Before proceeding with your Income Tax Return (ITR) filing, it’s essential to review your Annual Information Statement (AIS). Should any discrepancies be detected within the statement, it’s imperative to provide feedback to the Income Tax Department promptly for rectification. Previously, real-time feedback wasn’t an option with AIS. However, the Income Tax Department has recently introduced this feature for the first time.
Real-Time Feedback Enabled
The AIS comprehensively documents all financial transactions eligible for taxation throughout the year. Accessible via the e-filing portal associated with ITR, you can now offer real-time feedback on the displayed AIS details. This feedback promptly reaches the originating source of the information used by the Income Tax Department. Consequently, taxpayers receive updates regarding the responses from these sources. If corrections are warranted, adjustments are made to the AIS accordingly.
AIS Amendments by the Income Tax Department
Tax experts emphasize that individuals engaged in various investments, such as mutual funds, the stock market, and LIC, often encounter discrepancies. Entities like mutual fund companies and stock markets provide transaction details to the Income Tax Department, which may occasionally contain errors. For instance, if AIS indicates a sale of shares worth Rs 1 lakh while the actual value is Rs 60,000, taxpayers can submit feedback. This feedback is relayed to the relevant source, and upon confirmation of the discrepancy, the Income Tax Department rectifies the AIS. If the feedback is rejected, no amendments are made.
Enhanced Accuracy in ITR Filing
M.K. Gupta, a Chartered Accountant (CA) and tax expert, highlights the significance of this feature in ensuring accurate ITR filings. Currently, taxpayers often accept erroneous AIS information, leading to inaccurate tax payments. Real-time feedback enhances transparency and simplifies compliance. Upon submitting feedback on AIS details, taxpayers receive updates from the date of feedback until the source confirms the accuracy.
