Income Tax Return: How to access and review your Annual Information Statement before filing ITR

ITR filing 2024: The deadline for individuals to submit their Income Tax Returns (ITR) is July 31, 2024, which is just a little over a month. It is essential to compile and organise pertinent documents such as salary or income records, bank statements, and previous tax returns in preparation for filing.

When filing taxes, it is important to be aware of any deductions or credits that you may qualify for, as these can help lower your overall tax liability. This could include deductions for charitable contributions, education expenses, medical expenses, and more. Researching and understanding your options in advance can help maximise your tax savings.

Additionally, staying current on tax laws and regulations can also be beneficial when filing taxes. Tax laws are subject to change, and being aware of any updates or revisions can help ensure that you are filing accurately and in compliance with current regulations.

One of the key documents to file your income tax return is the Annual Information Statement (AIS). The Annual Information Statement (AIS) serves as a comprehensive summary of a taxpayer’s financial details, as presented in Form 26AS. Besides encompassing information on Tax Deducted at Source (TDS) and Tax Collected at Source (TCS), the AIS also encompasses data regarding interest, dividends, stock market activities, and mutual fund transactions.

What is Form 26AS

Form 26AS compiles all tax-related transactions linked to your PAN into a single annual tax statement. It provides comprehensive information regarding Tax Deducted at Source (TDS), Tax Collected at Source (TCS), advance tax payments, self-assessment tax contributions, and refunds received. Additionally, it includes records of high-value financial transactions. In essence, Form 26AS serves as a consolidated reference document that details all the income tax credits available to an individual taxpayer.

From Form 26AS, taxpayers can view property purchases, financial transactions, TDS, and TCS. It shows details of high-value transactions and taxes deposited with the income tax department by deductors like employers and banks.

The AIS is an extension of Form 26AS. It offers a broader and more detailed overview of your tax deductions, payments, and various financial transactions. 

This includes information such as tax refunds received, interest or dividends earned from savings accounts, rental income obtained, details of purchase and sale transactions pertaining to securities and immovable properties, foreign remittances made, among others.

Taxpayers can download Form 26AS and the Annual Information Statement from the Income Tax portal ( Register with your PAN as the user ID before starting the process.

Parts of Form 26AS

Form 26AS has many parts or sections. Like, one is on Tax Deducted at Source, Tax Collected at Source, taxes deducted on both sections.

Part A: Tax Deducted at Source (TDS)

This shows a summary of all TDS deducted by various deductors (employers, banks, etc.) on your income. It includes details such as the deductor’s TAN, name, total amount paid/credited, date of payment/credit, TDS amount, and the section under which TDS was deducted.

This has more subsections with information on TDS on income where Form 15G/15H has been submitted to claim exemption from TDS. 
One section also shows information on details of TDS deducted on the sale of property.

Part B: Tax Collected at Source

Part B section details tax collected at source on transactions like goods sale.

Part C: Tax deducted other than TDS, TCS

Displays information about advance tax and self-assessment tax payments made by the taxpayer.

Part D: Details of Paid Refunds

Shows any tax refunds received during the financial year.

Part E: Details of SFT Transactions

Contains information about specified financial transactions (SFT) reported by financial institutions, such as deposits of cash, property purchases, etc.

Part F: Details of Tax Deducted on Sale of Immovable Property

Shows TDS details on the sale of immovable property.

Part G: TDS Defaults (Processing of Statements)

Shows any defaults related to TDS payments.

How to check information on Form 26AS, AIS

> When reviewing the Annual Information Statement (AIS) for Income Tax Return (ITR) filing, taxpayers must first verify the accuracy of their personal information. 

> Subsequently, they should meticulously cross-check the income details reflected in the AIS with their own records. This includes salaries, interest income, dividends, and capital gains to ensure comprehensive reporting of all income sources. It is equally crucial to reconcile the Tax Deducted at Source (TDS)/Tax Collected at Source (TCS) credits reported in the AIS with Form 26AS and other relevant TDS certificates to confirm that all tax deductions are accurately accounted for.

> Taxpayers are advised to meticulously review the Statement of Financial Transactions (SFT) to ensure that all high-value transactions have been accurately reported, thereby eliminating any potential discrepancies in their financial records. 

> Furthermore, it is essential for them to verify the details of advance tax payments, self-assessment taxes, and any other tax-related payments made throughout the year. This should be complemented by a thorough reconciliation of any outstanding tax demands or refunds issued against their personal records.

> Taxpayers may see problems like income reporting errors, TDS credit omissions, and inaccurate SFT reporting. It’s crucial to correct income discrepancies before submitting ITR. 

> Taxpayers ensure that their PAN is accurately stated in TDS certificates for missing credits. Contact the financial institution for any wrongly reported high-value transactions.

How to submit feedback in AIS?

The taxpayer can provide feedback online or offline. Online feedback is only accepted in the AIS section of the compliance portal. Go to the AIS tab to access sections like TDS/TCS, SFT info, tax payments, demand/refund, and more. Select ‘Optional’ to submit feedback and choose the feedback type. The updated information can be seen in the bracket. The modified value will be used to update the derived value in the Taxpayers Information Summary (TIS). The derived value is then used to prefill the ITR form of the taxpayer.

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