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Tag: Annual information statement

  • ITR submitting ends tomorrow. A quarter-hour information to file your returns

    Only at some point is left for earnings tax return (ITR) submitting because the earnings tax division has clearly acknowledged in a number of bulletins that there might be no extension of the ITR due date for FY 2022-23 (AY 2023-24). Therefore, if in case you have not filed but your earnings tax return you must file it quickly as doable earlier than the tip of the deadline i.e July 31.

    According to knowledge shared by the Income Tax Department, a report variety of taxpayers have already filed their ITRs for FY 2022-23 (AY 2023-24). Also, a lot of taxpayers have already acquired refunds.

    But a number of lots of of salaried taxpayer who’ve but not filed their earnings tax returns for the FY 2022-23. Not submitting ITR earlier than the due date can have a number of penalties. If you miss the deadline and file return after the due date, you’ll have to pay a late payment. Non-furnishing or late furnishing of return of earnings attracts curiosity beneath part 234A. Also, delay in furnishing return of earnings attracts charges beneath Section 234F, which varies from ₹1,000 to ₹5,000. Therefore, it’s endorsed to file returns earlier than the tip of the due date.

    If you might be submitting earnings tax returns your self, here’s a step-by-step information to keep away from any mistake:

    Important paperwork wanted

    Though, these days, the e-filing portal gives pre-filled ITR kinds, however some incomes, comparable to capital good points, should be crammed manually. Following are among the vital paperwork you should hold helpful whereas submitting your earnings tax returns.

    Form 16Form 16AForm 26ASCapital good points statementsTax saving funding proofPAN CardMedical insurance coverage assertion, if utilized Step-by-step information to submitting ITRGo to the Income Tax e-Filing portal.Log in to the portal by coming into your consumer ID (PAN), Password, and Captcha code.Click on the ‘e-File’ menu and click on the ‘Income Tax Return’ hyperlink.Choose the Income Tax Return (ITR) kind. As you’re a salaried taxpayer having Form 16, you should use both ITR-1 or ITR-2.After that, select the evaluation yr (AY) for which you need to file the ITR.  You ought to select the evaluation yr 2023-24.Validate all the info entered within the kind, and submit.After submitting your return, e-verify it utilizing any of the obtainable choices comparable to Aadhaar OTP, and so forth.Upload, e-verify return

    The final step is to re-check all of your particulars and add the shape. However, your job is just not full till you confirm your return. 

     

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    Updated: 30 Jul 2023, 06:51 PM IST

  • ITR submitting: How to right error in Annual Information Statement (AIS)

    The final date for submitting of earnings tax return (ITR) for AY 2022-23 is 31 July. So, taxpayers are suggested to verify the Annual Information Statement (AIS) totally as some folks have reported discrepancies in the identical. So, all these people who find themselves ready for the final minute to file their returns on-line, please just remember to tally the data in AIS and report any type of mismatch between the federal government information and the ITR information filed by you.

    What is Annual Information Statement (AIS)

    The Annual Information Statement (AIS) was launched in November final 12 months. It has two elements – taxpayer info abstract (TIS) and different is correct AIS detailing the data contained in TIS.

    This AIS has particulars of all of the transactions that are reported by sure entities. These entities contains banks, registration workplaces, , inventory exchanges, mutual funds, firms issuing shares and debentures, RBI and all of the taxpayers who’re liable to deduct and acquire tax at supply (TDS). The Income tax division launched a a lot improved Version 2.0 of AIS in March 2022 that covers many extra transactions,

    What do taxpayers need to do if the data in AIS is wrong?

    The new AIS will be accessed by clicking on ‘Annual Information Statement (AIS)’ underneath the ‘Services’ tab on the brand new earnings tax e-filing portal (incometax.gov.in).

    Amit Gupta, MD, SAG Infotech says when taxpayers really feel the data mirrored in AIS just isn’t correct, they will submit a corrected response. The assertion will be evaluated for all entries, together with private info and monetary transactions.

    “Feedback ought to be submitted by taxpayers as quickly as they discover any inconsistency. On the ‘Optional’ tab the identical will be completed,” stated Gupta.

    Steps to right the errors in AISLog on the brand new Income tax e-filing portal (incometax.gov.in)Select ‘Annual Information Statement (AIS)’ underneath the ‘Services tab’.Now, two choices can be seen to you – Taxpayer Information Summary (TIS) and Annual Information Statement (AIS). Click on AIS.After clicking on AIS, you will note Part A and Part B of AIS in your display. Now, choose the data that’s not right. Select ‘Optional’ to submit your suggestions.There can be 7 choices obtainable to you. From the drop-down menu, choose the choice relevant.Now, click on on Submit

    Amit Gupta says that as quickly as taxpayers submit suggestions, its standing is up to date on AIS in real-time. TIS will pre-fill the ITR draft with the revised values filtered in TIS.

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    First article

  • Tax returns: All about annual data assertion 2.0

    J.B. Mohapatra, former chairman of the Central Board of Direct Taxes, mentioned taxpayers used to wrestle to get this data earlier however now have it at their fingertips, and the identical is taking them in direction of voluntary compliance.

    What is AIS?

    The assertion incorporates monetary transactions reported by banks, RTOs, inventory exchanges, and so on., with the Income Tax (I-T) division. AIS is split into two components: Part A incorporates the taxpayer’s basic data, together with identify, PAN, Aadhaar quantity, date of delivery, and so on. Part B incorporates data on tax deducted at supply (TDS), tax collected at supply (TCS), 53 specified monetary transactions (SFTs), cost of taxes, hire on plant and equipment, winnings from lottery, crossword puzzle or horse race, receipt of amassed stability from provident fund (PF), curiosity from bonds, authorities securities, offshore fund, shares of Indian firms, insurance coverage fee, and demand and refund, amongst others.

    The I-T division launched a a lot improved Version 2.0 of AIS in March 2022 that covers many extra transactions, together with curiosity, dividend, securities, mutual fund transactions, and so on. In the brand new model, the division has used information analytics to seize non-PAN transaction information, eradicated duplicate entries and generated a simplified TIS for ease of submitting return for taxpayers. Further, taxpayers can use the AIS cellular software to view the assertion and likewise add their suggestions.

    To entry AIS, taxpayers ought to log in to the I-T e-filing web site www.incometax.gov.in. Under the providers tab, they need to choose AIS, which can redirect them to the AIS homepage. This display supplies directions on each AIS and taxpayer data abstract (TIS). TIS is an easier model of AIS, which shows the data on monetary transactions category-wise, and as authentic and revised values, that are basically these values processed after the taxpayer’s suggestions is acquired, if any. 

    Post logging in, a taxpayer can obtain the mentioned statements in PDF, JSON or CSV codecs for reconciliation function.

    How is AIS  completely different from Form 26AS?

    Compared to Form 26AS, AIS is extra complete whereby the transactions will likely be mirrored no matter whether or not relevant tax has been deducted or not.  This means, even when tax has not been deducted on the curiosity revenue acquired on a hard and fast deposit, it’s going to nonetheless be proven there. Similarly, different transactions, sale, buy of fairness, mutual funds, dividend, and so on. with none such financial restrict are mirrored, which isn’t within the case of Form 26AS the place it incorporates solely TDS, TCS, and SFTs however provided that these transactions have crossed a sure restrict. Essentially, a small funding of ₹2,000 in a mutual fund systematic funding plan, or SIP, or perhaps a receipt of ₹50 as dividend revenue will likely be mirrored within the AIS. In different phrases, all of your monetary transactions are beneath the surveillance of the I-T division.

    Though AIS is complete, taxpayers will nonetheless need to reconcile all three —AIS, TIS, & Form 26AS—with their private information. As per the I-T division’s preliminary feedback, Form 26AS will live on till the brand new AIS is validated and is totally operational. Till such time, all three will co-exist.

    What suggestions can a taxpayer submit?

    Taxpayers who really feel that the data mirrored in AIS will not be in consonance with their information can submit their response with the proper data. Feedback might be given for all entries within the assertion, moreover private particulars in addition to monetary transactions. Taxpayers ought to submit such suggestions as quickly as they discover any mismatch. It might be achieved on the ‘Optional’ tab offered therein. 

    When taxpayers submit their suggestions, the identical will likely be up to date on AIS on a real-time foundation. Those revised values filtered in TIS will likely be pre-filled within the yet-to-file draft of ITR. 

    In a case the place the suggestions is modified or denied, it will likely be processed after due course of. In the case of high-risk suggestions, the identical will likely be flagged for looking for affirmation from the data supply. Taxpayers ought to notice that flagging any mismatch or unsuitable data purely rests with them. If they don’t give any suggestions, then the unique data mirrored within the AIS will likely be assumed to be appropriate, and in case of any mismatch, the division could insist that the taxpayer explains the discrepancies.

    Prabhakar Okay. S. is founder and CEO, Shree Tax Chambers

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    First article

  • Income tax: What Annual Information Statement (AIS) means for you?

    The Central Board of Direct Taxes not too long ago introduced availability of Annual Information Statement (AIS) to the taxpayer. There is throughout curiosity within the minds of taxpayer as to what it’s and what implications it has for the tax payers. Let us focus on.

    What is AIS

    Till now we have now a 26AS assertion which primarily supplies the main points as regards taxes deducted/collected out of your earnings in addition to the main points of taxes paid by you instantly. It additionally has the main points of earnings tax refunds together with particulars of curiosity granted on such refund to you. Now the federal government intends to broaden the scope of particulars which might be accessible to the taxpayer which is able to assist the taxpayer in submitting their earnings tax returns extra precisely. It is that this objective of higher compliance by the taxpayer that the federal government has launched the AIS. AIS is nothing however an announcement of economic transactions furnished to it by numerous entities in respect a taxpayer collated by the tax division based mostly on the PAN.  

    The AIS has two parts. One is taxpayer info abstract (TIS) and different is correct AIS detailing the knowledge contained in TIS. 

    What are the main points accessible in your AIS

    There is a basic notion being created that particulars of all of your monetary transactions can be found with the federal government and all these transactions will get mirrored within the AIS, which isn’t true. 

    In addition to the main points that are presently accessible to you in kind No. 26AS, the AIS has particulars of all of the transaction that are reported by sure entities underneath Annual Statement of Financial Transactions which they’re required to furnish to the tax division. These entities contains banks, registration places of work, regional transportation workplace, approved sellers dealing overseas alternate, inventory exchanges, mutual funds, corporations issuing shares and debentures, RBI and all of the taxpayers who’re liable to deduct and acquire tax at supply. The transactions which get reported embody particulars of assorted earnings acquired by you want dividends, curiosity, hire, skilled price and so on. Likewise, transactions for buy and sale/redemption of shares and items of mutual funds past sure threshold in mixture in the course of the yr additionally get reported. This additionally contains buy of property registered above thirty lakh rupees. It additional contains transactions with banks like deposit of money, buy of drafts, cost of bank card dues, fastened deposits made and so on.

    There are information stories that particulars of your saving checking account curiosity may even be accessible underneath AIS which I doubt because the banks and publish places of work presently should not required to furnish the main points of saving financial institution curiosity to the earnings tax division as no tax is required to be deducted until you’re a non-resident the place the banks deduct tax even on saving checking account curiosity.

    Please notice that your particulars will mirror within the AIS provided that the combination quantity of the transaction falling in that class and with that entity exceeds the brink restrict prescribed. 

    What it’s a must to do?

    In case you discover that among the transactions that are mirrored within the AIS don’t belong to you, you have got choice to report such transactions on-line and the AIS will get modified to that extent whereas retaining the unique info additionally together with worth reported by you. In case you have got been investing in mutual funds collectively, the worth of mutual fund transactions reported in your AIS shall be increased because the mutual funds are required to report the worth of transactions in opposition to the title of all of the holders and to that extent it’s duplication of information. In such a case you needn’t fear as such distinction is explainable. However, if there are transaction of the character which you didn’t enter into, report such inaccuracy on-line to safeguard your curiosity.

    Way ahead in AIS

    Uploading of AIS in your account is a part of “Project Insight” underneath which the earnings tax division intends to verify tax evasion and can use synthetic intelligence to detect circumstances of tax evasion. In future the earnings tax division can also ask numerous entities to report the main points of money transactions made with them. For instance, the division could ask on-line distributors like Amazon and Flipcart to report the main points of money transaction above sure threshold restrict even when the PAN variety of the patrons should not accessible with them. Based on the handle and title the earnings tax division will be capable of observe such transactions to your PAN and embody such transactions in your AIS. So those that cope with black cash have to fret about and nothing to fret about for the sincere taxpayers.

    As and when the AIS system stabilizes the earnings tax division could discontinue kind No. 26 AS as the main points presently accessible in 26AS are already included in AIS.

    Balwant Jain is a tax and funding knowledgeable and might be reached on [email protected] and @jainbalwant on Twitter.

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  • Annual Information Statement: Dos and Don’ts which the taxpayer should observe

    The revenue tax division just lately rolled out a brand new annual data assertion (AIS) on its portal that gives a complete view of taxpayer data and an choice to submit suggestions.

    The new AIS consists of further data associated to curiosity, dividend, securities transactions, mutual fund transactions and overseas remittance data.

    The revenue tax division has shared some dos and don’ts which the taxpayer should observe to have a seamless expertise within the AIS utility.

    “Caveat! There are some Do’s & Don’t’s which the taxpayer should observe to have a seamless expertise within the AIS utility,” revenue tax division stated in a tweet.

    Dos

    -Use the most recent model of the AIS utility

    -Give suggestions on the knowledge displayed in AIS

    -Check your TIS to verify the values used for prefiling of returns.

    -View your AIS frequently.

    -Use AIS utility to view AIS and supply suggestions if the transactions depend is excessive.

    Don’ts

    -Don’t use the outdated model of AIS JSON for making ready suggestions by utility

    -Don’t present incorrect suggestions on the AIS data

    -Don’t share your e-filing credentials with anybody

    The new AIS additionally gives for a simplified taxpayer data abstract (TIS), which exhibits aggregated worth for the taxpayer for the benefit of submitting returns.

    If the taxpayer submits suggestions on AIS, the derived data in TIS will probably be robotically up to date in real-time and will probably be used for pre-filling of return which shall be carried out in a phased method.

     

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  • Annual data assertion could make tax submitting simpler

    Tax submitting is about to get simpler as taxpayers can view tax-related data on their varied incomes at one place within the new annual data assertion (AIS).

    The revenue tax division launched AIS this week on its portal that not solely incorporates a complete outlay of the taxpayer data but additionally permits the taxpayer to submit suggestions on the supplied data.

    If a taxpayer finds any data within the AIS to be incorrect, duplicated or belonging to a distinct monetary 12 months, he/she will be able to report the identical within the type of a suggestions.

    “The taxpayers are requested to view the data proven in annual data assertion (AIS) and supply suggestions if the data wants modification,” the Central Board of Direct Taxes (CBDT) said.

    Which data is included?

    The AIS captures data on virtually all monetary transactions carried out within the earlier monetary 12 months.

    It consists of curiosity earned on financial institution financial savings account, curiosity on fastened and recurring deposits, dividend payout, buy of securities and items of mutual funds, sale proceeds of securities and mutual funds, off-market credit score transactions, overseas remittances and wage revenue, amongst different issues.

    The thought is to offer taxpayers a complete assertion on their transactions that they’ll seek advice from whereas submitting their revenue tax returns.

    “On the one hand, the AIS is predicted to be helpful to taxpayers in giving particulars of all of the transactions, the place their PAN is reported by involved reporting entity and put together them prematurely for vital dialogue with tax authorities. On the opposite hand, this AIS gives a complete data database to the tax authorities concerning transactions undertaken by the taxpayer at a single place,” stated Shailesh Kumar, accomplice, Nangia & Co. LLP.

    Since taxpayers can test the data beforehand and get incorrect data modified earlier than submitting their ITR, it additionally reduces the trouble of coping with enquiries from the IT division for the smallest of errors.

    In the previous few years, the CBDT has revamped ITR varieties to hunt detailed disclosures and elevated the scope of data in Form 26AS to plug tax leaks. Now with the AIS, there is not going to be a lot scope for taxpayers to cover revenue of their ITR returns.

    “With roll-out of AIS, taxpayers might want to evaluate their AIS now and again and be careful for any transaction reported of their AIS. In case they imagine any incorrect data has been reported of their AIS, they need to attain out to the involved reporting entity instantly and preserve vital documentation to show that such incorrect transaction reported of their AIS doesn’t belong to them,” stated Kumar.

    The CBDT official assertion has advised that AIS could step by step exchange Form 26AS. For this evaluation 12 months, nevertheless, you must tally data supplied in each Form 26AS and AIS. If there may be any variation between data in AIS as proven on the IT web site and Form 26AS on TRACES portal, the taxpayer ought to take into account the latter, stated the CBDT.

    Where to seek out the AIS?

    The AIS could be downloaded from the revenue tax e-filing portal (incometax.gov.in). Once you login, go to the providers tab and choose AIS possibility from the dropdown record.

    Apart from the detailed AIS, the portal may even present you tax data abstract (TIS), which incorporates the mixture worth for use throughout tax submitting.

    “TIS reveals the processed worth (i.e. the worth generated after de-duplication of data primarily based on pre-defined guidelines) and derived worth (i.e. the worth derived after contemplating the taxpayer suggestions and processed worth). If the taxpayer submits suggestions on AIS, the derived data in TIS will probably be mechanically up to date in actual time,” the CBDT stated in its assertion.

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