Arjuna (Fictional Character): Krishna, Can you tell me about the various types of income that are disclosed under the Annual Information Statement (AIS) as instructed by the Income Tax Department?
Krishna (Fictional Character): Arjuna, The Income Tax Department has initiated the use of a new document known as the Annual Information Statement (AIS), which provides comprehensive information regarding your financial transactions during the year. Previously, the Department would issue Form 26AS, which will now be supplanted by the AIS. This new statement is an all-encompassing record of the taxpayer’s activities, offering immense assistance in the preparation of tax returns.
Arjuna (Fictional Character): Krishna, could you elaborate on the key elements of the Annual Information Statement (AIS) that apply to Individuals and Hindu Undivided Families (HUFs)?
Krishna (Fictional Character): Arjuna, here are some important incomes or transactions reported in the AIS:
1. Salary: It comprises extensive information about salary, benefits, profits in lieu of salary, and other related components from the employer, as reported in Form 16.
2. Dividend Received: Dividends disbursed or declared by corporations are detailed in the Statement of Financial Transactions (SFT) under Form 26Q.
3. Interest from Savings Bank/Fixed Deposits: Paid, credited, or accrued interest is recorded in the SFT and reported in Form 26Q. This data is furnished to the deductee through Form 16A.
4. Interest from Income Tax Refund: Any interest accrued on income tax refunds is considered taxable income from other sources.
5. Winnings from Lottery or Online Games like Dream 11, MPL Poker, and Junglee rummy.
6. Receipts from Life Insurance Policy: Life insurance policy receipts are reported quarterly in Form 26Q. This information is provided to the deductee via Form 16A.
7. Stock Market Transactions.
8. Any receipts from Business with deducted TDS.
9. Any Business Expenditures where TCS is collected.
10. Turnover as per GST Returns.
11. Foreign Travel: Payments linked to foreign travel are detailed in TCS Form 27EQ, which is provided to the taxpayer via Form 16D.
12. Purchase and Sale of Immovable Property: The AIS reports details about the acquisition and disposal of real estate.
Arjuna (Fictional Character): Krishna, What should the taxpayer infer from this?
Krishna (Fictional Character): Arjuna, In essence, the rollout of the Annual Information Statement (AIS) by the Income Tax Department represents a significant progression towards offering taxpayers a detailed account of their financial activities over the year. The AIS, which supersedes Form 26AS, encapsulates a variety of transactions like salary, rent received, dividends, interest income, etc. This document empowers taxpayers to report their income accurately and simplifies tax return preparation. Moreover, the AIS’s availability in multiple formats allows taxpayers to effortlessly download and examine their financial data. This advent of AIS fosters transparency, accountability, and efficiency in the tax filing procedure, which benefits both the taxpayers and the Income Tax Department.
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