Form 26AS is a consolidated statement from the Income Tax Department that contains details of tax deductions and tax exemptions. It is available for all taxpayers. This year, the Income Tax authorities in India have recommended the below new structure of the from:
Part A | TDS details of Form 15G/Form 15H and TDS details for the sale of immovable property by sellers |
Part B | Details of Tax Collected at Source from buyers by sellers |
Part C | Details of Tax Paid (Other than TDS or TCS) like Advance Tax or Self assessment tax |
Part D | Details of tax Refund during the financial year |
Part E | Details of high-value transactions such as mutual fund purchases, property purchases, bonds |
Part F | Details of TDS on Sale of Immovable Property for Property buyers |
Part G | TDS Defaults |
As shown, this new form will also contain details of high-value transactions like property tax, medical insurance, health insurance, credit card bills, school fees and even bills paid at restaurants. All of the payment details should be shared with the government.
Which Transactions Should Be Included in Part E?
Education fee payments exceeding Rs. 1 lakh p.a
Electricity bill payment exceeding Rs. 1 lakh p.a
Domestic/International Business Class Air travel
Hotel bills exceeding Rs. 20,000
Jewellery, white goods, painting purchases worth more than Rs. 1 lakh
Current Account deposits/credits exceeding Rs. 50 lakhs
Savings Account deposits/credits exceeding Rs. 25 lakhs
Property tax exceeding Rs. 20,000 p.a
Life Insurance premium above Rs. 50,000
Health Insurance premium above Rs. 20,000
Transaction details of Demat Accounts and Bank lockers
Tax Avoidance vs Tax Evasion
Tax avoidance refers to using legal methods of paying lesser taxes. Tax evasion, on the other hand, refers to the use of illegal methods to avoid paying taxes. Corporations or individuals conceal income information from authorities to reduce tax liability.
Why Should You Pay Taxes on Time?
Failure to pay taxes on time can result in penalty and imprisonment. The penalty depends on your tax bracket; if you pay taxes after the due date but before December 31st of any financial year, you have to pay a penalty of Rs. 1000 to Rs. 5000. If you pay taxes after December 31st, you will have to pay taxes of up to Rs. 10000. It is necessary to verify all income sources and transactions to avoid unwanted tax evasion.
Income Tax is the most significant source of income for the Indian government. With the help of these taxes, the government runs smoothly. Proper financial planning and paying tax dues on time can go a long way and can help you avoid any unseen consequences. Pay taxes on time and be a responsible citizen.
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* The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. You are recommended to obtain specific professional advice from before you take any/refrain from any action. Tax benefits are subject to changes in tax laws. Please contact your tax consultant for an exact calculation of your tax liabilities.