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How the New AIS Correction Status Update Feature Simplifies Income Tax Return Filing

Introducing the Enhanced Annual Information Statement (AIS) Feedback System for Taxpayers

Taxpayers facing inaccuracies in their Annual Information Statement (AIS) now have a solution at hand, thanks to the revamped AIS feedback system introduced by the Central Board of Direct Taxes (CBDT). In a press release dated May 13, 2024, the CBDT announced a groundbreaking update to the AIS, allowing individuals to track the status of their correction requests in real-time.

Understanding the New AIS Feature

The enhanced AIS now incorporates a feature that reveals whether a taxpayer’s feedback has been addressed by the source, be it partially or fully, through acceptance or rejection. Accessible via the compliance portal on the e-filing ITR website (incometax.gov.in), the AIS provides a comprehensive view of the feedback confirmation from the reporting source, including the Confirmation Status, Date of Feedback Sharing, Date of Source Response, and Source Response.

If the source acknowledges the feedback, they are required to rectify the information by filing a correction statement, as stated in the CBDT’s press release. This new feature aims to augment transparency by empowering taxpayers with real-time insights into the status of their feedback.

Empowering Taxpayers

The significance of this update lies in its potential to alleviate the challenges faced by taxpayers due to incorrect AIS data. Previously, discrepancies between AIS and ITR data often resulted in income tax intimation notices for taxpayers. Mihir Tanna, an associate director-direct tax at S.K Patodia LLP, shared instances where clients encountered issues with erroneous AIS data, leading to unwarranted tax department notices. The introduction of the new AIS feature provides clarity on the necessary actions to be taken post-feedback submission, offering a streamlined process for taxpayers.

Streamlined Communication and Transparency

With the new feature, the communication process between taxpayers and reporting sources is set to become more efficient. Divya Jokhakar, a CA and Associate of the Association of Chartered Certified Accountants (ACCA) in the United Kingdom (UK), anticipates that the updated AIS will notify taxpayers about the status of their feedback, including the date of communication with the reporting source and subsequent confirmation. Furthermore, experts suggest that this streamlined communication fosters a two-way interaction, providing taxpayers with reassurance regarding the resolution of their feedback.

Evolution of the AIS Feedback System

The annual Information Statement serves as a vital repository of financial data gathered from various reporting entities, forming the basis for income tax returns. However, the inherent possibility of inaccuracies due to reporting errors necessitated the implementation of a feedback system within the AIS. With the recent update, taxpayers now have the ability to proactively address discrepancies and  monitor the progress of their correction requests.

In conclusion, the enhanced AIS feedback system represents a significant step towards greater transparency and efficiency in handling AIS-related discrepancies. By empowering taxpayers with real-time status updates and facilitating streamlined communication with reporting sources, the CBDT’s initiative is poised to positively impact the income tax filing experience for individuals.

This article delves into the transformative enhancements brought about by the revamped AIS feedback system, shedding light on the newfound empowerment and transparency it offers to taxpayers.

To learn more and navigate the updated AIS system, taxpayers are encouraged to visit the e-filing ITR portal and leverage the streamlined features on the compliance portal.

The article provides an overview of the recent enhancements made to the Annual Information Statement (AIS) feedback system, highlighting its benefits and implications for taxpayers. It emphasizes the increased transparency and efficiency in addressing AIS-related discrepancies, aiming to educate and inform readers about the impactful changes in tax filing procedures.

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