monthly updates

11) In Aug 2020, expenses more than a specified limit on hotels, life insurance premiums, property tax, etc would now be reported in the new Form 26AS. Also faceless assessment of Income Tax returns has been introduced.

Particulars Old New
Taxation on expenses
  • Expenses on hotels, life insurance premiums, health insurance premiums, property tax, electricity bill etc. were not reported or visible in Form 26AS
The below expenses would now be reported inForm 26AS
  • More than Rs 20,000/- as hotel expenses
  • More than Rs 20,000/- as property tax
  • More than Rs 20,000/- as health insurance premiums
Faceless Assessment
  • Income tax returns would be scrutinised and notices sent to cases where there are discrepancies.
  • From Aug 13, 2020, under faceless scrutiny assessment, a central computer randomly picks up returns for scrutiny and allotted to a team of officers for scrutiny.
  • Notice is sent for these randomly selected cases in case of any discrepancy and such notices need to be responded to electronically.

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