Explained: Taxpayers now have access to a new AIS feature for info tracking

Previously, there was limited transparency regarding whether the information reported by these institutions was accurate and accepted by the Income Tax department. This new feature bridges that gap.

The Income Tax department has introduced a new feature in the Annual Information Statement (AIS) to help taxpayers track the confirmation process of their financial information.

Here's a breakdown:

What is AIS? 

The Annual Information Statement (AIS) is a document provided by the Income Tax department that summarizes your financial transactions during the year. This information comes from various sources like banks, mutual funds, etc.

Why is confirmation important? 

The information in the AIS might not always be perfectly accurate. This new feature allows you to see if the information reported by these institutions (banks etc.) has been confirmed by the Income Tax department.

What can you do with this new feature? 

You can now see the status of each transaction listed in your AIS. This status could be:

• Confirmed: The Income Tax department has accepted the information reported by the institution.
• Partially Accepted: The department has accepted some details but needs clarification on others.
• Rejected: The department has rejected the information and may need you to provide corrections.

How does it work?

"This functionality will display whether the feedback of the taxpayer has been acted upon by the source, by either, partially or fully accepting or rejecting the same. In case of partial or full acceptance, the information is required to be corrected by filing a correction statement by the source. The system provides clarity on whether the feedback provided by the tax-payers has been acknowledged by the respective information sources, and in case feedback is accepted in partial or full, the ones lies on the source to rectify the information by submitting a correction statement," said Rajarshi Dasgupta, Executive Director - Tax, AQUILAW.

It may be noted that information confirmation is currently made functional with regard to information furnished by tax deductors/collectors and reporting entities.

How to access AIS?

AIS is available to all registered income taxpayers through the compliance portal, accessible through the e-filing website (www.incometax.gov.in). 

Benefits for taxpayers:

• Transparency: You can now see if the information the Income Tax department has about your finances is accurate.
• Proactive correction: If there are any discrepancies, you can address them before they become a problem during tax filing.
• Reduced workload: This may help avoid situations where the department raises questions about your income during tax filing, potentially saving you time and hassle.

"This new functionality is expected to increase transparency by displaying such information in AIS to the taxpayer. This is another initiative of the Income Tax Department towards ease of compliance and enhanced taxpayer services. Past experiences such as difficulties faced by the tax-payers regarding jointly held investments etc. have prompted the authorities to come up with such an innovative solution and the new AIS should handle such challenges more effectively," added Dasgupta.