It will give you a comprehensive view of your incomes from various sources such as salary income, interest earned on the bank savings account, interest on fixed and recurring deposits, foreign remittances, dividend payout, off-market credit transactions, purchase of securities and units of mutual funds, sale proceeds of securities and mutual funds, among other things.
Besides, you will also have the facility to submit feedback on the provided information. If you find any information in the AIS to be incorrect, belonging to a different financial year or duplicated, you can report the same in the form of feedback.
So, let us understand why is it important to check your AIS and provide feedback in case of any discrepancy.
Why should you ensure accuracy of information in AIS?
The income tax department urges taxpayers to check the information available in the AIS. That means you need to carefully check and assess each and every transaction reflected in the AIS in order to ensure that correct information is being reflected in your income tax returns
Since you can verify the information available in the AIS beforehand and get the incorrect information modified before submitting your income tax return, it saves you from the hassle of dealing with enquiries from the income tax department for the smallest of errors.
What to do if there is an error in AIS?
In case of an error, the department has offered the facility of feedback which will ensure correction of any anomaly before you file your return.
When you spot an error in the transaction history captured in the new tax filing portal of the income tax department –http://www.incometax.gov.in, you need to send online feedback to the department. Furthermore, an AIS utility has also been provided for you to monitor AIS and upload feedback in an offline manner. The reported value and value after feedback will be separately displayed in the AIS.
In case you don’t inform the department about the error, it may be assumed that the information reflected in AIS is correct. And, after you file the return, you may be asked to explain the mismatch between the return filed by you and the information in the AIS.
Note: If there is a discrepancy in the information mentioned in Form 26AS on the TRACES portal and the TDS/TCS details or tax payment information as displayed in AIS on the compliance portal, you may rely on the information displayed on the TRACES portal for return filing and other tax compliance purposes.
What is the procedure to correct an error in the AIS?
In order to rectify a mistake, you need to provide online feedback. Below mentioned are the steps to follow:
- Login to e-filing portal – www.incometax.gov.in
- Select ‘Annual Information Statement’ under the ‘Services’ tab.
- You will see two options on your screen – Taxpayer Information Summary (TIS) and Annual Information Statement (AIS). Select ‘AIS’.
- Select the incorrect information from Part A and Part B of AIS. Select ‘Optional’ to submit your feedback.
- Select the applicable response type from the 7 available options in the drop-down me
- Information is correct
- Information is not fully correct
- Information relates to other PAN/Year
- Information is duplicate / included in other information
- Information is denied
- Income is not taxable
- Transfer not in the nature of sale
- Provide additional information based on your response type.
- Click the ‘Submit’ button.
On submitting feedback, you will receive a confirmation on your email id and SMS. You will also be able to download an acknowledgment receipt for the same.
On successful submission of feedback, the income tax department will automatically correct the required information in your AIS.
You can also download the AIS consolidated feedback file to view all your AIS feedback in one pdf for easy and quick access.
Note: You can also modify a previously given feedback by providing the correct reason and proper remarks for the same. The same will be reviewed by the department before giving effect to the modification.
Since the past few years, the income tax department has been actively focusing on revamping ITR forms to seek detailed disclosures and increase the scope of information in Form 26AS to eliminate the cases of tax leaks.
With the new AIS, most transactions are now under the purview of the income tax department which will help them to comprehensively assess a taxpayer’s profile and reduce the scope of evasion of income in the income tax return.