Earned capital gains? You must cross-check your AIS before filing ITR The statement was launched last year in November 2021. However, being a new document it contains many errors making it difficult for individual taxpayers to file ITR. Not checking and correcting AIS may lead to income tax notice as well
The Annual Information Statement (AIS) is a new document that taxpayers must check before filing an income tax return (ITR) this year. The statement contains information about the financial transactions that have been undertaken by an individual taxpayer during the financial year. Information in the AIS will help the taxpayers to ensure that all financial transactions are reported in the ITR.However, as this is a new document (launched last year by the tax department), there are many errors in the statement. According to tax experts, the AIS of many taxpayers is showing errors which is making it difficult to file ITR.
Dr Suresh Surana, Founder, RSM India - a tax consultancy firm says, "Errors are being noticed in case of many taxpayers' Annual Information Statement (AIS) this year. These errors may be a result of technical glitches on the new income tax portal such as Information getting updated in Form 26AS but taking substantial time to get updated in the AIS. Otherwise, the errors may be generated as a result of incorrect information filed in the SFT details such as duplication of certain entries, information pertaining to different financial years etc."
Errors that are being seen in the AIS are as follows, as per tax experts:
a) Error in duplication of certain entries such as capital gains, interest income etc.
b) Incorrect amount reflected in the AIS. For instance, deposit in Mutual fund shows an enhanced amount in AIS as opposed to the actual amount.
c) Information not belonging to the taxpayer gets reflected in his AIS.
d) In case of details such as Sale of Property with Joint ownership, the AIS reflects the total share instead of actual share of the individual taxpayer.
e) Information pertaining to a different financial year is reflected in the current AIS.
Abhishek Soni, CEO, Tax2Win.in - an ITR filing website says, "While filing ITR, we are seeing errors in the AIS of many taxpayers. Errors in the AIS is making it difficult to file ITR. This is because one needs to ascertain the correct figure to be mentioned in the ITR form. Once it is known that AIS has errors then it needs to be corrected as well."
If the errors are not corrected in the AIS, then the individual may receive an income tax notice from the tax department.
Can you file ITR first and correct AIS later?
With the deadline to file ITR, i.e., July 31, 2022, approaching fast, can an individual file ITR first and correct the AIS later?
Soni says, "Yes, an individual can file his/her ITR first on the basis of the information he/she has and then correct the mistakes in the AIS. This will help the individuals to avoid missing the ITR filing deadline."
Surana says, "It is pertinent to note that the purpose of AIS is merely for the taxpayer to reconcile the information available with him. Thus, if the assessee taxpayer has sufficient documentation for the financial transaction mentioned in the AIS, he/she can rely on the same and accordingly provide feedback for correction in the AIS."
( Originally published on Jul 27, 2022 )
This story originally appeared on: India Times - Author:Tax Cognition
