HOW NEW ANNUAL INFORMATION SYSTEM HELPS YOU TO FILE INCOME TAX RETURN?
The Income Tax Department has rolled out a new Annual Information System(AIS), announcing various amendments in the form 26AS. The Annual Information System(AIS) will include a detailed information of taxpayer's Mutual fund, Foreign Remittance, and other securities transcations apart from the Tax Deducted at Source(TDS) and Tax Collected at Source(TCS).
In a simple words, Annual Information System(AIS) helps the taxpayers to view most of the tax related information on various Income at one place.
In this article, you will get to know about the Annual Information System(AIS).
What is Annual Information System(AIS)?
AIS is a revised version of the existing Form 26AS. It will include various tax related informations of the taxpayers along with that of TCS and TDS. The Annual Information System(AIS) aims to provide a detailed summary related to taxpayers.
The tax department has confirmed that Form 26AS will be there till the time AIS is fully operationalised. In Budget 2021, the tax department had announced that a revised Form 26AS, known as Annual Information System(AIS), would be available with more detailed information.
AIS will be automatically generated and updated on a real-time based for transactions where PAN (permanent account number) is required. If there is a mistake the taxpayer can approach the tax department and get it corrected.
An AIS Utility has also been provided for taxpayers to view AIS and upload feedback in offline manner. The reported value and value after feedback will be shown separately in the AIS. In case the information is modified/denied, the information source may be contacted for confirmation.
INFORMATION INCLUDED IN AIS:
AIS includes additional categories of information on interest (savings account, recurring and fixed deposits), dividend, securities transactions including mutual funds, and remittances from abroad and more. For the ease of filing ITR, AIS also provides a simplified Taxpayer Information Summary (TIS), which shows the aggregated value for taxpayers.
The purpose of Annual Information System is also to remove duplicate information. The taxpayers can download the AIS information in various formats like PDF, JSON, CSV, etc.
The downloaded version is a simplified TIS with aggregated value including both the processes value (the value generated after deduplication of details based on pre-defined rules) and derived value.
HOW IS AIS USEFUL TO FILE ITR?
The AIS provides a detailed tax related informations which differentiates Form 26AS. AIS can be said as Form 26AS 2.0. It will ease the process of Filing ITR as it contains all the necessary information.
The taxpayers are also provided a facility to submit a feedback if they are not satisfied with the generated consolidated statement and the the derived information in TIS will be automatically updated in real time.
In case there is any variation between the TDS/TCS information or the details of tax paid displayed in the Form26AS on TRACES portal and the TDS/TCS information or the information relating to tax payment as displayed in AIS on Compliance Portal, the taxpayer may rely on the information displayed on TRACES portal for the purpose of filing of ITR and for other tax compliance purposes.
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