Income Tax Department introduces New AIS features; Here’s Everything You Need to Know

The Income Tax Department has just released a new feature in its Annual Information Statement (AIS) on IT portal with the main purpose of making taxpayers more transparent and convenient. The AIS offers a whole data overview of the information reported by the taxpayers, Tax Deducted at Source (TDS), Tax Collected at Source (TCS) and other data.

The new rollout feature of AIS enables taxpayers to view the status of the information confirmation process. Apart from this, taxpayers who have overpaid tax can very easily get a refund by logging in to the AIS portal while filing their Income Tax Return (ITR). The online platform will do the prepaid taxes and the taxpayer just needs to verify the details and then submit the ITR. The new method is meant to decrease the time for processing the refunds since the manual intervention will be eliminated.

Additionally, the AIS will also show the taxpayer’s income from different sources such as salary, interest, dividends, and capital gains from mutual funds and stocks, and, at the same time, it will reduce the refund process. Besides, it will be the source of the data of all the taxes paid through TDS and TCS and the names of the deductor or the collector who reported it. AIS shows the income and the taxes of a taxpayer, it tries to encourage voluntary compliance and transparency.

The Income Tax Department has requested all taxpayers to log in to their AIS and check all the information that is going to be reported in the ITR before filing it. This will be the ideal solution to the problem of low data quality which will eliminate the need for the troublesome rectification of the data later on. In a nutshell, the advancements in AIS are a positive step that will give taxpayers more power and will make the tax filing process simple.

”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,” said the Central Board of Direct Taxes.