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.

15G Exempts TDS on Taxable Income below a threshold limit!

15G Exempts TDS on Taxable Income below a threshold limit!

Form 15G can be filed with the prescribed financial institution if the individual’s total income is less than the basic exemption amount.

Where interest income from time deposits with prescribed financial institutions for a financial year (FY) exceeds the required maximum (currently 40,000), TDS at the applicable rate is deducted, according to the rules of the Income Tax Act.

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When an individual’s total income is less than the basic exemption limit, he or she can file Form 15G with a prescribed financial institution (such as a bank) to request that no taxes be withheld from the interest income made on the deposits.

Furthermore, if the tax rate at which the total income is subject to tax is NIL or lower than the rate at which the TDS is deducted (regardless of any advance tax paid by the recipient of income), the recipient of income may apply to the jurisdictional tax officer in the prescribed form for a lower or NIL deduction certificate (LDC). Following an examination of the appropriate papers, the tax officer may issue an LDC indicating a lower rate of TDS deduction at his or her discretion. TDS will be deducted at the rate provided in the LDC in this circumstance.

7 ways in which taxpayers can reduce their tax liability

Separately, take notice of the following from the perspective of the timing of taxation of such income. The interest income you receive from recurring deposits is taxed under the heading “income from other sources” (IFOS) according to the accounting system you use on a regular basis (i.e. mercantile/cash basis).

As a result, if you have previously offered interest income or revenue from other sources on an accrual/receipt basis, you might use the same approach for income from these RDs. The interest income will be taxed at the slab rates that apply to you for the fiscal year in which it is received. Any TDS already deducted by the bank on these deposits during the relevant FY will be credited against the income tax you owe for that year. If the amount of taxes deducted at source is less than the appropriate tax rate, you must pay the difference in advance tax in the specified instalments.