The Central Board of Direct Taxes, or CBDT, has stated that the new Form 26AS will include more details capturing high value transactions.
Form 26AS has now been revamped into an Annual Information Statement, with Part E of the form supplying the additional information.
What is included?
- TDS
- TCS
- Specified financial transaction
- Payment of taxes
- Demand and refund
- Pending proceedings
- Completed proceedings
TCS: Tax collected at source is the tax payable by a seller which he collects from the buyer at the time of sale. For example, on bullion that exceeds over Rs 2 lakhs and jewellery that exceeds over Rs 5 lakhs, a rate of 1% is levied.
TDS: Tax deducted at source was introduced with an aim to collect tax from the very source of income. For example, TDS on bank fixed deposits or income from your salary.
All the above financial information under different SFTs (statements of financial transaction) will be shown in the new Form 26AS.
What is the minimum to qualify as a high value transaction?
This is applicable for a financial year.
The below figures are the minimum threshold.
It is cumulative. For example, cash deposits of Rs 10 lakh or more in saving bank account. It means that if you have deposited Rs 7 lakh in one savings account and Rs 4 lakh in another, the cumulative is Rs 11 lakh.
Payment tools
- Credit card bill payments made in cash: Rs 1 lakh
- Credit card bill payments not paid in cash: Rs 10 lakh
- Purchase of any pre-paid instruments issued by RBI: Rs 10 lakh
Cash transactions
- Purchase of bank drafts or pay orders in cash: Rs 10 lakh
- Cash deposit in one or more current account of a person: Rs 50 lakh
- Cash withdrawal in one or more current account of a person: Rs 50 lakh
- Cash deposit in your savings account in a bank: Rs 10 lakh
- Cash received for the sale of goods or rendering of services: Rs 2 lakh
Investments
- Fixed deposits in a bank (not renewals): Rs 10 lakh
- Purchase of bonds or debentures: Rs 10 lakh
- Purchase of shares: Rs 10 lakh
- Share buy-back: Rs 10 lakh
- Mutual fund investments: Rs 10 lakh
- Purchase or sale of immovable property: Rs 30 lakh
Foreign Currency
- Expenditure in foreign currency via debit card, credit card or Traveller’s Cheque: Rs 10 lakh
