The impact of the new I-T Annual Information Statement on taxpayers

The impact of the new I-T Annual Information Statement on taxpayers

The updated Form 26AS was introduced in the Budget for 2020-21, and it provides a more detailed picture of the taxpayer than the data of tax received and deducted at source.

The Income-Tax Department has released a new Annual Information Statement (AIS) that incorporates new categories of data such as interest, dividends, securities transactions, mutual fund transactions, and international remittances.

What is the AIS, and how might it assist you?

The Tax Department currently details Form 26AS, a consolidated annual tax statement that includes information on tax deducted/collected at source, advance tax, and self-assessment and is available on the Income-Tax website against a taxpayer’s Permanent Account Number (PAN).

The updated Form 26AS was introduced in the Budget for 2020-21, and it provides a more detailed picture of the taxpayer than the data of tax received and deducted at source.

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The redesigned Annual Information Statement (AIS) includes new categories of information on interest, dividends, securities transactions, mutual fund transactions, and remittances from overseas, as well as data on a variety of other transactions now accessible from the IRS.

The Tax Department stated, “There may be further transactions connected to the taxpayer that are not now visible in the AIS.”

Is it true that Form 26A is no longer in use?

The Tax Department stated that Form 26AS will remain in use until the new AIS is validated and fully functioning.

The Department had informed the new annual information statement in Form 26AS, effective June 1, 2020, in May of last year. All facts provided by banks and financial institutions that were previously recorded in their Statement of Financial Transactions were incorporated in the updated Form 26AS (SFTs).

What are the options for taxpayers now?

The new AIS can be accessed by going to the new Income Tax e-filing portal (https://www.incometax.gov.in) and clicking on the link “Annual Information Statement (AIS)” under the “Services” category.

S-194-O Payment of certain sums by the e-commerce operator to e-commerce participant

A provision has been provided for the taxpayer to submit comments online if they believe the information is erroneous, relates to another person/year, is a duplicate, etc. Feedback can also be provided in bulk by providing numerous pieces of information. Taxpayers can also use an AIS Utility to view AIS and upload feedback in an offline mode.

In the AIS, the reported value and the value after feedback will be displayed separately. If the information is changed or denied, the source of the information may be contacted for confirmation.

For each taxpayer, a simplified Taxpayer Information Summary (TIS) has been prepared, which shows aggregated value for the taxpayer to make filing returns easier.

If a taxpayer provides input through AIS, the derived information in TIS will be instantly updated in real time and used for pre-filing returns. Pre-filling will be made available in stages.

Taxpayers have been encouraged to double-check all connected information and present complete and accurate data on their tax returns.

Extended due dates of Income Tax Return and Tax Audit

Extended due dates of Income Tax Return and Tax Audit

The Indian government has extended the deadline for filing the Annual Income Tax Return (ITR) for Fiscal Year 2020-21 from September 30, 2021 to December 31, 2021 for Indian citizens.

Those whose accounts do not require an audit and who typically file a tax return are eligible for the extension. Forms ITR-1 and ITR-4 are used to report income.

The Finance Ministry stated in a statement that the decision was based on taxpayers’ and other stakeholders’ allegations of difficulties in completing income tax returns and different audit findings for the 2021-22 assessment year under the Income Tax Act of 1961.

Individuals’ deadline to file their Annual Income Tax Return (ITR) for fiscal year 2020-21 has been extended from July 31, 2021 to July 31, 2022. From the beginning, various challenges and problems have eclipsed the new gateway for e-filing income tax returns. Finance Minister Nirmala Sitharaman has given Infosys, the corporation responsible for the new income tax site, until September 15, 2021 to remedy any difficulties.

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Individuals’ ITR application deadlines were extended four times last year, initially from 31 July to 30 November 2020, then till 31 December 2020, and finally until 10 January 2021.

Due to difficulties experienced by taxpayers in completing income tax returns (ITR) and audit reports for the fiscal years 2021-22 under the Income Tax Act of 1961, the CBDT has extended the deadline for filing ITR and audit reports for the fiscal years 21-22. The IT department tweeted, “Circular 17/2021, dated 09.09.2021, has been issued.”

The deadline for filing audit reports for the preceding fiscal year 2020-21 in conformity with all statutory provisions has been extended to January 15, 2022.

The deadline for filing an accountant’s report under Article 92F of the Act by anyone who made certain international or domestic transactions in the preceding year 2020-21 is now 31 January 2022.

IT has agreed to extend the deadline for filing SPT PPh AY 2021-22, as well as various other deadlines, to February 15, 2022.

The deadline for submitting returns for the 2021-22 appraisal year, which was previously set for December 31, 2021, has been pushed back to February 28, 2022.

For the 2021-22 AY, the deadline for awarding pending or revised income refunds has been extended to March 31, 2022.2022.

Latest Tax Updates

Latest Tax Updates

1. The Director-General of Foreign Trade (DGFT) extended the last date for updation of Importer -Exporter Code (IEC) on annual basis for Financial Year 2021 up to 31 July 2021. The DGFT issued the extension notification in continuance of the notification dated 12 February 2021, so as to inform that the last date to update or modify the IEC is extended up to 31 July 2021.

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2. CBDT issues clarification on Section 194Q :

a) TDS under section 194Q on the net of GST if charged separately. However, for section 206C(1H) GST is to be included.

b) Transactions on recognised exchanges exempted from 194Q.

c) Hierarchy of section 194-O, 194Q and Section 206C(1H) clarified. If section 194-O is applicable to a transaction then 194Q and 206C(1H) will not apply. If 194Q is applicable then section 206C(1H) shall not be applicable. If section 194-O and 194Q are not applicable section 206C(1H) will be applicable.

Critical issues by way for FAQ for new Section 206AB 

d) Turnover/ Gross receipts of 10 crores of buyers for applicability of this section 194Q will mean Turnover/ Gross receipts in business only. Hence receipts by way of rent, interest, capital gain etc if not considered as business income are not to be included.

e) Further provision of section 194Q not to apply in the first year of an entity as no turnover / gross receipts in the preceding year since the entity was not in existence.