Resolve inaccuracies in AIS promptly with status update tool

 

            Resolve inaccuracies in AIS promptly with status update tool

The income-tax (I-T) department has added a new feature to the Annual Information Statement (AIS). Through this new feature, taxpayers can view the status of information verification process. This real-time status update feature in AIS enhances taxpayer convenience and transparency.

What is AIS?

AIS is a comprehensive report that captures a taxpayer’s financial transactions throughout a financial year. It includes detailed information like salary, interest from savings accounts, dividends, capital gains etc. It also has details of tax deductions, investments, and expenditures, including high-value transactions such as property purchases and large cash deposits.

AIS aims to provide tax-payers with a consolidated view of their financial activities, ensuring greater transparency and aiding in accurate filling of tax return. AIS’s new real-time feedback mechanism allows taxpayers to dispute any information that may have been filed incorrectly by the reporting agencies. It shows whether the feedback has been shared with the reporting source, the date it was shared, the date the source responded, and the source’s response. This feature enhances transparency and helps tax-payers know if their feedback has been addressed and if any corrections are needed.

This feature can help avoid controversies on amounts reported by taxpayers in their respective tax returns.

 

Difference between AIS and Form 26AS

Form 26AS can be called a subset of AIS. While AIS and Form 26AS seem similar, they are different in that the former is a record of all the significant transactions reported by the reporting agencies. The latter is a record of incomes earned on which taxes have been deducted by the payers and deposited to the credit of the payee’s PAN.

 

Errors to watch out for in AIS

In AIS, data from various sources, including brokers, banks, and financial institutions is compiled. This diversity of data sources can lead to discrepancies, inaccurate reporting, or duplication.

Duplicate entries are common. Transactions might be reported multiple times. Ensure each transaction is accounted for only once.

Verify that the amounts reported in AIS match your actual financial records. In the past, there have been instances where the interest from a joint savings account has been reflected in the AIS of both taxpayers. There have also been instances of duplicate entries for dividends, interests.

Transactions are at times misreported. Ensure that transactions are classified correctly and not reported under incorrect categories. Also check for financial activities that are missing from AIS but are relevant to tax fillings.

Cross-check the information provided in AIS with other financial documents to identify any discrepancies. These include Form 16 (for salaried individuals), Form 16A (for TDS on income other than salary), Form 16B (for TDS on sale of property). Reconciling financial transaction information with AIS before filing ITR will help taxpayers avoid inquiries from the I-T Department. The information contained in AIS at times forms the basis of the notices issued by the I-T Department, resulting in tax demands.

 

AIS and ITR filling

To ensure smooth and error-free tax filing starting early, verifying documents thoroughly, and seeking professional assistance if needed.

Be proactive. Address any issues identified in AIS immediately. Make a timely confirmation. Utilise the real-time status feature to confirm transactions promptly, avoiding last-minute issues during ITR filing. Regular monitoring.    

Check your AIS throughout the financial year to stay updated on your financial transactions and tax liabilities. If a tax-payer finds any discrepancy after filing the tax return, they should revise it based on correct information.

 

Your guide to three new ITR-3 utilities

The income-tax (I-T) department has released tools to help you file your ITR-3 form easily in three different ways-Online, offline (Java), and Excel-based. These are available on the I-T e-filing portal under the “Downloads” section.

ONLINE

Let’s you fill out information page by page. Most data are pre-filled based on previous filings.

Benefits: Saves time, is convenient and efficient. Ideal for taxpayers who want a streamlined process.

 

OFFLINE (JAVA)

You can download the software and fill out the information within the downloaded programme.

Benefits: Easier than online filing if you prefer a software interface. Ideal for those with complex tax situations.

 

EXCEL UTILITY

You can download the Excel spreadsheet and fill out the information in its different tabs.

Benefits: You can save your progress and come back later. Ideal for users more comfortable with the Microsoft excel interface than the Java utility.

 

 

For More Details: Pooja Manoj Gupta, visit www.giia26.com

Email: pmgiia26.com Mobile  9868944340