The Annual Information Statement released by Dept. Of Income Tax

The Annual Information Statement released by Dept. Of Income Tax

The new Annual Information Statement (AIS) on the compliance portal, which provides a comprehensive view of information relating to a taxpayer’s interest, dividends, securities transactions, mutual fund transactions, and foreign remittance information, among other things, was launched on Monday by the income tax department.

The new AIS can be viewed by going to the services page on the new income tax e-filing portal and clicking on the link Annual Information Statement.

The Board said in a statement Monday that “the presentation of Form 26AS on the TRACES portal will likewise continue in parallel until the new AIS is validated and fully operational.”

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In addition to extra information relating to interest, dividends, securities transactions, mutual fund transactions, international remittance information, and so forth, the new AIS contains a facility to record online feedback.

Duplicate information has been removed from the information reported. The Board stated that taxpayers will be able to obtain AIS data in PDF, JSON, and CSV forms.

“A facility has been provided for the taxpayer to submit online comments if they believe the information is erroneous, relates to another person/year, or is duplicate.” The Board also stated that “feedback can be provided by submitting information in bulk.”

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 presents the taxpayer’s aggregated value for simplicity of return filing.

TIS displays the processed value, which is the value obtained following deduplication of data using pre-defined criteria, as well as the derived value, which is the value derived after taking into account taxpayer feedback and the processed value.

7 ways in which taxpayers can reduce their tax liability

The resulting information in TIS will be automatically updated in real time if the taxpayer offers comments on AIS, according to the Board.

“The resulting information in TIS will be used for Return pre-filling (pre-filling will be enabled in stages),” it continued.

Because the AIS will incorporate information now available with the income tax department, the Board advised taxpayers to double-check all related information and disclose complete and accurate information in their income tax returns.

The Board also stated that in the event of a discrepancy between the TDS or TCS information or the details of tax paid displayed in Form26AS on the TRACES portal and those on the AIS, the taxpayer may rely on the information displayed on the TRACES portal for ITR filing and other tax compliance purposes.

Income Tax Payment- Checks & Balances

Income Tax Payment- Checks & Balances

When paying self-assessment or advance tax, it’s critical to double-check that the assessment year and code for the tax category you’ve chosen are valid. If you choose the incorrect option, there may be a mismatch between the taxes you pay and the amounts shown on Form 26AS for a given fiscal year. As a result, you won’t be able to claim a tax credit for it when you file your income tax return (ITR).

Here’s how taxes are paid and how to fix any problems you could make when paying self-assessment tax.

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What are the most common mistakes made by taxpayers when it comes to paying taxes?

Paying advance or self-assessment tax can be done in two ways:

(1) Through the NSDL website

(2) Paying taxes with physical challans at a bank branch.

Taxpayers frequently make the error of picking the incorrect assessment year for which tax payment is due, according to chartered accountants. The assessment year follows the financial year for which the ITR must be lodged.

For example, the assessment year for FY 2020-21 is 2021-22. As a result, the tax you pay now for FY 2020-21 will be known as self-assessment tax. Furthermore, when making the payment, you must pick AY 2021-22. If you are submitting advance tax for the current fiscal year, you should choose AY 2022-23 because you will be depositing for FY 2021-22, which is the current fiscal year for which ITR will be submitted next year.

What is the best way to fix a mistake?

Ex-IRS officer and founder of Taxbuddy.com, an ITR filing service, Sujit Bangar says, “If a mistake was made when paying taxes, the easiest approach to fix it is to contact the jurisdictional assessing officer or send him an email asking correction. The inauguration of the ‘Challan Correction’ service is noted on the newly created income tax portal. This service, however, has yet to be made available to taxpayers. Once this service is activated, an individual can use his or her registered account to repair challan errors online.”

The information on the ‘Challan Correction’ service may be found in the ‘Help section’ of the new income tax portal.

Haven’t received an Income tax refund yet? Do this

How can you find out who your assessing officer is?

As previously stated, the assessing officer can make changes to the tax challan details. To find out who your assessing officer is, follow the steps below on the new income tax portal:

Step 1: Go to https://www.incometax.gov.in/iec/foportal to access the new income tax portal.

Step 2: Select ‘Know your AO’ from the ‘Services’ tab on the webpage.

Step 3: On your screen, a new webpage will appear. Fill up your PAN and phone number. Continue by pressing the enter key.

Step 4: Your cellphone number will receive a one-time password (OTP). The OTP is only good for 15 minutes. Click ‘Validate’ after entering the OTP.

The page will display your assessing officer’s information, including his or her office address and email address. You have the option of sending an email for challan details rectification or physically visiting his/her office for correction.

5 Mistakes to Avoid while Filing your Income Tax Returns!

Avoid these five mistakes while Filing your income tax returns 

Even if you aren’t new to the procedure, filing income tax returns can be difficult.
As if the tedious paperwork wasn’t enough to test your patience, last-minute difficulties on the income tax return-filing system frequently hinder a seamless completion. Add to that the numerous changes in tax rules that occur each year, and the work appears to be much more difficult. When it comes to filing your income tax taxes, mistakes are unavoidable.

For example, selecting the incorrect assessment year, failing to pre-validate your bank account, providing incorrect bank account information for refunds, failing to e-verify your return within 120 days after filing it, and so on. Then there are faults that are serious enough to warrant a notification from the Internal Revenue Service.

The complexity of the activity, in the eyes of the tax department, is not a good defence. Errors in your income tax returns forms, whether large or minor, will have to be dealt with. Here’s how to prevent some of the most typical blunders.

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Incorrectly declaring one’s residence status

The number of days you spent in India during the previous fiscal year affects your resident status and, as a result, your tax liability under income tax laws. For example, an Indian citizen or person of Indian ancestry who spent 182 days or more in India during the preceding fiscal year would be considered a’resident’. However, while determining whether she is a resident and ordinarily resident or a resident but not ordinarily resident, there are various other factors to consider.

“A lot of the time, we see taxpayers make mistakes when it comes to disclosing their residency status. They report it as Non-resident or Not Ordinarily Resident while they truly qualify as residents, and vice versa. According to Chetan Chandak, “this can lead to major tax and reporting default.” Residents must now pay tax on income received in other countries, in addition to reporting all of their foreign assets and accounts on Form ITR-2.

“If a resident taxpayer fails to do so, he or she may face significant penalties for failing to pay due taxes on overseas income as well as failing to register foreign assets and accounts.” This is especially important now that India has signed IGAs with a number of nations and established a framework for automated information exchange with other tax agencies,” he argues.

Keeping unlisted shares’ information hidden

If you own shares in an unlisted, private limited company, you must report all such stocks, sales and purchases, as well as the cost of acquisition, during the year. “This assists tax authorities in calculating your tax liability on such transactions.” If you fail to provide these data, you may be accused of submitting a false return, with the resulting penalties,” Chandak explains.

This guideline is especially important for employees who work for start-ups or other private limited firms. “That is, assuming such employees have ESOPs as part of their compensation package.” Please keep in mind that shares of foreign firms that are listed anywhere in the world may not be deemed unlisted companies for the purposes of this clause. However, depending on your residency status, those shares may be needed to be declared under the Foreign Asset Category on Form ITR.”

Have you changed jobs? Remember to report your wage for the entire year.

If you change positions during the fiscal year 2020-21, remember to request a copy of the former employer’s form-16. “In the ITR, both employers’ income must be taken into account.” You may receive a notice from the Internal Revenue Service if it is not revealed,” Soni warns.

Is it difficult to file an income tax return in India?

Interest on savings accounts is not declared.

Many of us keep large sums of money in our savings accounts to cover unexpected expenses or because we’re too lazy to invest it in higher-yielding investments. The bank now pays you interest on this balance every quarter. However, this sum is not shown on your employer’s form-16. You may receive a warning from the income tax department if you neglect to search through your bank statements for the financial year to seek for savings account interest earned and declare it in your I-T returns. This also applies to interest on fixed deposits, which must be reported under ‘Income from other sources.’

Dividend income is not disclosed.

It is possible that some private investors may completely miss declaring dividend income collected on mutual funds and stocks starting this assessment year. Even if they do, some may make mistakes when estimating this year’s income. This is due to the fact that such dividends become taxable in the hands of individual investors only beginning in the fiscal year 2020-21, and so represent a new development this assessment year.