Some taxpayers are finding inconsistencies in their yearly information statement as the deadline for filing income tax returns (ITR) draws near. The AIS is a thorough declaration that includes financial transaction information and is required for ITR filing. Errors in the AIS, however, may result in issues and possible investigation by tax authorities.
Comprehending the AIS
A taxpayer's numerous financial transactions are consolidated in one location via the AIS. Information on earnings, taxes paid, bank transactions, investments, and other financial transactions are all included. By entering pertinent data, the AIS is intended to make the ITR filing procedure simpler.
Several typical AIS mistakes include:
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Redundant or inaccurate income entries.
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Details of TDS (Tax Deducted at Source) are not matching.
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High-value transactions that lack accuracy.
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Mistakes in interest payments received from post offices or banks.
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Disparities in stock market or mutual fund transactions.
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How to fix the errors in AIS
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Go to incometax.gov.in to use the income tax e-filing site.
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Proceed to the 'services' section
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From the selection option, choose 'Annual Information Statement (AIS)'.
Taxpayer Information Summary (TIS) and Annual Information Statement (AIS) are the two alternatives that will be displayed to you.
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Select "AIS" by clicking
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Part A and Part B will be the two sections in which AIS is shown.
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Review the details in both sections with great care
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Choose the precise inaccurate information
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Select the "Submit Feedback" option
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Seven selections will show in a drop-down menu which includes:
i) The information is accurate
ii) Transfer not constituting a sale
iii) There is no tax on income
iv) Some information is incomplete
v) Data pertains to another PAN or year
vi) Data is repeated or combined with additional data
vii) Refusal of information
Choose the one that makes sense for your circumstances. Then select 'Submit' to send your correction requests. However, it's important to fix mistakes in your AIS for a number of reasons.
Precise ITR Submission: Your ITR form is pre-filled using the AIS data. Fixing mistakes lowers the possibility of receiving notifications or investigation from the tax agency and guarantees that you file an appropriate return.
Preventing Discrepancies: Inconsistencies between your ITR and AIS may result in tax department notifications, which may cause needless anxiety and even penalties.
Simplifying Tax Assessment: A precise AIS enables more seamless processing of your income tax return and expedited reimbursement, if necessary.
"Ensuring that the AIS accurately reflects your financial transactions helps determine the correct tax liability and avoids underpayment or overpayment of taxes," stated Adhil Shetty, CEO of Bankbazaar.com.
Inaccurate information may be recorded in your ITR due to errors in the AIS. The information you supplied on your tax return is cross-verified by the tax authority using the AIS. Inconsistencies between the AIS and the ITR may attract attention and result in fines, interest on overdue taxes, and other repercussions. Error correction becomes crucial to maintaining compliance with tax regulations and reducing the possibility of fines.
