Annual Information Statement Replaces Form 26as

Finance Act, 2020

had inserted a new section 285BB in the Income Tax Act 1961. The said section contains that a prescribed income-tax authority or any person authorized by such authority shall upload an annual information statement in the registered account of the taxpayer in such form and manner, within such time and along with such information that the income tax authority possesses, as may be prescribed. In accordance with section 285BB, CBDT has passed

on 28th May 2020 through which the existing

Form 26AS

has been replaced with a new version of Form 26AS containing a statement named Annual Information Statement (AIS). Rule 31AB which dealt with Form 26AS has been omitted and a new rule 114I has been inserted. The new statement is effective from 1st June 2020. Rule 114I states that the Principal Director-General of Income Tax (Systems) or the Director General of Income Tax (Systems) or any person authorized by them shall upload an Annual Information Statement in Form 26AS containing the following information, which is in his possession within three months from the end of the month in which the information has been received by him:

Sl. No.	Nature of Information
1	Information regarding tax deducted or collected at source
2	Information regarding specified financial transaction
3	Information regarding payment of taxes
4	Information regarding demand and refund
5	Information regarding pending proceedings
6	Information regarding completed proceedings

Specified financial transactions have been prescribed in Section 285BA. The section states that following transactions shall be known as specified financial transactions (SFTs) and shall be reported by specified persons in the Annual Information Report(AIR):

Purchase, sale or exchange of goods, property, right or interest in a property
Rendering of any service
Works contract
Investment made or any expenditure incurred
Taking or accepting any loan or deposit

The section also provides that the Board may prescribe different values for different transactions undertaken by different persons. So, all the reportable SFTs shall now form part of the Annual Information Statement in Form 26AS. Rule 114I also provides that any information received under a

DTAA

with any country or specified territory or association or any information received from any other person if found to the interest of the revenue has to be uploaded in the annual information statement. Thus, now information exchanged with the government under a DTAA shall also be incorporated in the AIS. Apart from this specific information, some general information also forms part of the Annual Information Statement, namely:

Permanent Account Number
Aadhaar Number
Date of Birth/ Incorporation
Mobile No.
Email Address
Address

Thus, you shall now witness a new version of Form 26AS containing the Annual Information Statement. While the old Form 26AS contained only the information about tax deducted or collected, the new form is more comprehensive and in addition to the information of tax deducted and collected it also contains other significant information like that of SFTs, information obtained under DTAA, details of pending and completed proceedings, and so on. The new statement is aimed to bring more transparency in the tax regime and curb tax avoidance practices. It is expected to widen the tax base and discourage the taxpayers to hide information about the financial transactions undertaken by them.

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Frequently Asked Questions

Common questions about Annual Information Statement in Form 26AS for Transparency.

The Annual Information Statement (AIS) is a new form that replaces the existing Form 26AS. It is a comprehensive statement that contains various financial information about a taxpayer, such as tax deducted or collected at source, specified financial transactions, payment of taxes, pending and completed proceedings, and information received under tax treaties.

The Annual Information Statement aims to bring more transparency in the tax regime and curb tax avoidance practices. It is expected to widen the tax base and discourage taxpayers from hiding information about their financial transactions.

The Annual Information Statement will include information regarding tax deducted or collected at source, specified financial transactions (such as purchase, sale, investments, loans, etc.), payment of taxes, demand and refund, pending proceedings, completed proceedings, and information received under Double Taxation Avoidance Agreements (DTAAs).

Specified Financial Transactions (SFTs) are certain financial transactions that will be reported by specified persons in the Annual Information Report (AIR) and subsequently included in the Annual Information Statement. These transactions include purchase, sale or exchange of goods, property, rendering services, works contracts, investments, loans, and deposits.

The Principal Director-General of Income Tax (Systems) or the Director-General of Income Tax (Systems) or any person authorized by them shall upload the Annual Information Statement in Form 26AS within three months from the end of the month in which the information has been received.

The Annual Information Statement will be updated with the relevant information within three months from the end of the month in which the information has been received by the Income Tax authorities.

Yes, the Annual Information Statement will include personal details such as the Permanent Account Number (PAN), Aadhaar Number, Date of Birth/Incorporation, Mobile Number, Email Address, and Address of the taxpayer.

The Annual Information Statement will provide taxpayers with a comprehensive view of their financial transactions and tax-related information in one place. This will help them in ensuring accurate tax filings and avoiding any discrepancies or omissions.

The new Annual Information Statement in Form 26AS became effective from 1st June 2020, as per the notification issued by the Central Board of Direct Taxes (CBDT).

No, the old Form 26AS has been replaced by the new Annual Information Statement in Form 26AS. The rule that dealt with the old Form 26AS has been omitted, and a new rule (Rule 114I) has been inserted for the new Annual Information Statement.