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Tax Form 26AS gets comprehensive: Mutual fund dividends, off-market trades and foreign remittances to be captured

The I-T department is trying to populate as much financial data as possible and track people who do not pay due taxes

October 29, 2021 / 10:45 AM IST
Image: Shutterstock (Representative image)

Image: Shutterstock (Representative image)

Soon, the Form 26AS will carry details of your foreign remittances and off-market share transactions executed during the year.

The Central Board of Direct Taxes (CBDT) issued a notification on Wednesday stating that several additional details will now be populated in the annual information statement  in Form 26AS. This includes foreign remittances, interest on income tax refund, off-market transactions, dividend income earned through mutual funds and purchase of mutual fund units. “The tax department is trying to populate as much financial data as possible and will then track people who did not pay due taxes on such transactions,” says Karana Batra, Founder, Chartered Club, a tax consultancy firm.

Life to get tougher for tax evaders

For example, if you are an NRI who made profits from the sale of property in India last financial year, but failed to pay capital gains tax, you might have to respond to notices from the income tax department. “Such people cannot escape the tax net now. They will have to explain the reason why taxes were not paid. Honest tax payers, on the other hand, will have all the information in a consolidated format in a single document,” says Sudhir Kaushik, Co-founder and CEO, Taxspanner.com.