Annual Information System is Government New Experience introduction replacing in future Form 26 AS. Form 26 AS is Xray of Tax payers and ASI can be called MRI of Tax Payers. Many Pros and Cons are regularly being reported by the Tax Payers So Government of India in a Press Release declared that the AIS should be treated as informative now and will not be taken in Tax computation as the Data reported is by Third Party.
Expert differs on the views whether it is a Rollback. In my opinion this is not Roll back at all and is just a press release to avoid the anger of Tax payers over the newly created complications due to Huge wrong reporting specially by CDSL.
CDSL hold more than 3 Cr. D-mat accounts of Shareholders who are investing and Trading in Share Market through various exchanges.
While we trade or invest in Stock Markets then the Deliveries are being enrooted through CDSL or NSDL Share Bank. If we buy or Sell shares then the Delivery Received and being exited from CDSL are T1 or T2 basis and some time more delay. CDSL reporting to Income Tax the price when they receive and deliver the shares from their account which is completely mismatched every transactions. So according to my estimate CDSL has reported around 300 crores mismatched wrong Data to Income Tax which has created a panic and Big Anger in Tax Payers.
This is unfortunate for Tax Payers that responsible Officers making trials and experiments on Tax payers. Why the Tax payers should suffer for the wrong reporting mismatching. Why not CDSL first match their figures with the respective Brokers of Tax payers and then sent it to Tax Officials. Or why not Brokers are allowed to report directly to Tax Department like All Banks and Financial Institutions and Companies are sending Data to Tax Departments.
I trust the Anger of Tax Payers will not go vein and Government will certainly take some positive steps in this regards.
Moreover their is much scope to Reorganize the Tax structure where Wealthy and High Net worth Tax Payers First make expenditure and then Pay Tax and Salary Class first Pay Tax and then make expenditures.