New AIS Feature Boosts Income Tax Confirmation Process

New AIS Feature Boosts Income Tax Confirmation Process: The Annual Information Statement (AIS) issued by the Income Tax Department serves as a comprehensive record of an individual taxpayer’s financial activities throughout the tax year. It consolidates data from various sources including banks and mutual funds, providing a detailed overview of business transactions as per the Income Tax Department.

New Feature: Confirmation Status

The Income Tax Department has recently introduced a new feature in the Annual Information Statement (AIS) aimed at enhancing transparency and accuracy in tax filing. This feature allows taxpayers to view the confirmation status of their financial data, ensuring greater clarity and accountability.

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Confirmation Status Explained

• Confirmed: This status indicates that the tax department has thoroughly reviewed and validated the information provided. Entries marked as “Confirmed” are considered accurate, relieving taxpayers from further action.
• Partially Accepted: In this state, some parts of the information have been verified and accepted, while others may require additional details or clarification. Taxpayers should carefully review these records to address any pending issues.
• Rejected: Entries marked as “Rejected” signify that the tax office has not accepted the information provided. Taxpayers are responsible for rectifying inaccuracies promptly to avoid complications with their tax returns.

Accessing AIS

Taxpayers can access their AIS through the compliance page on the e-filing website (www.incometax.gov.in). Here, they can review and make necessary amendments to their recorded financial transactions.

Benefits for Taxpayers

• Transparency: Taxpayers can directly verify the accuracy of the financial information maintained by the tax office, minimizing the risk of errors in tax calculations and assessments.
• Proactive Correction: The updated AIS enables taxpayers to identify and rectify errors in their financial records before filing their tax returns, reducing the likelihood of issues during the assessment process.
• Reduced Workload: With improved visibility and the ability to make corrections in advance, taxpayers can streamline the tax filing process, reducing the need for additional queries or audits from the tax department.

More About AIS

The AIS, introduced by India’s Income Tax Department, serves as an enhanced version of Form 26AS, providing comprehensive details of taxpayers’ financial transactions. It includes additional information such as interest, dividends, securities trades, and mutual fund purchases, facilitating voluntary compliance and ensuring tax clarity. Taxpayers can access the statement through the Income Tax Department’s e-filing portal and provide feedback in case of discrepancies. The AIS is regularly updated to reflect the latest information from financial institutions, aiding in accurate tax liability calculation and minimizing errors in income tax returns.

New Functionality: Confirmation Status Display

The Central Board of Direct Taxes (CBDT) has introduced a new functionality within AIS to display the status of information confirmation. Taxpayers can now check whether their feedback has been acknowledged by the Source/ Reporting Entities. This initiative aims to enhance transparency and ease of compliance, aligning with the Income Tax Department’s commitment to providing enhanced taxpayer services.

Conclusion

The inclusion of confirmation status in the AIS represents a significant step towards improving transparency and accuracy in tax filing processes. By empowering taxpayers to verify and correct their financial information, the Income Tax Department fosters a culture of compliance while reducing the burden on both taxpayers and tax officials.

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