Taxpayers need to check the annual information report (AIS) every three months on the income tax portal to note the discrepancies. By doing so, the move will help reduce the incidence of wrong HRA deductions. Last year, in the month of November, the Income Tax department launched an AIS facility on its portal to provide a comprehensive view of taxpayer information and allow the option to submit answer. According to the Ministry of Finance, taxpayers should not only check the AIS on the portal for business operations but every quarter.

At an event, Finance Ministry Joint Secretary Kamlesh Varshney said, “You must verify your AIS, not only at the time of restoration but every three months. other people who cannot claim any kind of benefit should be caught,” PTI reported.

Varshney added that AIS plays an important role in ensuring voluntary compliance as it provides details of all financial transactions to be analyzed during filing of income tax return (ITR).

He also gave an example as tax officials said that many people were sending false declarations to their employers about the rent paid to claim HRA deduction. According to him, these statements will also be available in the AIS of the person whose account received the rent money.

Therefore, he advised taxpayers to check the AIS every quarter, and if there is a discrepancy – they should send a response immediately so that the other person who is wrongly claiming some kind of benefit can be caught.

According to the Income Tax website, the Annual Information Statement (AIS) is a comprehensive view of information for taxpayers presented in Form 26AS. Taxpayers can provide feedback on the information presented in the AIS. AIS shows the reported value and the modified value (ie value after considering the taxpayer’s feedback) under each section (ie TDS, SFT, other information).

The purpose of AIS is to show complete information to taxpayers with tools to download answers online, as well as promote voluntary compliance and allow pre-filing of returns.

Note that AIS is an extension of Form 26AS.

Whereas Form 26AS shows information about real estate purchases, capital investments, and TDS/TCS transactions made during the financial year. However, AIS also includes details of interest on savings accounts, dividends, rent received, purchase and sale of securities/immovable assets, remittances from abroad, interest on deposits, GST turnover, etc.

Here’s how you can view your AIS.

Step 1: Log on to the Income Tax website — www.incometax.gov.in

Step 2: Click on “Annual Information Statement (AIS)” under the “Services” tab from the e-filing portal after successfully logging in to the e-filing portal.

Step 3: Click on the AIS tab, on the home page.

Step 4: Select the relevant FY and click on the AIS tile to view the annual statement.

AIS information is divided into two parts. First, general information includes details like PAN number, Aadhaar number, name, mobile number, date of birth, etc. Second is TDS/TCS information.

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