Changes in Tax Deposition and Annual Information Statement (AIS) Reporting TAXCONCEPT

The Annual Information Statement (AIS) is required to show the record of all the tax deposited by an individual during the financial year. However, there may be instances where self-assessment tax paid by you while filing ITR for FY 2022-23 (AY 2023-24) is not showing in the AIS for the same financial year.

What is the problem?

This year the income tax department has made changes in how the tax paid/deposited is shown to the individual. Any tax deducted at source (TDS) or tax collected at source (TCS) continues to be reflected in one’s Form 26AS. However, any self-assessment tax and advance tax will be reflected in the AIS. Earlier, all the tax payments were reflected in Form 26AS.

An individual filing ITR will now be required to check both Form 26AS and AIS to know the total amount of tax deposited against his/her PAN.

The self-assessment tax, i.e., the tax paid while filing ITR for FY 2022-23 (AY 2023-24) must be reflected in the AIS for FY 2022-23. However, for some, their AIS for FY 2022-23 was not showing the self-assessment tax deposited.

Where to check the taxes paid while filing ITR

An individual depositing the income taxes while filing ITR for FY 2023-24 will be required to download the AIS for FY 2023-24 to ensure that self-assessment tax payments made at the time of ITR filing for FY 2022-23 are reflected.

According to Mihir Tanna, Associate Director (Direct Tax), S.K. Patodia and Associates, a Mumbai-based CA firm, “Earlier, in Form 26AS details of all taxes paid would appear in the year in which it is pertaining to. But now self-assessment tax paid for FY 2022-23, will appear in AIS of FY 2023-24 as the same is paid in FY 2023-24. So, taxpayers will find some difficulty initially in understanding the said changes.”

Why has this problem occurred?

Experts say that this is not a problem, rather it is a situation of interpreting the change.

“Currently, AIS is considering the tax challan based on the date on which it is paid, irrespective of the year for which the challan is being paid. For instance, if an individual has paid a self-assessment challan for the Financial Year 2022-23 in the month of July 2023, i.e., in the Financial Year 2023-24, it is getting reflected in the AIS of Financial Year 2023-24,” said Ankit Jain, Partner, Ved Jain and Associates, a Delhi based CA firm.

What is the solution to this problem?

Experts say that this situation does cause confusion for the taxpayers. “Hence, the government should try to correct the format since it makes more sense to have all the data relating to the same financial year in the single AIS,” said Jain.

“However, the taxpayers should not worry. They should simply check two documents at the time of ITR filing – first is AIS of next year for confirming that details of self-assessment tax and advance tax and second is Form 26AS of the relevant financial year of which ITR is being filed for confirming the details of TDS and TCS,” said Tanna.

“As long as the challan has been paid for the correct financial year, and the particulars filled in the ITR, i.e., the date, amount and BSR code, match with the challan, one will get credit for the taxes paid. The year in which the challan reflects is not of any relevance,” said Jain from Ved Jain Associates.

What if income tax details are not reflected in any AIS

“If a taxpayer has paid their self-assessment tax and it is neither showing up in the previous year’s AIS nor in the current financial year’s AIS. The taxpayer may have inputted the wrong assessment year at the time of tax payment. The only way to correct this error is to physically visit one’s nearest income tax office,” said CA Abhinit Singh, founder, Ready Accountant, a Kolkata-based educational institution.

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