The 𝗔𝗻𝗻𝘂𝗮𝗹 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻 𝗦𝘁𝗮𝘁𝗲𝗺𝗲𝗻𝘁 (𝗔𝗜𝗦) & Taxpayer Information Summary (TIS) are new documents 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.

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 for Non-audit cases, 𝑎𝑝𝑝𝑟𝑜𝑎𝑐ℎ𝑖𝑛𝑔 𝑓𝑎𝑠𝑡, 𝑐𝑎𝑛 𝑎𝑛 𝑖𝑛𝑑𝑖𝑣𝑖𝑑𝑢𝑎𝑙 𝑓𝑖𝑙𝑒 𝐼𝑇𝑅 𝑓𝑖𝑟𝑠𝑡 𝑎𝑛𝑑 𝑐𝑜𝑟𝑟𝑒𝑐𝑡 𝑡ℎ𝑒 𝐴𝐼𝑆 𝑙𝑎𝑡𝑒𝑟?

Yes, an individual should 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 and unnecessary penalty can be avoided due to late filing of ITR.

It is pertinent to note here 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 at a later stage.

# ITR #AIS # TIS #incometaxreturn #Finance #Mahavir Toshniwal #compliance