TaxConcept
The Income Tax Department has introduced new features in its Annual Information Statement (AIS) on the IT portal with the aim of enhancing transparency and convenience for taxpayers. The updated AIS provides a comprehensive overview of the data reported by taxpayers, including details on Tax Deducted at Source (TDS), Tax Collected at Source (TCS), and other relevant information.
One key feature of the AIS rollout is that it enables taxpayers to track the status of the information confirmation process. Additionally, individuals who have overpaid taxes can easily claim a refund by accessing the AIS portal while filing their Income Tax Return (ITR). This online platform streamlines the process by handling prepaid taxes, with taxpayers only needing to verify the details before submitting their ITR. The implementation of this new method is expected to reduce refund processing times by eliminating manual intervention.
Furthermore, the AIS will display a taxpayer’s income from various sources such as salary, interest, dividends, as well as capital gains from mutual funds and stocks. Alongside this, it will streamline the refund process and serve as a comprehensive source of data on taxes paid through TDS and TCS, including the names of the deductor or collector who reported the information. By showcasing a taxpayer’s income and taxes, the AIS aims to promote voluntary compliance and transparency.
The Income Tax Department has urged all taxpayers to log in to the AIS and review the information that will be reported in their ITR before filing. This proactive approach is designed to address issues related to low data quality, thus minimizing the need for subsequent data rectification. In summary, the enhancements to the AIS represent a positive stride towards empowering taxpayers and simplifying the tax filing process.
The Central Board of Direct Taxes stated, “This new functionality is expected to increase transparency by displaying such information in AIS to the taxpayer. This is another initiative of the Income Tax Department towards ease of compliance and enhanced taxpayer services.