ITR Filing: Know About New Feature Of AIS Form And How It Will Benefit You

Recently, the Income Tax Department said that it has added a new feature to the Annual Information Statement (AIS Form) Form. Through this new feature, taxpayers will be able to see the status of the information verification process. This means that they will know the status of any transaction after their comment. AIS is prepared based on financial data obtained from multiple information sources. It provides details of a large number of financial transactions of the taxpayer, which may have tax implications. 

Improved comment feature in AIS

The taxpayer has been given the facility to give feedback on each transaction displayed in the AIS system. This feedback helps the taxpayer to comment on the accuracy of the information received from the source of such information. In case of incorrect reporting, it is automatically routed to the source for verification. 

What did CBDT say?

"The Income Tax Department has now introduced a new mechanism in AIS to display the status of the information verification process," the Central Board of Direct Taxes (CBDT) said in a statement. Action has been taken on the response of the source by accepting or rejecting it partially or completely. In case of partial or complete acceptance, it is necessary to correct the information by filing a correction statement on behalf of the source.

"This new arrangement is expected to increase transparency for taxpayers by displaying such information in the AIS," CBDT said. This is another initiative of the Income Tax Department towards ease of compliance and better taxpayer services.

What is AIS?

AIS i.e. Annual Information Statement (AIS) also includes all the information required under the Income Tax Act 1961. To simplify the process of filing income tax returns, the government changed Form 26AS last year and a new form was included. This new form is called the Annual Information Statement (AIS), which contains all the information about taxpayers.

What is there in AIS form?

The information shown on AIS is in two parts.

Part A – General Information

This part contains PAN, masked Aadhaar number, name and date of birth of the taxpayer (date of formation in case of a company), mobile number, e-mail ID and address of the taxpayer.

Part B- TDS/TCS information is shown.

SFT information: This part includes the information given by the companies making Statement of Financial Transactions (SFT). In which dividends received from companies and interest received on savings accounts are also included.

Demand and Refund: In this section, you can see the information related to the refund issued to you and the demand made from you in any one financial year.

Other information: This part includes information received from other sources. Like- Annexure II form of salary, interest received on refund, purchase of foreign currency, etc.