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The new AIS is expected to make the taxpayer's task of filing ITR easier and faster, points out Bindisha Sarang.
The income tax department has rolled out the new Annual Information Statement (AIS) on its compliance portal (incometax.gov.in), which provides comprehensive information to taxpayers on their financial transactions.
The purpose of the new AIS is to make it easier for taxpayers to file their returns.
The new AIS also comes with a facility to provide online feedback.
Moiz Rafique, managing partner, Privy Legal Services LLP, says, "The income tax department prepares and publishes an annual statement of the taxpayer's financial transactions. The purpose of this report is to make all eligible taxpayers pay taxes systematically, thereby reducing the possibility of tax evasion."
More details captured
The new AIS will contain more information than the existing Form 26AS, which primarily provides information on Tax Deduction at Source (TDS) and Tax Collected at Source (TCS) that has been deposited, and financial transactions exceeding certain prescribed threshold limits.
Sandeep Bajaj, managing partner, PSL Advocates & Solicitors says, "The new AIS includes additional information relating to interest, dividend, securities transactions, mutual fund transactions, foreign remittance, etc.
The reported information will be processed to remove duplication."
Even if a taxpayer receives Rs 500 from a mutual fund, that will be reflected in the new AIS.
This AIS will also contain a taxpayer information summary (TIS), which will show the aggregated value of his financial transactions.
The taxpayer can use these aggregated values to file his income-tax return (ITR).
The new AIS is expected to make the taxpayer's task of filing ITR easier and faster.
Kapil Rana, founder & chairman, HostBooks says, "He can import the information contained in the AIS directly to his ITR form through the pre-filled facility."
Taxpayers can offer feedback
If there is a mismatch between a taxpayer's financial transaction and the data reported in the AIS, he can offer feedback on it.
Rana says, "Unlike Form 26AS, information shown in the AIS can be modified. If a taxpayer feels that the information in the AIS is incorrect, relates to another person or year, or there is duplication, there is a facility for submitting online feedback."
Multiple types of information can be submitted in bulk through the AIS Utility.
Rafique says, "You may suggest numerous changes at one go."
The reported value and value after feedback will be shown separately in the AIS.
Rana says, "To modify or deny the information, the source of the information should be contacted for confirmation. If the taxpayer has already filed the ITR, and some information has not been included in it, the return should be revised to reflect the correct information."
Based on the feedback provided in the AIS, the derived information in TIS will get updated in real time.
Aditya Chopra, managing partner, Victoriam Legalis- Advocates & Solicitors says, "The incorporation of a process for submitting feedback and comments will help not only taxpayers but also the concerned authorities in screening and removing incorrect information within reasonable time."
Six pre-defined responses are available under the feedback tab: Information is correct, income is not taxable, information is not fully correct, information relates to other PAN/year, information is duplicate or included in other information, and information is denied.
Naveen Wadhwa, deputy general manager, Taxmann says, "If the taxpayer chooses 'information related to other PAN/year', then he must mention details of the other PAN and relationship with that person."
Points to keep in mind
Experts say the option for taxpayers to submit feedback in case of information mismatch is a good initiative.
Wadhwa says, "This facility was not available earlier, and taxpayers often struggled to find a solution to the mistakes in their Form 26AS."
Finally, taxpayers need to be cautious while using the AIS.
Ashok Shah, partner, NA Shah and Associates says, "Carefully review each transaction in the AIS. Request for modification wherever you find some erroneous information. If you fail to do so, you could face unnecessary hardship."
Wadhwa adds, "A taxpayer could get a notice if the information filed in his ITR doesn't match the information contained in the AIS."
Feature Presentation: Aslam Hunani/Rediff.com
