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December 11, 2021

Big Relief for Taxpayer, AIS data Not to be used for Income Tax Calculation says CBDT

by facelesscompliance in Income Tax

Big Relief for Taxpayer, AIS data Not to be used for Income Tax Calculation says CBDT

Income Tax Department has rolled out the new Annual Information Statement (AIS) on the Compliance Portal which provides a comprehensive view of information to a taxpayer with a facility to capture online feedback.

The new AIS includes additional information relating to interest, dividend, securities transactions, mutual fund transactions, foreign remittance information etc. The reported information has been processed to remove duplicate information. Taxpayer will be able to download AIS information in PDF, JSON, CSV formats.

Click here to know more about AIS

In an interesting article by fortuneindia.com website which says

“Amid concerns raised by some tax professionals on social media over alleged discrepancies related to stock sale and purchase data of assessees on newly-introduced Annual Information System (AIS), the Central Board of Direct Taxes (CBDT) has said that AIS data is not being used for suo moto tax liability calculation as of now.

Several professionals have pointed out that AIS is showing pledged shares as sale of shares, an entry which will enhance tax liability. They have also said that data on sale/purchase of shares is showing the day’s closing prices rather than prices at which the sale/purchase was executed.

Clarifying the points, a top official from CBDT told Fortune India, “The equity data being reflected in AIS is based on inputs from depositories.”

“The data is just there to make the tax payer aware about transactions that have been reported to the tax department by depositories and other third parties. We are not taking those transactions into account for pre-filling income tax return forms or calculating capital gains, etc, as of now, as it is a third party data,” the official added. “No tax liability computation will be done based on the data,” the official pointed out.

The official also said that AIS gives an option in the drop-down menu for raising a red flag on data sourced from third parties.”

The above interaction with CBDT was published at following link

The new Income Tax Portal has several errors while processing returns and this is the first year of AIS. Many Taxpayers are worried about wrong information captured and automatic notices may be send by income tax department without verification of the data collected from the third party. Many people because of AIS are reporting translations in Shares this year as they have no choice than to disclose the transactions and pay capital gains.

Also Read Why checking AIS is Compulsory Before Filing your Income Tax Returns

Also Read Taxpayers 50 Transactions will be reported in New Annual Information Statement (AIS)

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