Filing your Income Tax Return (ITR) for the Financial Year 2024-25 (Assessment Year 2025-26) can be a smooth process if you take the necessary precautions. One of the most crucial steps is to thoroughly check your Annual Information Statement (AIS). Overlooking this step can lead to discrepancies, potentially resulting in income tax notices and penalties. The due date for filing ITR for FY 2024-25 has been extended to September 15, 2025, for non-audit taxpayers. Missing this deadline may result in interest charges and a late filing fee.
What is the Annual Information Statement (AIS)?
The Annual Information Statement (AIS) is a comprehensive record of all your financial transactions during a financial year. It provides a detailed view of your income sources beyond just Tax Deducted at Source (TDS) and Tax Collected at Source (TCS). The AIS includes information on:
- Salary
- Interest earned from savings accounts and deposits
- Dividends
- Rent received
- Purchase and sale of securities and immovable properties
- Foreign remittances
- Mutual fund transactions
- High credit card spends
AIS captures data from various sources, including banks and the GST Network, offering a holistic view of your financial activities.
Why is Checking AIS Important?
- Avoiding Discrepancies: The AIS helps you identify any inconsistencies in your declared income or tax remittances. By cross-checking your AIS with your financial records, you can ensure that all income is accurately reported in your ITR.
- Preventing Notices and Penalties: Errors or mismatches between your ITR and AIS can lead to income tax notices and potential penalties. The Income Tax Department uses sophisticated tools like Artificial Intelligence (AI) to detect suspicious patterns and discrepancies in tax returns.
- Ensuring Accurate Deduction Claims: The AIS data is used to verify the deductions you claim under various sections of the Income Tax Act, such as Section 80C, 80D, and 80G. Discrepancies in these claims can also trigger notices from the department.
- Comprehensive Financial Overview: Unlike Form 26AS, which primarily shows TDS and high-value transactions, the AIS offers a broader overview of your financial activities. This helps you get a complete picture of your financial standing and aids in accurate tax filing.
- Facilitating Transparent Tax Compliance: The AIS is a helpful document for transparent and easy tax compliance. It enables you to cross-check your income sources and ensure they align with your Form 16, Form 16A, or personal financial records.
How to Access and Review Your AIS
- Login to the Income Tax e-filing portal: Go to the official website (https://www.incometax.gov.in/">https://www.incometax.gov.in/) and log in using your PAN and password.
- Navigate to the AIS section: Click on the "Annual Information Statement (AIS)" tab in the main menu or go to the e-File menu, click on "Income Tax Return," and then "View AIS".
- View the AIS: You will be redirected to the AIS portal, where you can click on the AIS tile to view your Annual Information Statement.
- Download the AIS: You can download the AIS in PDF or JSON formats.
- Review the transactions: Carefully go through the records of your financial transactions and TDS to ensure that all income is declared.
What to Do If You Find Discrepancies
If you notice any incorrect data in your AIS, it's crucial to take immediate action. The Income Tax Department has simplified the AIS correction process. You can submit feedback online to correct any discrepancies.
- Submit Feedback: Locate the relevant transaction and choose "Optional" or "Add Feedback" to submit corrections.
- Monitor Feedback Status: Keep track of the status of your feedback, which will be shown as "Accepted" or "Rejected".
- Provide Additional Information: If necessary, provide additional information or documents to support your claim.
The department will verify your feedback with the original reporting source and update the AIS if the correction is confirmed.
By proactively checking your AIS and addressing any discrepancies, you can ensure accurate ITR filing, avoid potential notices and penalties, and maintain a transparent tax compliance record.
