The Income Tax Department is planning to broaden the scope of the Annual Information Statement (AIS) by bringing additional financial and tax-related information within its reporting framework.
The expanded AIS is expected to incorporate data relating to GST returns, foreign remittances associated with mutual fund transactions, off-market securities transactions and overseas investments. Information sourced from another taxpayer’s income-tax return may also be reflected where relevant.
The proposed expansion is aimed at providing taxpayers and tax authorities with a more comprehensive view of reported income and financial transactions. The additional data is expected to strengthen cross-verification, improve information matching and facilitate greater transparency in tax reporting.
Taxpayers may therefore need to carefully reconcile information appearing in AIS with their GST filings, investment records, foreign transactions, securities transactions and income-tax returns to identify discrepancies before filing or responding to tax-related communications. CASansaar