January 30, 2023

July 31 – the due date for submitting revenue tax return (ITR) for evaluation 12 months (AY) 2022-23 [financial year (FY) 2021-22] – is just some weeks away.

So, there’s barely any time to lose for particular person tax-payers. Even earlier than the method of accessing your ITR kind and coming into the small print, nevertheless, it’s essential tick an important field – verifying the small print in your Kind 26AS as additionally the Annual Info Assertion (AIS).

Additionally learn: All in regards to the Annual Info Assertion (AIS)

Evaluate and confirm your tax paid particulars

Begin with finishing up primary checks and have the important thing paperwork in place – Kind-16, Kind 26AS, annual data assertion (AIS), and financial institution in addition to capital good points statements. Each Kind 26AS and AIS might be downloaded from the Revenue Tax portal (incometax.gov.in) after logging in. Put merely, AIS gives in depth, complete knowledge than Kind 26AS.

Additionally watch: Find out how to entry Annual Info Assertion

Kind 26AS shows taxes deducted, collected at supply

The tax credit score assertion, or Kind 26AS, comprises particulars of tax deducted at supply (TDS), tax collected at supply (TCS), any advance tax or self-assessment tax paid, and so forth. “It is possible for you to to view the abstract of your curiosity revenue, transactions in immovable property on which TDS is deducted, and so forth – put merely, the quantum of tax paid by you throughout the earlier 12 months. It helps establish these sources of revenue on which tax has been deducted and accordingly, the taxpayer could declare credit score towards such particulars talked about in Kind 26AS,” says Suresh Surana, Founder, RSM India, a chartered accountancy agency.

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As an illustration, tax deducted by your employer in your wage or your financial institution on mounted deposit (FD) curiosity earned by you, refunds issued and in addition sure specified monetary transactions (SFT). Due to this fact, earlier than you proceed with the return-filing, it’s essential to be sure that this data is appropriate. “Earlier than submitting the revenue tax return, you need to verify your Kind 26AS in order that you don’t miss out on any revenue to report and there’s no quick declare of the tax credit score. The revenue tax division permits solely that TDS to be claimed towards tax payable which seems on this kind,” explains Archit Gupta, Founder and CEO, Clear.in.

This doesn’t, nevertheless, imply that you need to go solely by Kind 26AS. “Taxpayers mustn’t blindly depend on the knowledge in Kind 26AS, however use the identical just for the aim of reconciliation,” provides Surana.

Examine specified monetary transactions

This assertion has advanced over time to mirror sure high-value transactions – termed specified monetary transactions (SFT) too. For instance, money deposit, buy and sale of shares, items, bonds, debentures, and property particulars (past the required thresholds) can be mirrored within the assertion. So, money deposits of over Rs 10 lakh in your financial savings accounts in a monetary 12 months will mirror beneath this part. Equally, if you are going to buy a property price over Rs 30 lakh, it can present up on this assertion.

Examine each Kind 26AS  and AIS

Launched in monetary 12 months 2021-22, the annual data assertion (AIS) gives detailed data on a spread of economic transactions executed by you. “Annual Info Assertion (AIS) gives extra detailed data to the taxpayers as in comparison with Kind 26AS. As an illustration, pending and accomplished evaluation proceedings in addition to tax calls for, detailed particular monetary transactions in shares, mutual funds, sale or buy of immovable property, curiosity and dividend, overseas remittances, and so forth,” says Surana.

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AIS presents larger readability and holistic data when in comparison with Kind 26AS. “For instance, if, say financial institution PBB, has credited Rs 2,700 in your account as financial savings account curiosity and Rs 50,000 for curiosity on deposits throughout the monetary 12 months, then Kind 26AS will solely show Rs 50,000 deposit curiosity particulars on which TDS is deducted. However if you happen to verify your annual data assertion, it can present you particulars of each transactions (financial savings and deposits curiosity),” says Gupta.

As well as, additionally, you will have the ability to see your checking account particulars in AIS. Therefore, it’s a device that you just must make use of to keep away from submitting incomplete or misguided returns.

Mismatch in ITR filed and Kind 26AS can spell hassle

A comparability of your Kind-16, revenue statements and financial institution curiosity certificates, amongst different issues, may also help you detect any discrepancies and in addition the explanations for a similar. Any mismatch can result in queries and even notices from the income-tax division.

“In case of any discrepancy within the data offered in Kind 26AS, the taxpayer doesn’t have the choice of submitting suggestions and could be required to strategy the tax deductor or collector so as to rectify the error. The taxpayer could verify with these entities whether or not the proper PAN has been intimated, and the quantity of tax is correctly mirrored within the TDS return filed by them,” says Surana. Since these duties might be time-consuming, it’s best to start the return-filing course of properly prematurely so that you’ve time to finish the reconciliation and rectification, if wanted.

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Get the discrepancies in AIS rectified on the earliest

The newer facility – AIS – comes with built-in grievance redressal mechanism. To avail this facility on-line, it’s essential first log in to the revenue tax e-filing portal and entry the AIS. In case you want to elevate a dispute on any figures talked about in Half B of the assertion (which comprises revenue, TDS, SFT particulars, and so forth), it’s essential click on on the row which comprises the misguided data.

“A brand new desk with ‘particulars’ will seem under the knowledge which must be corrected. Click on on ‘non-compulsory’ beneath the suggestions column,” says Gupta. This motion will take you to the suggestions window and it’s essential choose ‘Suggestions kind’ from the drop-down menu. That you must point out the exact situation – incorrect data, partly appropriate particulars, duplicate data, and so forth.

“As soon as you choose your suggestions kind, click on on ‘Submit’ to let the I-T repair your errors. Put up such modification, the AIS will present each the worth reported by the entities in addition to the modified values within the AIS,” says Gupta.

An all-clear on the Kind 26AS and AIS fronts will pave the way in which for a clean and fast ITR submitting course of.