The Ministry of Finance, through the Central Board of Direct Taxes (CBDT), has introduced a new feature in the Annual Information Statement (AIS) accessible via the compliance portal on the Income Tax Department’s e-filing website. This enhancement allows taxpayers to monitor the confirmation process of the information displayed in real-time. Taxpayers can now assess whether their feedback on the accuracy of reported financial transactions has been acknowledged and acted upon by the relevant Source or Reporting Entities. The AIS presents a comprehensive overview of various financial activities that may impact tax liabilities, collated from diverse sources.
Within the AIS, taxpayers have the option to provide feedback on each transaction, enabling them to highlight inaccuracies in the data sourced from Reporting Entities. The CBDT has automated the process of seeking confirmation from these entities, initially focusing on data from Tax Deductors/Collectors and Reporting Entities. The recent update includes a feature to track the status of this confirmation process. Taxpayers can now observe whether their feedback has been reviewed by the Source, and if so, whether it has been partially or fully accepted or rejected. If corrections are required, the Source is expected to submit a correction statement.
The new functionality within the AIS offers transparency by providing details such as whether feedback has been shared for confirmation, the date of feedback sharing, the date of Source response, and the nature of the Source’s response. This initiative aligns with the Income Tax Department’s commitment to simplifying compliance procedures and enhancing taxpayer services, ultimately facilitating smoother interactions between taxpayers and regulatory entities.
Ministry of Finance
CBDT releases new functionality in AIS for taxpayers to display status of information confirmation process in real-time
Taxpayers can now check whether their feedback is acted upon by the Source/Reporting Entities
Posted On: 13 MAY 2024
The Annual Information Statement (AIS) is available to all registered Income Taxpayers through the compliance portal, accessible through the e-filing website (www.incometax.gov.in). AIS provides details of a large number of financial transactions undertaken by the taxpayer which may have tax implications. AIS is populated based on the financial data received from multiple information sources.
In AIS, taxpayer has been provided with a functionality to furnish feedback on every transaction displayed therein. This feedback helps the taxpayer to comment on the accuracy of the information provided by the Source of such information. In case of wrong reporting, the same is taken up with the Source for their confirmation, in an automated manner. It may be noted that, information confirmation is currently made functional with regard to information furnished by Tax Deductors/Collectors and Reporting Entities.
The Central Board of Direct Taxes (CBDT) has now rolled out a new functionality in AIS to display the status of information confirmation process. This will display, whether the feedback of the taxpayer has been acted upon by the Source, by either, partially or fully accepting or rejecting the same. In case of partial or full acceptance, the information is required to be corrected by filing a correction statement by the Source. The following attributes shall be visible to the taxpayer for status of Feedback confirmation from Source.
- Whether feedback is shared for confirmation: This will let the taxpayer know if the feedback has been shared with the Reporting Source for confirmation or not.
- Feedback Shared On: This will let the taxpayer know the date on which the feedback has been shared with the Reporting Source for confirmation.
- Source Responded On: This will let the taxpayer know the date on which the Reporting Source has responded on the feedback shared with it for confirmation.
- Source Response: This will let the taxpayer know the response provided by the Source on the taxpayer’s feedback (if any correction is required or not).
This new functionality is expected to increase transparency by displaying such information in AIS to the taxpayer. This is another initiative of the Income Tax Department towards ease of compliance and enhanced taxpayer services.
