Tax Talk- Annual Information Statement: Know what it reveals

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Form 26AS at the TRACES portal will stay in area till the brand new AIS is tested and turns into absolutely operational.

Form 26AS changed into basically an annual tax declaration that contained records on taxes already paid through a taxpayer consisting of tax deducted or accumulated at source, improve tax payments, and self-evaluation tax.

The Finance Act 2020 inserted a replacement Section 285BB to revise type 26AS and incorporate further information such as details of unfinished or completed revenue enhancement proceedings, the standing of income tax demand and refund, fixed money transactions undertaken by a taxpayer.

The revenue enhancement Department has any extended a replacement Annual data Statement (AIS) to switch existing type 26AS and supply more comprehensive information to a payer.

What will the new AIS contain?

The new AIS shall embody additional information concerning sure transactions and financial gains together with interest and dividend income, securities transactions, open-end fund transactions, foreign remittal information.

In addition, a comprehensive split of wage income of a taxpayer including allowances, deductions/ exemptions claimed, any income underneath the pinnacle “other sources” and “house property” and also the final liabilities computed by the leader shall conjointly form a vicinity of AIS. 

The new AIS also promulgates a facility that enables a payer to create modifications if any data contained in that is misplaced. That is, if the taxpayer finds any information to be incorrect, or concerning another person/year, duplicate, etc., he will submit feedback online or maybe offline by exploiting the “AIS utility”.

The worth derived after the elimination of duplicate or redundant information and after considering the taxpayer’s feedback are mirrored in the payer data outline (TIS).

Accordingly, the ultimate information shown within the TIS can alter the pre-filling of returns. To access the new AIS, taxpayers will be needed to go to the new revenue enhancement e-filing portal and click on the link “Annual data Statement (AIS)” underneath the “Services” tab.

The new type will be out there for transfer in many formats together with PDF. Besides, the provision of type 26AS on the TRACES portal will stay in situ till the new AIS is valid and becomes entirely operational.

Just in case there’s any inconsistency between the TDS/TCS information or the main points of tax paid as displayed in type 26AS which showing in AIS on Compliance Portal, the department has suggested taxpayers consider the knowledge displayed on the TRACES portal for filing of ITR together with different tax compliance purposes.

However, can the new AIS benefit? The provision of nearly all tax-related information and reportable transactions in an exceedingly single statement will facilitate ease within the filing of revenue enhancement returns for taxpayers.

Pre-population, likewise as pre-filing certification, will enormously facilitate taxpayers in making certain the accuracy of their form submissions. This can, in turn, reduce incidences of scrutiny assessments. Concerning the taxpayers’ affairs will inherently discourage suppression of fabric information by taxpayers, thereby widening the tax base.

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