ANNUAL INFORMATION STATEMENT

ANNUAL INFORMATION STATEMENT

The Income-Tax Department has rolled out a new Annual Information Statement (AIS), which includes additional categories of information.

The facility can be accessed by visiting the online portal link of the Annual Information Statement (AIS) under the Services tab on the tax e-filing portal.

At present, Form 26AS is detailed by the Tax Department, which is a consolidated annual tax statement that includes information on TDS/ TCS, advance tax, and self-assessment. It is available on the Income-Tax website against a taxpayer’s PAN.

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The revised AIS includes additional categories of information – on interest, dividend, securities transactions, mutual fund transactions, and remittances from abroad, along with information on many other transactions that are at present available with the IT Department.

“There may be other transactions relating to the taxpayer which are not presently displayed in the AIS,” the I-T Department has said.

With the help of AIS, Taxpayers can view the information, report, and accurate data in the Income Tax Return.

Taxpayers just need to carefully check all transactions reflected in the AIS, so that correct information is then reflected in their returns.
With the revised AIS, most transactions are now under the purview of the I-T Department.

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The Department has said it also has access to information beyond what is being shown in the AIS, which will help tax authorities to assess a taxpayer’s profile comprehensively and reduce the scope of evasion.

The department has offered the convenience of feedback, which will ensure correction of any anomaly before a taxpayer files their returns. The ability to submit online feedback will help remove any duplicate and incorrect transactions.

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.

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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.

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.