Mar 21, 2022
One of the recent announcements by the Government of India on the enlarged scope of Form 26AS brought a drastic change in filing Income tax for a person as per Income Tax law. Central Board of Direct Tax introduced the new Rule 114-I by omitting 31AB, which provides various authorities to upload information in 26 AS in the registered, assesses account. Earlier 26AS used to carry information related to tax deducted, tax collected from Individuals income, and details of taxpayers direct tax payment information. It is advisable for all the taxpayers, who are filing online Income tax to understand the Annual Information statement.
What is AIS- Annual Information Statement? The annual Information statement is a broader view of various financial transaction information of a taxpayer by various authorities collated by the tax department based on Permanent Account Number and displayed in Form 26AS. It also provides feedback from the taxpayers on various updated information displayed in the Annual Information statement. Annual Information statement introduced to capture all the financial transaction information related to taxpayers to enable them to the seamless filing of Income-tax using prefilled information, facilitate online feedback, modification of not executed transactions, discourage noncompliance and promote voluntary compliance.
What information is displayed in the Annual Information Statement?
Sources: https://cleartax.in
Annual information statement information displays two parts: Part A general information that includes; Permanent Account Number, Aadhaar Number (Masked) , Name of the taxpayer/Assessee, Date of Birth in case of Individuals/ Incorporation date for Companies /formation date for trust or AOI or BOI, contact details of taxpayers. Part B transaction information includes; (1) Tax deduction at source or Tax collected at sources with code, description, and value information displayed. (2) Statement of Financial transactions from various reporting entities, with code, sources of information, reported date, value, and status information made available. Examples of Statement of Financial transactions; security transactions, interests on Bank deposits, mutual fund transactions, any other deposit transactions, statement of foreign remittances, any other income received through Banks/financial institutions. (3) Payment of advanced tax or self-assessment tax information displayed (4) Demand and Refund related information for the assessment year during particular financial year (5) Other information that includes; salary, interest on refund, outward foreign remittances/purchase of foreign currency.
How to access the Annual Information Statement?
Any Individuals, Hindu Undivided Family, Association of Persons, Body of Individuals, Firms, Companies, LLP, or any other person holding Permanent Account Number with income generated through various sources can access his/her Annual Information Statement.
Sources: https://www.financialexpress.com/
Taxpayers can access to Annual Information Statement for filing Income tax returns, can submit feedback for modifying incorrect/duplicate/any other taxpayers information. One can follow the process to access information through login into the Income-tax e-filing website. The first-time taxpayer can register or the existing taxpayers can log in using the user ID and Password with 2-factor authentication. In the Income, tax website after login click on services>Annual Information Statements. After clicking, the message appears to proceed to the Annual Information statement home page. After clicking proceed, the next screen provides Taxpayers’ information summary and Annual Information Statement with revised values under different AIS categories. In the next step two tiles appear – Taxpayer Information summary and Annual Information Statement, Taxpayers can view by selecting the Financial year which details are required from the dropdown menu. In the next step, AIS displays two-part data uploaded by the prescribed authority. Finally, you can view, download available information in CSV/JSON/PDF format.
Conclusion:
The latest announcement by the Government of India on the enlarged scope of Form 26 AS disrupts the way Income tax returns are filed by a Person as per the Income tax act. Annual Information Statement a broader view of persons financial transactions facilitates to increase the tax filing assesses base, capture all the financial transaction data, provide feedback and provide the seamless Income tax filing by taxpayers. Over the next few years, all non-compliant taxpayer comes under the umbrella, as all the information is based on the Permanent Account number captured in AIS. The Assessee earlier who never use to disclose various financial transactions having various Income sources were forced to disclose all the information while filing Income tax. It assists in minimizing tax frauds and tax evasion as it captures various information collected and updated from different entities/authorities.
References: Cleartax.in, Financialexpress.com, livemint.com, and Income tax India website.
