Why Reviewing Your Annual Information Statement is Essential Before Filing Taxes

With the deadline to file income tax returns for the financial year 2023-24 (the assessment year 2024-25) just three days away on July 31, time is running out.

Before you pick the right ITR form and fill in your details, it’s crucial to check two important documents: Form 26AS (tax credit statement) and your Annual Information Statement (AIS). These documents provide details about taxes you’ve paid and other financial transactions.

Steps to Access Your AIS

You can find AIS on the income tax department’s official website

1. Visit www.incometax.gov.in.

2. Click on the ‘AIS’ tab on the homepage.

3. Review instructions and then select ‘AIS’.

4. Download the statement using your PAN and birthdate as password.

Importance of Reviewing Your AIS

It’s important to review all financial transactions and TDS records to ensure you don’t miss any income. AIS and Form 26AS contain a complete history of transactions ensuring nothing is overlooked.

If you forget to report something like the sale of shares or mutual fund units, the tax department will notify you when they process your returns. AIS shows details like tax refunds, interest from savings accounts, dividends earned, rent received and transactions involving securities, properties and foreign remittances. Make sure your ITR includes all these details

Correcting Mistakes

If you find errors in Form 16 due to a mistake by your employer you can correct them on the portal. AIS has a built-in system to handle complaints. To use this:

• Log in to the income tax e-filing portal and access your statement.
• Verify information and provide feedback if you find mistakes.

For raising disputes on any incorrect figures in Part B of AIS (which includes income, TDS and specific financial transactions) you need to:

• Click ‘Bulk feedback’ choose the transaction with the error and click ‘Continue’.
• Select the correct type of complaint from the ‘Feedback type’ dropdown menu and click ‘Submit’.
• If your complaint is accepted, AIS will show both the value reported by deductors and updated data after your feedback.

By carefully reviewing and correcting your AIS, you can ensure your income tax return is accurate and complete.