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Time of India
2 days ago
- Business
- Time of India
ITR e-filing AY 2025-25: What is Annual Information Statement (AIS) and how is it different from Form 26AS? Top points for taxpayers
ITR filing FY 2024-25: When filing your income tax return for FY 2024-25 (AY 2025-26), the Annual Information Statement is an important document that every taxpayer should be aware of. Tired of too many ads? go ad free now Introduced a few years ago, the Annual Information Statement is a helpful document for transparent and easy tax compliance. The Annual Information Statement serves as a crucial document that displays comprehensive details of a taxpayer's financial transactions throughout the fiscal year. The Annual Information Statement (AIS) and Form 26AS are tools provided by the Income Tax Department to help taxpayers with accurate tax reporting. Individuals paying taxes have the ability to cross-check their income sources and ensure they align with their Form 16, Form 16A or personal financial records. The AIS system enables taxpayers to identify any inconsistencies in their declared income or tax remittances. Also Read | As AIS effectively records the majority of income sources, it aids in preventing omissions and understatements, thereby reducing the likelihood of tax avoidance penalties or evasion charges. To view their AIS, taxpayers need to visit the official e-filing website at and sign in with their account details. The statement is accessible under the 'Services' section, where users can select 'Annual Information Statement'. Users have the option to obtain their yearly statement in either PDF or JSON formats for their preferred financial year. What is the Annual Information Statement (AIS)? Sudhakar Sethuraman, Partner, Deloitte India explains that AIS is a comprehensive report capturing a taxpayer's financial transactions during a financial year such as interest income, dividends, securities transactions, and foreign remittances, offering a broader view of income sources. These transactions are reported in AIS even if there is no associated tax deduction/ collection at source (TDS/TCS). AIS allows the taxpayer to provide feedback on the transactions reported therein. The tax office considers the feedback provided by the taxpayer and AIS is updated to show original and modified values based on this feedback. There is also a facility to view all feedback provided in the form of 'AIS Consolidated Feedback' file which can be downloaded from the portal. As AIS provides securities-related transactions, it aids in comparison of the information reported in AIS with the information provided by the demat account. Securities transactions can be downloaded into excel and can be used for uploading into tax returns in the relevant sections (capital gains/business income). How is AIS different from Form 26AS? Sudhakar Sethuraman explains that unlike AIS, Form 26AS is more oriented towards TDS/TCS. Tired of too many ads? go ad free now It provides a list of incomes (such as salary, interest), TDS/TCS on these and types of tax payments such as advance tax. 'Form 26AS helps taxpayers verify the taxes paid in various forms (such as TDS, TCS, advance tax, self-assessment tax) and the total tax credit available for the relevant financial year,' Sudhakar Sethuraman tells TOI. In short, AIS gives a detailed overview of income and transactions, while Form 26AS focuses on taxes. Also Read |
Mint
3 days ago
- Business
- Mint
Income Tax: Make sure your bank account is updated to get refund on time
Income Tax: Did you file your income tax return last year, and yet not received your refund? Although unusual, this can be true. There are some taxpayers who have yet not received their income tax refund even after lapse of several months. Meanwhile, it is important to note that the last date to file income tax return (ITR) for FY 2024-25 is September 15 after the regular deadline of July 31 was extended to the new one. There could be several reasons for this. We list them here: 1. You have not added an active bank account to allow the refund to be processed. 2. Perhaps the money got transferred to the bank account which you do not regularly use. So, if you want to add the bank account to your income tax account, you need to take the following steps. 1. Visit the income tax portal and log in to your profile. 2. Now you can add a bank account. 3. The system will ask you to validate it. However, if you already have a bank account then you need to take the following steps to update the account. 1. Visit income tax (I-T) portal and log in to your profile. 2. Choose a bank account which is already added to your account. 3. Now you can update the bank account details such as account number, IFSC and account type. 4. Finally, you need to validate it to make the changes. Meanwhile, there could be delay in tax refund because of wrong filing on account of various reasons. Here we list out some of the reasons: TDS mismatch: This happens when you report lower TDS than what appears in Form 26AS. Incorrect deduction claims: This means overstating the quantum of deductions under various provisions such as section 80C or 80D. Omitting income: This happens when taxpayers do not report interest income, capital gains, or freelance earnings. Calculation mistake: This could happen when you make manual entry errors in income or tax calculations. For all personal finance updates, visit here.
New Indian Express
6 days ago
- Business
- New Indian Express
How to maximise your income tax refunds
The income tax return filing season has started. Filing return is a mandatory requirement for all taxpayers except those whose income does not exceed the basic exemption limit of Rs 2.5 lakh per annum under the old tax regime and Rs 3 lakh under the new tax regime. ITR not only helps the tax department calculate the real tax liability of a person, it also helps taxpayers to get a refund of taxes paid in excess of their liabilities. There could be several reasons for a taxpayer to get a refund. When the advance tax paid under self-assessment exceeds the actual tax liability; tax deducted at source (TDS) on income such as salary, interest on securities or debentures, dividends, or other sources is higher than the tax payable; or same income is taxed twice in India and a country with which India has a tax treaty. Also, there could be situations when a correction in the assessment process leads to reduction in tax liability or you may not have reported earlier eligible investments or expenses that qualify for tax deductions. So, while filing returns, you must take the following steps to maximise your refunds. File on time: First, always file your return on time. Delaying it not only brings penalties but can also affect your ability to claim certain benefits or carry forward losses. Claim all eligible deductions: Nehal Mota, Co-Founder & CEO, Finnovate, says, "making sure you are claiming all the deductions you're eligible for under the Income Tax Act—things like investments under 80C, health insurance under 80D, NPS under 80CCD(1B), and donations under 80G. These can significantly reduce your taxable income." Rakshith H D, CFP and Head Digital Sales, GoalTeller, advises, if you receive HRA or other allowances like travel and medical, claim them with proper proofs. Choose the right tax regime: Choosing the right tax regime is equally important. New tax regime does not allow deductions on investments and certain expenses. Charu Pahuja, CFP CM, Group Director and COO, Wise Finserv, says one of the first and most important decisions is to choose between the old and new tax regime—an option that can directly affect your home income. Reconcile your tax credits: Don't forget to check your Form 26AS before filing ITR. This is where you can see the tax that's already been deducted from your income—whether by your employer, bank, or clients. If they've deducted more than necessary, you can claim it back as a refund, but only if you've reported everything correctly. Rakshith H D says don't forget to include all TDS and advance tax paid by employers, banks, or other institutions to ensure accurate refund claims. Gather all necessary documents and report all income: Before filing your income tax return, ensure you have all necessary documents like Form 16, interest certificates, Form 26AS, AIS, and investment details to avoid missing any refund opportunities. "Report all sources of income, including bank interest or freelance earnings, to avoid future complications," says Rakshith H D of GoalTeller Offset losses: If you have incurred losses in stocks or property, set them off against your income to lower tax liability. Ensure accurate filing: Filing your return early and e-verifying it through Aadhaar OTP or net banking ensures faster processing of refunds. Finally, double-check all details, including PAN, bank account number, and deductions, before submission to ensure smooth and timely refunds. Rakshith H D says, "In case the Income Tax Department requests additional information, respond promptly to avoid delays."
News18
6 days ago
- Business
- News18
ITR Filing 2025: Know These Key Mistakes To Avoid
Last Updated: Taxpayers must avoid errors in ITR filing for AY26 to prevent issues. Common mistakes include incorrect details, mismatches, not reporting all income, and choosing wrong form. As the income tax return (ITR) filing season is going on for the assessment year (AY) 2025-26, taxpayers — whether salaried professionals, freelancers, or small business owners — must tread carefully to avoid costly errors. While digital filing has made the process faster and easier, even minor mistakes can result in notices from the tax department, delayed refunds, or penalties. The income tax department has tightened data tracking through tools like the annual information statement (AIS) and Form 26AS. With financial data increasingly interlinked and prefilled forms more common, discrepancies stand out more than ever. Incorrect personal details: Many returns are rejected or held up due to basic errors in name, PAN, Aadhaar, bank account details, or address. Ensure that all personal information matches official records. Mismatch in Form 16 and AIS/Form 26AS: Salaried individuals often rely solely on Form 16, but must cross-verify it with the AIS and Form 26AS to catch any discrepancies in income, TDS, or other tax credits. Mismatches can lead to underreporting, even if unintentional. Not reporting all sources of income: This includes savings bank interest, fixed deposit interest, dividends, capital gains from stocks or mutual funds, rental income, or foreign income. Freelancers and business owners must also disclose all receipts—even if tax hasn't been deducted at source. Choosing the wrong ITR form: Filing under the incorrect ITR form is a common error and can render the return defective. For example, ITR-1 is not meant for those with capital gains or foreign assets. Taxpayers should review the eligibility criteria before selecting the form. Filing without verification: Submitting an ITR is not the last step. The return must be verified electronically via Aadhaar OTP, net banking, or by sending a signed physical ITR-V form to CPC, Bengaluru. An unverified return is treated as not filed. Ignoring advance tax or self-assessment tax: Taxpayers with income from business, capital gains, or freelancing must pay taxes in advance if their liability exceeds Rs 10,000 in a financial year. Missing this step may lead to interest under sections 234B and 234C. This year, the last date for filing ITR for most individuals is September 15, 2025. If you've already filed and spotted a mistake, don't panic. The income tax department allows revision of returns within the stipulated time — currently until December 31, 2025, for AY 2025-26. A revised return can help correct errors and avoid penalties. First Published: June 15, 2025, 08:53 IST
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Business Standard
12-06-2025
- Business
- Business Standard
Got multiple source of income? Here's how to tax returns, use correct forms
Filing Income Tax returns (ITR) is complicated if have income from multiple sources like salary, rent, stock trading or as a social media influencer. Mistakes in disclosure or selecting forms can lead to information not matching tax records and scrutiny by the authorities. Experts explain how to avoid tax notices while filing ITR this year. Common ITR filing mistakes with multiple income sources Salaried individuals often overlook non-salary income such as interest from fixed deposits, rental income, or capital gains, says S R Patnaik, partner (head - taxation) at Cyril Amarchand Mangaldas. "Even when such income is reported, misclassification or failure to claim applicable deductions is a frequent issue, which can lead to mismatches with Form 26AS or AIS," he notes. Aarti Raote, partner at Deloitte India, says choosing the wrong ITR form is a common mistake. 'For example, someone with consultancy income in addition to salary cannot file ITR-1. They may need to file ITR-3. Filing taxes at the last minute leaves little time to reconcile income details across documents.' 'Even failing to verify your return after e-filing renders it invalid,' says Siddharth Nigotia, senior associate at SKV Law Offices. How to report multiple incomes correctly while filing ITR Maintaining records meticulously helps in the task, experts say. 'Verify income receipts from digital platforms like YouTube, stock brokers, or clients against Form 26AS and AIS before filing,' says Patnaik. He advises maintaining bank statements, invoices, and Form 16A for TDS credits to prevent mismatches. 'Include all receipts, YouTube payments, UPI credits, consulting invoices, under the appropriate head, whether it's 'income from other sources' or 'profits and gains of business or profession'. Examine every entry in your AIS for high-value transactions, TDS, dividends, and rent to avoid omissions,' says Nigotia. Raote also recommends frequent reconciliation. 'Most brokers and consultants issue annual income and TDS summaries. But it is the taxpayer's duty to verify them with the AIS and 26AS periodically.' What if you misreported an income in ITR? Missing out on disclosing income doesn't automatically mean trouble if corrected early. 'You can file a revised return under Section 139(5) by December 31, 2025,' says Patnaik. 'Doing so voluntarily, without a notice, helps you avoid penalties.' Raote notes that if you miss this deadline, 'you can still file an updated return within four years, but additional taxes and penalties would apply.' Nigotia underscores the importance of proactive revision. 'Revising before due dates generally invites no penalty; Only the interest on underpaid tax may be due.' Managing multiple bank accounts Receiving income in multiple bank accounts i.e salary account, business account, or payment apps does not impact tax liability directly, but can complicate tracking. 'All income is taxable regardless of which account it comes into,' says Nigotia. 'Even UPI receipts over Rs 50,000 per year must be reported under appropriate heads.' Patnaik advises consolidating financial data before filing to ensure no source is forgotten. 'New ITR forms also require disclosure of all bank accounts held in the year, so tracking across accounts is vital,' says Raote. If you have multiple sources of income, diligently track, classify and reconcile them for taxes. Choose the correct ITR form, check with AIS/Form 26AS, and file revisions early if needed. A little attention to detail can go a long way in keeping the taxman at bay.
