Every taxpayer by now can be accustomed to Form 26AS, which primarily comprises TDS/TCS, tax fee knowledge for a selected taxpayer. Over the years, Form 26AS was reformed to incorporate extra particulars like refund and curiosity on refund, high-value transactions, and many others. In order to advertise transparency and simplifying the tax submitting course of, CBDT has amended Section 285BB of the Income Tax Act, 1961, learn with Rule 114-I of the Income Tax Rules, 1962. The earnings tax division has thus launched the brand new Annual Information System (AIS), which is able to present a complete profile of the taxpayer.
You can entry AIS at www.incometax.gov.in/. The file downloaded will likely be password protected with an ordinary password i.e., PAN in capital letters adopted by date of delivery in ddmmyyyy format. AIS has two components—Part A comprises basic info viz., identify of the taxpayer, date of delivery, PAN, masked Aadhar quantity, cell quantity, e-mail handle and handle of taxpayer. Part B comprises the next heads:
· TDS/TCS info: Under this tab, info associated to tax deducted/collected at supply is displayed. This will embody the quantity of taxable earnings, nature of earnings, and many others.
· Statement of economic transaction (SFT) info: This tab shows monetary transactions like curiosity from financial savings checking account, curiosity from deposits, dividend acquired from securities/mutual funds, and many others.
· Payment of taxes: This tab will embody particulars of taxes paid below totally different heads.
· Demand and refund: This tab will show refund particulars like nature of refund, quantity of refund, and many others. This tab can also be anticipated to show particulars regarding demand; nevertheless, this facility has not been launched but.
· Other info: This tab will show info collected for different sources like particulars of annexure II of wage, curiosity on tax refund, and many others.
The info in AIS will likely be used to generate a simplified Taxpayer Information Summary (TIS). TIS will show summarized info and values for taxpayers. Though AIS is now obtainable on the earnings tax portal, presently Form 26AS will proceed to be obtainable on TRACES web site. In case there may be variation between TDS/ TCS info between Form 26AS and AIS, taxpayer ought to depend on the data in Form 26AS.
AIS additionally comes with a facility for the taxpayer to offer suggestions utilizing AIS utility on energetic info displayed below TDS/TCS info, SFT info or different info. AIS will show each reported worth and modified worth (i.e., worth after contemplating taxpayer suggestions) below every part.
The goals of AIS are to show full info to the taxpayer with a facility to seize on-line suggestions, promote voluntary compliance and allow pre-filling of tax return and deter non-compliance. The info obtainable within the AIS contains info presently obtainable with the earnings tax division. There could also be different transactions regarding the taxpayer which aren’t presently displayed and therefore, taxpayers ought to examine all associated info and report full and correct info within the tax return.
This is a welcome step contemplating the compliance necessities and accuracy anticipated from the taxpayers. Having most of your taxable monetary info at one place is useful and ensures higher protection for tax reporting functions. Currently, the earnings tax portal has the AIS obtainable for monetary yr 2020-21. The due date to file tax return for monetary yr 2020-21 is 31 December 2021.
This digital journey by the tax division places increased onus on the taxpayers to make sure that they evaluation this info recurrently and report the proper earnings/tax particulars of their tax returns, to keep away from notices and enquiries from the tax division.
Amarpal S. Chadha is tax companion and India mobility chief, EY.
(With contributions from Navneet Golchha, senior tax skilled, EY).
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