Check this before filing ITR!

Filing your ITR or Income Tax returns is one of the most crucial financial tasks you undertake during the year. It is very important to file this on time, every year. But before filing your returns, it is important to check a few documents, since ignoring them could increase your chances of committing mistakes in your returns, which could also lead to you getting a notice from the IT department.

One of such document is AIS, or Annual Information Statement. Let’s understand what is AIS, why it is needed during ITR filing, and the whys and hows of rectifying any mistakes in your ITR.

The IT department began providing AIS, or Annual Information Statement in November, 2021. This is an extensive and important financial document that contains details of all financial transactions you’ve undertaken during the year. This is a much more comprehensive form of Form 26AS. Note that form 26AS has details of any properties you’ve bought during the year and any high-value investments you’ve made, along with accounts of TDS, or tax deducted at source, and TCS, or tax collected at source.

Along with all the details mentioned in Form 26AS, AIS also contains information about advance tax, self assessment tax, interest earned on savings account, dividend, purchase and sale of securities and other intangible property, foreign remittances, refunds, interest on FD, GST turnovers and more. In short, AIS is a comprehensive account of all the financial transactions undertaken by the taxpayer. Moreover, if you find any irregularities in your AIS, you can also provide feedback on the same and get it corrected.

How to download AIS
You can download AIS and check the same on the e-filing portal of the Income tax department (https://eportal.incometax.gov.in/). Login using your PAN and password. You will find the AIS option in the menu. Once you click on it, you will be led to a different window of the compliance portal. Select AIS, and download it. You can download  the AIS app as well.

Now, lets understand why it is important to check your AIS.
Let’s assume you forgot to download and check your AIS while filing your ITR this year. Your AIS was erroneous, and you did not correct the same. Suppose you earned interest on a bank account that was closed 2 years ago.

Since the account was closed, the interest was not credited to you. So, you did not disclose the same in your ITR. However, your AIS reflected that the interest amount has been deposited. In such a case, the IT department can send you a notice demanding additional tax. That is why it is important to check and rectify your AIS.

If you notice a mistake in your AIS, log back into the e-filing portal and click on the AIS option. Once you click on it, you will find 2 options, namely AIS and TIS, or taxpayer information summary. Upon clicking on AIS, you will see 2 parts, A and B. Select the wrong information, and submit your feedback using the optional option. You will find a few choices here, which you can choose per their applicability on your situation. You might also be asked to furnish relevant documents.

Before filing returns, the taxpayers should definitely check their AIS, and ensure that the income shown under ITR is commensurate with your AIS. Any kind of mismatch can attract an IT notice. Most people only check their AIS only while filing returns. It is advisable to check your ITR every 3 months, and immediately report any mistake you find.