vi)
Information relating to completed proceedings


(2) The Board may also authorise the Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems) or any person authorised by him to upload the information received from any officer, authority or body performing any function under any law or the information received under an agreement referred to in section 90 or section 90A of the Income-tax Act,1961 or the information received from any other person to the extent as it may deem fit in the interest of the revenue in the annual information statement referred to in sub-rule (1).


(3) The Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems) shall specify the procedures, formats and standards for the purposes of uploading of annual information statement referred to in sub-rule (1).”


(III) in Appendix II, Form 26AS shall be substituted by the following Form, namely:-



Form 26AS


Annual Information Statement
[See rule 114-I ]

Financial Year:
XXXX-XX
Assessment Year:
XXXX-XX


Part A
Permanent Account Number:

Aadhaar Number:

Name :

Date of Birth/Incorporation:

Mobile No. :

Email Address :

Address:



Part B
Sl. 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


[Notification No. 30/2020/F. No. 370142/20/2020-TPL]
ANKUR GOYAL, Under Secy.


Note: The principal rules were published in the Gazetted of India, Extraordinary, Part II Section 3, Sub-section (ii) vide number S.O. 969 (E) dated the 26th March, 1962 and last amended by the Income-tax (10th Amendment) Rules, 2020 vide notification No. G.S.R. 315(E), dated the 27-5-2020.


Read more on the new Annual Information Statement here.

Download Copy of Notification No. 30/2020 dated 28.05.2020 in pdf format.

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