Income tax return: What Annual Information Statement (AIS) means for taxpayers?
ITR submitting: The final date for revenue tax return or ITR submitting for AY 2021-22 is thirty first December 2021. So, taxpayers wanting ahead to ITR submitting on-line are suggested to examine some modifications made by the revenue tax division. Availability of Annual Information Statement (AIS) is one in all them. The Central Board of Direct Taxes lately made an announcement on this regard placing filled with curiosity among the many taxpayers.
Speaking on what this Annual Information Statement means for a taxpayer, Mumbai-based tax and funding professional Balwant Jain stated, “AIS is nothing but a statement of financial transactions furnished to it by various entities in respect a taxpayer collated by the tax department based on the PAN.” Jain stated that earlier than this new announcement in regard to AIS, Form 26AS used to hold particulars in regard to taxes deducted/collected from one’s revenue and particulars of taxes paid by the taxpayer straight. Form 26AS additionally has the small print of revenue tax refunds together with particulars of curiosity granted on such refund to the taxpayer. Now, after inception of AIS, the revenue tax division intends to develop the scope of particulars that will be accessible to the taxpayer which can assist the taxpayer in submitting their ITR extra precisely.
What’s new on this Annual Information Statement (AIS)
“This AIS has details of all the transaction which are reported by certain entities under Annual Statement of Financial Transactions which they are required to furnish to the tax department. These entities includes banks, registration offices, regional transportation office, authorized dealers dealing foreign exchange, stock exchanges, mutual funds, companies issuing shares and debentures, RBI and all the taxpayers who are liable to deduct and collect tax at source,” stated Balwant Jain.
So, from now onwards, any transaction linked to a taxpayer’s PAN might be simply monitored on-line by the federal government. So, whereas submitting ITR, a taxpayer is suggested to undergo one’s AIS and report all high-value money and non-cash transactions and any type of mismatch between the federal government information and the ITR date filed by the taxpayer. It contains bank card, shares, mutual funds, debentures, and bonds associated transactions as properly.
How AIS is useful for an revenue tax payee
On how a taxpayer will profit from this AIS; Amit Gupta, MD at SAG Infotech stated, “The income tax department has created an Annual Information Return (AIR) statement of financial transactions to trace high-value transactions of taxpayers. Tax officials will gather details against unusual high-value transactions on this basis in a particular financial year. In case any expense or transaction has been listed as a high-value transaction, verify the AIR section of your Form 26AS. PART -E of Form 26AS combines details about the high-value financial transactions.”
Whose particulars will likely be there in AIS
Advising taxpayers to take revenue tax division’s AIS particulars significantly throughout ITR submitting; Balwant Jai stated, “An income tax payee’s details will reflect in the AIS only if the aggregate amount of the transaction falling in that category and with that entity exceeds the threshold limit prescribed.”
How to deal with discrepancy in AIS
If there’s any transaction reported in a single’s AIS during which the taxpayers has not executed, in that case the taxpayer can report such transactions on-line and get its AIS modified. Failing to this will likely land you in bother.
Disclaimer: The views and proposals made above are these of particular person analysts or private finance firms, and never of Mint.
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