Income Tax Return Filing: How new AIS correction status update feature will help taxpayers – explained | Business

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Income Tax Return e-submitting: Taxpayers going through inaccuracies of their Annual Information Statement (AIS) now have an answer at hand. The Central Board of Direct Taxes (CBDT) has revamped the AIS system, enabling people to trace the status of their correction requests in actual-time.
The CBDT introduced in a press launch dated May 13, 2024, that they’ve added a new feature to the AIS.This feature will present if the taxpayer’s suggestions has been addressed by the supply, both partially or totally, by accepting or rejecting it.

What does the new feature do in AIS?

As per an ET report, the AIS could be discovered on the compliance portal, which is accessible to all registered revenue taxpayers. You cannot entry the compliance portal instantly. First, it’s worthwhile to log in to the e-submitting ITR portal, then go to the ‘Pending Actions’ tab to entry the compliance portal.
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CBDT said in its press launch that the Annual Information Statement is accessible to all registered Income Taxpayers through the compliance portal, which could be reached by way of the e-submitting web site (incometax.gov.in).

Here’s how the new AIS feature works

According to the CBDT’s press launch, if the suggestions is partially or totally accepted, the supply must right the knowledge by submitting a correction assertion.
The AIS will show the next particulars concerning suggestions affirmation from the supply:
– Confirmation Status: Indicates if suggestions has been shared with the reporting supply.
– Date of Feedback Sharing: Shows when suggestions was despatched to the reporting supply.
– Date of Source Response: Displays when the reporting supply responded to the suggestions.
– Source Response: Indicates the response offered by the supply primarily based on the taxpayer’s suggestions (whether or not correction is required or not).
CBDT talked about within the press launch that this new feature is anticipated to reinforce transparency by displaying such data in AIS to the taxpayer.

How does the new AIS feature profit you?

If there’s incorrect AIS knowledge, it’s worthwhile to give suggestions for correction. But previously, there have been points when the reporting supply did not act promptly to repair this. As a outcome, taxpayers obtained revenue tax intimation notices due to discrepancies between AIS and ITR knowledge.
Mihir Tanna, an affiliate director-direct tax at S.Ok Patodia LLP, a CA agency, states that they’ve noticed how incorrect data in AIS has precipitated misery to quite a few professional taxpayers upon receiving intimation from the revenue tax division concerning knowledge mismatches between AIS and filed ITR. In the previous, a few of their shoppers encountered points the place sale and buy transactions of shares appeared in AIS, regardless of not being carried out by them. They offered suggestions within the AIS tab however had been unsure if the reporting entity took mandatory motion.
This new feature will make it clear if it’s worthwhile to do something extra after offering suggestions on improper AIS data. According to Tanna, if the reporting supply does not settle for the suggestions, then the taxpayer solely must take mandatory motion. This readability and transparency are offered by the new performance.
Experts notice that the CBDT’s press launch does not specify how the taxpayer will be told concerning the suggestions offered by the reporting supply.
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Divya Jokhakar, a CA and Associate of the Association of Chartered Certified Accountants (ACCA) within the United Kingdom (UK), explains that the new feature will now notify the taxpayer after they supply suggestions on incorrect AIS knowledge, together with the date when the reporting supply is knowledgeable and affirmation is distributed. Similarly, the taxpayer will even be notified concerning the response and its date from the supply. The press launch does not point out how this communication will occur, however it’s prone to be by way of SMS to the registered cellular quantity and e-mail to the registered e-mail ID.
Experts additionally point out that the communication between the taxpayer and reporting supply turns into less complicated. According to Jokhakar, this alteration implies that communication is now not one-sided because it was earlier than. This ought to present taxpayers with some aid, understanding that their suggestions is being addressed. Additionally, they will work together with sources like tax deductors, collectors, and SFT filers extra simply.

What occurred within the earlier AIS suggestions system?

The AIS gathers monetary knowledge from numerous sources referred to as reporting entities. This knowledge gives a snapshot of the taxpayer’s monetary transactions, forming the idea for submitting revenue tax returns. Yet, since this data comes from third-social gathering experiences, there is a chance of errors getting into the AIS database resulting from reporting errors.
To tackle this situation, CBDT applied a suggestions system inside AIS.
CBDT said within the press launch that inside AIS, taxpayers can now give suggestions on every displayed transaction. This suggestions permits taxpayers to touch upon the accuracy of the knowledge offered by the supply. If there’s incorrect reporting, the system mechanically follows up with the supply for affirmation. Currently, this affirmation course of is operational for data offered by Tax Deductors/Collectors and Reporting Entities.
With the current update, the suggestions system has change into extra responsive, giving taxpayers the flexibility to take corrective actions and observe the status of correction requests.


Nilesh Desai
Nilesh Desaihttps://www.TheNileshDesai.com
The Hindu Patrika is founded in 2016 by Mr. Nilesh Desai. This website is providing news and information mainly related to Hinduism. We appreciate if you send News, information or suggestion.

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