Filing an Income Tax Return 2021: What is an Annual Information Return (AIS) and why is it important for filing the tax return?

The Central Agency for Direct Taxes recently announced that an Annual Information Declaration (AIS) will be made available to taxpayers via the e-Filing portal.

The Government of India intends to expand the amount of information that would be available to taxpayers to help taxpayers with more accurate filing of their income tax returns. The government introduced this new mechanism for better compliance when filing income tax returns. AIS is basically nothing more than a list of all your transactions in different units, which is brought to a platform via your PAN. India is one of the few economies that will recover strongly; The effects of the new COVID-19 variant Omicron will be less severe, according to the Treasury Department’s report

The AIS is a comprehensive list with information on all of your financial transactions in a fiscal year (FY), ie it contains the information specified in the Income Tax Act 1961. It now also includes information on income from various sources such as salary, dividends, interest from a savings account, recurring deposits, sales and purchases of stocks, bonds, mutual funds, etc reimbursement.

Now AIS is divided into two parts:

Part A shows general information such as name, date of birth, PAN, masked aadhaar number, cell phone number, address and others, while Part B shows detailed information about TDS, specified financial transactions, payment of taxes, claim and refund and other information such as repayment interest, international transfers, Buying foreign currencies.

The Income Tax Department has also provided an AIS utility for taxpayers to view AIS and upload feedback in offline mode. The reported value and the value after feedback are displayed separately in the AIS. If the information is changed / denied, the information source can be contacted for confirmation. Budget 2022: Finance Minister Nirmala Sitharaman is holding preliminary talks with representatives from various sectors today

The Ministry of Finance has announced that the display of Form 26AS on the TRACES portal will continue in parallel until the new AIS is validated and fully operational.

(The above story first appeared on LatestLY on December 20, 2021 at 1:25 p.m. IST on LatestLY. For more news and updates on politics, world, sport, entertainment and lifestyle, log on to Latestly.com).

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