In the current scenario, filing income tax returns is underway across the country. Meanwhile, the Income Tax Department regularly issues notifications for this purpose. Recently, the Income Tax Department has introduced a new feature in the Annual Information Statement (AIS), allowing taxpayers to verify the status of their information validation process. According to a statement by the Central Board of Direct Taxes (CBDT), the Income Tax Department has initiated a new system to display the status of information validation process in the Annual Information Statement.
Understanding the New System
The new system, called AIS, is prepared based on financial data obtained from various sources. It provides taxpayers with detailed information on their financial transactions, including feedback on the impact of taxes. In this system, taxpayers have the option to provide feedback on each transaction, helping them verify the accuracy of the data sources. Moreover, in cases of incorrect reporting, information is automatically verified by the source for confirmation.
Transparency and Improvement
According to the CBDT statement, this new system will reveal whether the feedback provided by the taxpayer has been partially or fully accepted or rejected by the source, and action has been taken accordingly. If there is partial or full acceptance in any confirmation, it is necessary to submit a correction statement by the source to rectify the information.
Expected Improvement in Transparency
CBDT hopes that through this new system, providing information to taxpayers via AIS will lead to improvements in transparency. This is another initiative that will enhance convenience and advancement in the services of the Income Tax Department.
With these measures in place, taxpayers can expect a smoother and more transparent process when it comes to their tax-related information. The introduction of such features underscores the government’s commitment to enhancing taxpayer services and ensuring compliance with tax regulations.