The due date for filing income tax return (ITR) for assessment year (AY) 2022-23 [financial year (FY) 2021-22] – July 31 – is fast approaching.
Individual tax-payers who have not filed their returns yet need to hurry up before it is too late. However, even before you start this process, you need to access the details in your Form 26AS as also the Annual Information Statement (AIS).
You need to ensure that the details of taxes deducted and certain high-value transactions such as cash deposited, fixed deposits, immovable property transactions and so on tally with your Form-16, bank account statements and other financial records. This is because any unresolved error or discrepancy can result in notice from the income tax department.
To understand the role that these two documents can play in your return-filing exercise and why verifying the details in these forms is important, Moneycontrol’s Preeti Kulkarni spoke to Mayur Shah, Tax Partner with EY India.
Here are the key takeaways from the discussion.
“Form 26AS displays your personal details, tax deducted at source and deposited, sources of income, taxes collected at source and also certain specified financial transactions.”
“Tax-payers need to ascertain whether all the details in Form 26AS tally with your records and the amounts are correct.”
“If you spot errors or discrepancies, you will have to write to the deductor (for instance, employers or banks) to rectify the details. You cannot make corrections on your own.”
“(it is important to rectify any errors as) I-T authorities will take into account the figures reflected in Form 26AS.”
“AIS is much more comprehensive than Form 26AS. Information collected through multiple sources is captured in AIS, but not in Form 26AS.”
“(Unlike Form 26AS) AIS offers an online grievance redressal tool. You have to indicate whether you agree with the information or not, and provide reasons for the same.”“All information collected through AIS will translate into tax information summary (TIS) that will fill up tax returns automatically. There is a possibility that AIS can be used to pre-fill tax returns - this is the future plan. We need to see how this will work out.”