J.B. Mohapatra, former chairman of the Central Board of Direct Taxes, stated taxpayers used to battle to get this info earlier however now have it at their fingertips, and the identical is taking them in the direction of voluntary compliance.
What’s AIS?
The assertion comprises monetary transactions reported by banks, RTOs, inventory exchanges, and many others., with the Revenue Tax (I-T) division. AIS is split into two components: Half A comprises the taxpayer’s normal info, together with identify, PAN, Aadhaar quantity, date of delivery, and many others. Half B comprises info on tax deducted at supply (TDS), tax collected at supply (TCS), 53 specified monetary transactions (SFTs), fee of taxes, lease on plant and equipment, winnings from lottery, crossword puzzle or horse race, receipt of gathered steadiness 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 Model 2.0 of AIS in March 2022 that covers many extra transactions, together with curiosity, dividend, securities, mutual fund transactions, and many others. Within the 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. Additional, taxpayers can use the AIS cell utility to view the assertion and in addition add their suggestions.
To entry AIS, taxpayers ought to log in to the I-T e-filing web site www.incometax.gov.in. Below the providers tab, they need to choose AIS, which is able to redirect them to the AIS homepage. This display screen gives directions on each AIS and taxpayer info abstract (TIS). TIS is an easier model of AIS, which shows the knowledge on monetary transactions category-wise, and as unique and revised values, that are basically these values processed after the taxpayer’s suggestions is acquired, if any.
Submit logging in, a taxpayer can obtain the stated statements in PDF, JSON or CSV codecs for reconciliation goal.
How is AIS totally different from Type 26AS?
In comparison with Type 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 implies, even when tax has not been deducted on the curiosity earnings acquired on a hard and fast deposit, it’ll nonetheless be proven there. Equally, different transactions, sale, buy of fairness, mutual funds, dividend, and many others. with none such financial restrict are mirrored, which isn’t within the case of Type 26AS the place it comprises solely TDS, TCS, and SFTs however provided that these transactions have crossed a sure restrict. Basically, a small funding of ₹2,000 in a mutual fund systematic funding plan, or SIP, or perhaps a receipt of ₹50 as dividend earnings will likely be mirrored within the AIS. In different phrases, all of your monetary transactions are underneath the surveillance of the I-T division.
Although AIS is complete, taxpayers will nonetheless should reconcile all three —AIS, TIS, & Type 26AS—with their private data. As per the I-T division’s preliminary feedback, Type 26AS will live on till the brand new AIS is validated and is totally operational. Until such time, all three will co-exist.
What suggestions can a taxpayer submit?
Taxpayers who really feel that the knowledge mirrored in AIS shouldn’t be in consonance with their data can submit their response with the proper info. Suggestions could be given for all entries within the assertion, apart from private particulars in addition to monetary transactions. Taxpayers ought to submit such suggestions as quickly as they discover any mismatch. It may be executed on the ‘Non-compulsory’ tab supplied therein.
When taxpayers submit their suggestions, the identical will likely be up to date on AIS on a real-time foundation. These 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, will probably be processed after due course of. Within the case of high-risk suggestions, the identical will likely be flagged for searching for affirmation from the knowledge supply. Taxpayers ought to observe that flagging any mismatch or flawed info purely rests with them. If they don’t give any suggestions, then the unique info 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
Supply: Live Mint