The mandate of Form 26AS would be required to be extended beyond the information about tax deducted at source.
Finance Minister Nirmala Sitharaman in her Budget 2020 speech has proposed for rationalisation of provision relating to Form 26AS. Your real estate transactions as well as transactions in shares will be better captured by the income tax department and will form the part of Form 26AS. These amendments will take effect from 1st June, 2020.
Form 26AS is a statement issued 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 contains the information about tax collected or deducted at source.
However, with the advancement in technology and enhancement in the capacity of the 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 showing such information.