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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