The new I-T annual information statement, and how it affects you as a taxpayer
The revised Form 26AS, also called annual information statement, is going beyond just the details of tax collected and deducted at source
The Central Board of Direct Taxes (CBDT) has issued a notification stating that several additional details will now be populated in the Annual Information Statement (AIS) in Form 26AS. This includes foreign remittances, interest on income tax refund, off-market transactions, dividend income earned through mutual funds and purchase of mutual fund units. Clearly, the tax department is trying to put as much financial data as possible and will then track people who did not pay due taxes on such transactions. Here are more details on the topic.
What is AIS
At present, Form 26AS is detailed by the Tax Department. It is a consolidated annual tax statement that includes information on tax deducted/collected at source, advance tax, and self-assessment that is available on the Income-Tax website against a taxpayer’s Permanent Account Number (PAN).
Form 26AS is the tax passbook of an individual. It contains details of the tax deducted and deposited against the PAN of an individual during a financial year.
Why new AIS
The Budget for 2020-21 had announced the revised Form 26AS. This will now give a more comprehensive profile of the taxpayer.
Mutual fund investments exceeding Rs 10 lakh is required to be reported in Form 26AS as per the amended version from last year.
Similarly, dividend income has become taxable from FY 2020-21 and tax has to be deducted on it if it exceeds Rs 5,000 in a financial year. Thus, any tax deducted on dividend income in the last year must be reflected in Form 26AS.
The revised AIS includes additional categories of information of interest, dividend, securities transactions, mutual fund transactions, and remittances from abroad. Besides, there will be information on many other transactions that are at present available with the Income Tax Department.
Form 26AS will continue to exist until the new AIS is validated and is completely operational.
The recent inclusions will make Form 26AS as a ready reckoner for all financial transactions.
What taxpayers have to do
The new AIS can be accessed by clicking on the link “Annual Information Statement (AIS)” under the “Services” tab on the new Income tax e-filing portal (https://www.incometax.gov.in).
If you as taxpayer feel that the information is incorrect, relates to another person/year, is a duplicate etc., there is no need to panic.
There is a facility to submit feedback online. Feedback can also be furnished by submitting information. An AIS Utility has also been provided for taxpayers to view AIS and upload feedback in offline manner.
If the taxpayer submits feedback on AIS, the derived information in TIS will be automatically updated in real time, and that information will be used for pre-filing of returns.
Taxpayers have been asked to check all related information, and to report complete and accurate information in their Income Tax Returns.