To provide more transparency to the taxpayers, the Central Board of Direct Taxes (CBDT) has introduced a new functionality in the Annual Information Statement (AIS) which will help them view the status of information confirmation process.
The Income Tax Return (ITR) filing deadline for the financial year 2023-24 (assessment year 2024-25) is July 31, 2024.
Rolling out the functionality, the I-T department has urged registered taxpayers to access their AIS through the e-filing portal of the department’s website – www.incometax.gov.in and review the AIS.
CBDT said the initiative by the department will ease compliance and enhance taxpayer services.
“In AIS, taxpayers have been provided with a functionality to furnish feedback on every transaction displayed therein,” the tax department said.
First, let’s know what AIS is.
What is AIS?
Introduced in November 2021, the AIS provides taxpayers with details of a large number of financial transactions undertaken by them which may have tax implications.
In simple terms, AIS is populated based on the financial data received from multiple information sources.
The statement is available on the official website of the income tax department. It is divided into two parts with Part A providing General Information of the taxpayers, while Part B has details of financial transactions such as tax deducted at source (TDS), tax collected at source (TCS), and specified financial transactions (SFTs) among others.
The objective of AIS is to enable taxpayers to hassle-free ITR filing, promote voluntary compliance and deter non-compliance.
How will new functionality in AIS help?
The new functionality in the AIS enables taxpayers to provide feedback on every transaction displayed therein. This feedback will help the taxpayer to comment on the accuracy of the information provided by the Source of such information.
In case of wrong reporting, the same is taken up with the Source for their confirmation, in an automated manner.
“Information confirmation is currently made functional with regard to information furnished by Tax Deductors/Collectors and Reporting Entities,” the department said.
The CBDT has rolled out the new functionality in AIS to display the status of the information confirmation process.
This will display, whether the taxpayer’s feedback has been acted upon by the Source, by either, partially or fully accepting or rejecting the same.
In case of partial or full acceptance, the information is required to be corrected by filing a correction statement by the Source. The following attributes shall be visible to the taxpayer for the status of Feedback confirmation from Source.
How to correct errors in Annual Information Statement:
A registered taxpayer can submit a corrected response if he/she feels that the information shown in AIS for the mentioned assessment year is inaccurate.
To correct errors in AIS, a taxpayer can follow the steps mentioned below:
Step 1: Log in to Income tax e-filing website – incometax.gov.in
Step 2: Under the ‘Service’ tab, click on ‘Annual Information Statement (AIS)’
Step 3: You will be directed to a new page where there will be two options – Taxpayer Information Summary (TIS) and Annual Information Statement (AIS)
Step 4: Tap on AIS
Step 5: You will be directed to a new page where you will see Part A and Part B of the AIS
Step 6: Select the information which is not correct
Step 7: Tap on ‘Optional’ to submit your feedback
Step 8: There will be seven options before you. With the help of the drop-down menu, select the option applicable
Step 9: Click on the Submit button.
The moment taxpayers submit feedback the status will be updated in real time on the website.
Why new functionality in AIS has been introduced?
Some taxpayers, in the past, had reported instances of the information provided being incorrect or incomplete. Though there was an option of getting the information corrected, the new initiative will further improve ease of compliance and enhance taxpayer services.
Link to article –
One thing that will make filing income tax returns different this year
