In last year during November, the income tax department had released a new Annual Information Statement (AIS) on its portal which provides a comprehensive view of taxpayer information with an option to submit feedback. Kamlesh Varshney said that the system that has been developed is a very important one that it promote voluntary compliance without actually scrutinising a taxpayer
The taxpayers must check their annual information statement every quarter and flag any discrepancies in order to help reduce wrongful HRA deductions, said a senior official from finance ministry, on 8 November.
In last year during November, the income tax department had released a new Annual Information Statement (AIS) on its portal which provides a comprehensive view of taxpayer information with an option to submit feedback. The statement includes additional information related to interest, dividend, securities transactions, mutual fund transactions and foreign remittance information.
Joint secretary in the finance ministry, Kamlesh Varshney said during an event that one should keep on checking the AIS not only filing return but also quarterly. Checking the AIS (report) would ensure if anything wrong is reported so that other person claiming some kind of benefit wrongly is caught.
He said that to ensure voluntary compliance while filing the income tax returns (ITR), AIS has played an important role.
Quoting an example, he said people declare false information to their employer to claim HRA deductions. The AIS shows declarations along with the the person in whose account the rent amount has been credited.
Varshney said that the system that has been developed is a very important one that it promote voluntary compliance without actually scrutinising a taxpayer.
AIS’ objectives include displaying complete information to a taxpayer along with a facility to capture online feedback, promote voluntary compliance and enable seamless pre- filing of return. Its another objective is to “deter noncompliance”, as according to the Income Tax website.