Income Tax Return Filing: New AIS Functionality to Boost Compliance

Introduction of Real-Time Status in AIS

The Central Board of Direct Taxes (CBDT) has introduced a new feature in the Annual Information Statement (AIS) for the 2024 income tax return filing. This functionality allows taxpayers to see the real-time status of their feedback on financial transactions, whether it has been accepted, partially accepted, or rejected by the information source. If accepted, the source must file a correction statement.

What is the Annual Information Statement (AIS)?

The AIS is a comprehensive document available to all registered taxpayers through the compliance portal on the e-filing website (www.incometax.gov.in). It details various financial transactions that may have tax implications, gathered from multiple information sources.

Key Features of the New Functionality

The new AIS functionality includes:

1. Feedback Sharing Status: Indicates if the taxpayer’s feedback has been shared with the information source.
2. Feedback Shared Date: Displays the date when the feedback was sent to the source.
3. Source Response Date: Shows the date when the source responded to the feedback.
4. Source Response: Provides details on whether the source accepted or rejected the feedback, and if any corrections are required.

Benefits of the New Functionality

This enhancement is aimed at increasing transparency and improving taxpayer services by:

• Allowing taxpayers to track the status of their feedback in real-time.
• Ensuring that incorrect information can be corrected promptly.
• Simplifying the compliance process by providing clear, actionable information.

AIS vs. Form 26AS

The AIS is an extension of Form 26AS, offering a more detailed view of financial transactions. While Form 26AS includes property purchases, high-value investments, and TDS/TCS transactions, the AIS covers a broader range, such as:

• Savings account interest
• Dividends
• Rental income
• Securities and immovable property transactions
• Foreign remittances
• Interest on deposits
• GST turnover

Additionally, AIS allows taxpayers to provide feedback on reported transactions, enhancing the accuracy of information.

Conclusion

The new AIS functionality by the Income Tax Department represents a significant step towards greater transparency and ease of compliance for taxpayers. By displaying real-time status updates and facilitating corrections, it ensures a more efficient and user-friendly tax filing process.