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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.