Key Changes in Income Tax Policies

1. New exposures in the new ITR structures:

1. House ownership: Individual taxpayers who are joint owners of house property cannot file ITR-1 or ITR-4.
2. Passport: 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.
3. Cash deposit: For those filing ITR 4-Sugam, it has been made compulsory to declare the amount deposited as cash in a bank account, if such amount exceeds Rs 1 crore during the Financial Year.
4. Foreign travel: Disclosure of actual amount spent during the year, if the amoune exceeds Rs 2 lakh on travelling abroad.
5. Electricity consumption: If the electricity bill is more than Rs. 1 lakh in aggregate, the same shall be disclosed.
6. Investment details: 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.

2. Chanfes in form 26AS

Till Now, Form 26AS had consistently been a yearly credit explanation gave by the personal duty office to enable citizens to cross check salary earned, Tax deducted at Source (TDS) and assessment saved during a given money related year.

In the new picture, Form 26AS will currently be a finished profile of the citizen which will have far reaching data on charges paid, subtleties of pending and finished annual expense procedures, status of personal duty request and discount among others.

Key takeaways of the New Form 26AS delivered by CBDT vide Notification dated 28th May, 2020 by method of revision in Sec 285BB w.e.f 01st June, 2020 are:

1. This form will also have mobile no, Email-id and Aadhar no. of the taxpayer.
2. Information on the form will not be a one-time affair at year This will be a live 26AS, as this will be updated regularly within 3 months from the end of the month in which such information is received.
3. Banks, financial institutions or any other authority or customer, buyer etc. while carrying out due diligence of the person/ corporate concerned will now ask for form 26AS so as to be sure that there are not any major issues about such person/corporates. As a result of introduction of New form, now it will be difficult for any taxpayer to hide information from any bank / financial institution/ authority about any proceedings against under any law or tax demand, tax disputes etc
4. 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 as may be prescribed but not less than of Rs 50,000.
• Income Tax Demand & Refund
• proceedings pending, and proceedings completed which may include assessment, reassessment under section 148,153A 153C, revision, appeal
5. Further an empowering arrangement has been told enabling the CBDT to approve DG Systems or some other official to transfer in this structure, data got from some other official, authority under any law. Subsequently any antagonistic move started or made or found or request went under some other law, for example, custom , GST, Benami Law and so forth including data about Turnover , import , fare will likewise be placed in this structure with the goal that the concerned citizen as well as all the Income Tax specialists will know and approach such data.
6. This structure will likewise give data got by Tax Department from some other nation under the settlement/trade of data about salary or resources of the citizen situated outside

With the dispatch of The Transparent Taxation: Honoring the Honest on thirteenth August,2020, Honorable PM Narendra Modi declared a milestone move in the personal expense organization to make it straightforward, easy and straightforward.

The Finance Ministry has likewise proposed new measures to guarantee better consistence by extending the extent of Reporting of following Transactions and revealing the equivalent in New Form 26AS:

1. Payment of Educational Fee/Donations above Rs. 1 lakh per annum
2. Electricity Consumption Bill of more than Rs 1 lakh per annum
3. Domestic business class air travel or foreign travel
4. Payment to Hotel above Rs 20,000
5. Purchase of jewellery, white goods, paintings, marble, etc above Rs 1 lakh
6. Deposits/credits in current account above Rs 50 lakh
7. Deposits or credits in non-current account above Rs 25 lakh
8. Payment of property tax above Rs 20,000 per annum
9. Life insurance premium above Rs 50,000
10. Health insurance premium above Rs 20,000
11. Share transactions, demat account, bank lockers