Lately, we’ve been hearing a lot about the AIS and how increasingly it is becoming an important document for filing returns. Why is that? Well, it’s because AIS plays a crucial role in voluntary compliance. Before you file your return, you can refer to the AIS to double-check your income figures. It’s like having an extra resource at your disposal to ensure that you’re reporting everything correctly.
ITD can cross-check the figures you report with the actual numbers they have on record, and make sure that you are being transparent with your tax declarations.
We can say it is one of the ways for ITD to keep a check on underreporting or misreporting of income.
What exactly is AIS? It is a document that contains your financial information in various sections that contain details such as savings account interest, dividends, rent received, purchase and sale transactions of securities/immovable properties, foreign remittances, GST turnover, etc.
You can also provide feedback on the information displayed in your AIS under each section (i.e. TDS, SFT, etc.).
The importance of AIS has been on the rise. Why? As technology advances and information sharing becomes more efficient, the ITD has access to a vast amount of data. They can effortlessly compare the income and various financial transactions you report in your ITR with the information in the AIS.
The AIS draws data from sources like TDS return filing, CDSL (Central Depositories Services India) Ltd, RTA (Registrar and Transfer Agent), and more.
What is the objective of the AIS?
- Displays complete information to the taxpayer with a facility to capture online feedback
- Promote voluntary compliance and enable seamless prefilling of return
- Deter non-compliance
It has also made quite an impact in FY 2022, the ITD has sent an email campaign to a whopping number of taxpayers who didn’t match their income with the AIS. And in response to that the taxpayers were either supposed to provide feedback giving clarification on particular transactions or to file a revised return /updated return.
Let me give you an example to show you just how useful the AIS can be. Let’s say you forgot to mention the interest earned on your savings account while filing your ITR. Now, the ITD can easily spot this because of the AIS, which contains such information.
So, make sure to report your income accurately, keeping in mind the information collected through the AIS.
How to view the AIS from the e-Filing portal?
- Log in to the e-filing portal from your PAN
- Navigate to Services > Annual Information Statement (AIS) > Proceed > AIS tab
- Select the FY & PAN > Download
The bottom line is that the AIS plays a significant role in ensuring a fair and equitable tax system for everyone.
Read more about AIS (Annual Information Statement) - Learn by Quicko.