- Date : 04/08/2023
- Read: 3 mins
ITR filing continues to be a hassle due to dynamic AIS, which causes mismatches in data followed by a revision of returns and feedback.
ITR filing continues to be a hassle due to dynamic AIS, which causes mismatches in data followed by a revision of returns and feedback.
After the Budget 2022, many changes have been done in the tax laws. The Annual Information Statement (AIS) was introduced along with the e-verification scheme in March 2023. It means that even filing your returns, you will get notices asking for clarifications on reports the AI tool gathers. So, if you have filed your return by July 31, you need to match the AIS again. If the other party’s AIS mismatches and they get a revision request, you must also rectify your returns. The revision request is when one party waits to update its data or any details mismatch like Tax deducted at source (TDS) or sharing dividend information.
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Taxpayers and experts are still busy filing income tax returns, even after the 31st of July.
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When AIS does not match the data provided under ITR, it becomes subject to revisions and follow-ups.
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When an AI system under an e-verification scheme gathers any data against your provided data in ITR, the department officer sends notices to clarify.
Also Read: How to correct errors after submission of ITR filing?
How are tax professionals dealing with wrong AIS information?
Many taxpayers have been facing issues with their AIS information. AIS is a dynamic form that may jumble up the data and mention unidentified or long-forgotten information. Therefore, verifying AIS accuracy is crucial before filing the ITR. One of the taxpayers says some interest income is reflected in her bank account that has been closed for the past ten years. This interest income is reflected in her AIS statement after filing tax returns.
To avoid this under-reporting and wrong AIS information, professionals match the bank statement details with the AIS and fill the higher of two amounts into the ITR to prevent further complications.
Revision of Income Tax Returns
To prevent unnecessary actions or income tax notices, one must file a revised income tax return with updated and correct information (if any). This year, Income Tax experts expect lots of revisions in filing returns as per the data given by the clients. The Income Tax officer may send a notice to clarify the data you have reported under the Income Tax return.
Response to e-verification scheme
The system under the e-verification scheme gathers information and checks its accuracy. If there is any mismatch or discrepancy in the field returns, it sends notices to the taxpayers. Last year, around 66,000 taxpayers got e-verification notices. So, if you receive any notice, respond and correct it within the specified time frame.
Also Read: Know how AIS mobile app helps in return prefiling?
If any mismatch happens with AIS information, correct and revise the returns to solve errors and pay the tax. The AI system under the e-verification scheme collects data and sends notices if taxpayers try to evade taxes.
Find the latest articles on tax planning here.
Disclaimer: This article is intended for general information purposes only and should not be construed as investment or legal advice. You should separately obtain independent advice when making decisions in these areas.
