Skip to main content

With more information than salary, interest income, tax paid, how Form 26AS will affect ITR filing?

The taxpayers were able to take the advantage so far, because the Income Tax Department used to get information related to just income from salary, interest on Bank FD and taxes paid


There are many salaried persons, who invest in stocks or even do daily trading but never reveal the information related to capital gain / loss in their Income Tax Return (ITR). The motive of not revealing the capital gain/loss in their return of income may be due to sheer ignorance, avoiding trouble of calculating the gains / losses, fear of filing more complicated ITR form than the ITR-1 or to suppress the information to avoid paying higher tax.

The taxpayers were able to take the advantage so far, because the Income Tax Department used to get information related to just income from salary, interest on bank fixed deposit (Bank FD) and taxes paid from the respective sources, which were revealed in Form 26AS.

But now on, the Department will also get information related to capital gains / losses, dividend income as well as interest on Post Office deposits and deposits in Non Banking Financial Companies (NBFCs), which will be revealed in the new format of Form 26AS.


This will help the ignorant taxpayers include such details in their ITRs, while making it difficult for tax evaders to suppress these details.

“Currently, the Income Tax return forms enables the taxpayers to auto populate details such as Personal Details including Name, PAN, Address, Bank Details, Tax payment and TDS details, etc. In the Budget 2021 proposals, the Finance Minister announced the pre-filling of Income Tax returns with respect to the details of capital gains from listed securities, dividend income, and interest from banks, post office, etc. for the purpose of easing the procedure of return filing,” said Dr. Suresh Surana, founder, RSM India.


But how will the Income Tax Department get all the information?

In accordance with the said Notification, the category of persons required to report such transactions are as follows:

Capital gains on transfer of listed securities or units of Mutual Funds

  • Recognised Stock Exchange such as BSE, NSE, etc.
  • Depository defined Depositories Act, 1996
  • Recognised Clearing Corporation
  • Registrar to an issue and share transfer agent registered under SEBI

Dividend Income

  • Company distributing such dividend

Interest Income

  • A banking company or a co-operative bank covered under the Banking Laws
  • Post Master General defined under the Indian Post Office Act, 1898
  • Non-banking financial company which holds a certificate of registration under the RBI Act, 1934

How will it affect the taxpayers?T

"he current provisions u/s 285BA of the IT Act already require companies issuing shares, trustees of mutual funds, etc to furnish the Statement of Financial Transaction for certain transactions in shares and mutual funds, etc. amounting to 10 lakh or more. As such, due to the broad coverage of data in the Annual Information Statement (AIS), the taxpayer needs to ensure that all details of income are appropriately considered while filing their tax returns. Due to the data analytics used by the Income tax department, any tax escapement by the taxpayer, either advertently or inadvertently, would be more closely scrutinised,” said Dr. Surana.

if u have any queries/feedback click on this ..and drop ur msg




Thanks for reading,


🖋sivasankarreddyA


ðŸ“Ļsankarasr9@gmail.com

Comments

Post a Comment

Popular posts from this blog

Income Tax Department Grapples with 9.7 Million ITR Backlog, Taxpayers Await Refunds

The Income Tax (I-T) Department is facing a significant backlog of over 9.7 million verified income tax returns (ITRs) for the Assessment Year (AY) 2025-26, according to the latest official figures. As of Sunday, November 2, 2025, while the department has successfully processed a substantial 6.72 crore (67.2 million) ITRs, a staggering 97,07,702 verified returns remain in the queue, causing anxiety among taxpayers, especially those expecting refunds. The data, sourced directly from the Income Tax Department’s official portal and reflected in a screenshot from November 2, reveals the scale of the task. The department has received 8,01,81,924 filed returns, of which 7,69,31,814 have been verified by taxpayers. The gap between verified and processed returns constitutes the current backlog. (Screenshot of the Income Tax Department portal showing ITR statistics as on November 2, 2025) This delay is particularly troubling for individuals who filed their returns around the July 31...
Post a Comment
Read more

Form 10IEA Filing Requirements

Default Regime is New Regime for ITR Filing Form 10IEA Filing Requirements  ITR 1 - No Requirements to File Form 10IEA to Opt for old regime or re-entering to New Regime (No Switching Restrictions) ITR 2 - No Requirements to File Form 10IEA to Opt for old regime or re-entering to New Regime (No Switching Restrictions) ITR 3 - Form 10IEA Filing mandatory when opting for old regime and if opting again for New Regime in subsequent Year  (if opted old regime for one year and then opted for new regime in subsequent year then not eligible to opt old regime again means one time Switching option is there (Need to file Form 10IEA maximum 2 times only, First when you opt for old regime and Second when you opt for new regime in subsequent year and leaving old regime) (If Form 10IEA already filed for old regime for particular year then cant opt new regime in such year and vice-versa) ITR 4 - Form 10IEA Filing mandatory when opting for old regime and if opting again for New Regime in subse...
Post a Comment
Read more

ðŸšĻ ITR REFUND ALERT – READ THIS BEFORE 31 DEC ðŸšĻ

Thousands of taxpayers are suddenly receiving this message 👇 👉 “Your ITR refund is on hold due to risk management discrepancies. File revised return within a week.” ðŸ’Ą Irony? ⏳ Income Tax Dept took 4+ months to identify the issue ⏰ And now gives taxpayers barely a few days to fix it ❓ Why no detailed email received? Because most of these are system-generated risk flags. Sometimes:  • Email goes to old registered ID • Lands in spam • Or only SMS/portal alert is triggered 👉 Always check the ITR portal → e-Proceedings / Worklist 📌 What does “ITR processing on hold” mean? It does NOT mean notice or scrutiny ❌ It means:  ðŸ”đ Refund claim looks unusual compared to data available with department ðŸ”đ Return is paused before issuing refund ðŸ”đ Taxpayer is given a chance to self-correct ⚠️ Common reasons refunds get flagged : ðŸ”đ TDS/TCS mismatch TDS claimed in ITR is higher than what appears in Form 26AS (employer/bank hasn’t deposited or corrected data yet) ðŸ”đ AIS vs ITR income mismat...
Post a Comment
Read more