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Income tax dept tracks these 46 financial transactions of yours via the Annual Information

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The newly launched Annual Information Statement (AIS) is a comprehensive statement containing details of 46 of

the financial transactions (income, investment, expenditure) undertaken by you in a financial year (FY). Sujit Bangar, Ex-IRS officer and founder, Taxbuddy.com, an ITR filing website, says, “AIS is an information statement. It provides details of all the income received from various sources irrespective of whether tax has been deducted on such income or not. Further, any investments made by you will be reflected in the AIS as well.”

Here is a look at 46 financial transactions that reflect in the AIS, as per the income tax website.

1. Salary

AIS will show information about the salary amount paid to you along with the tax deducted, if any. It will show the TAN of employer and PAN of employee. The amount mentioned in the AIS will be gross salary including all exempt allowances. Individual will be required to claim exemption and deductions as applicable while filing income tax return (ITR).

2. Rent received

This section includes rent received from various sources. This includes:

  • If you have given your PAN to your tenant and your tenant has given PAN to his employer to claim HRA exemption.
  • If you are receiving rent of Rs 50,000 or more per month;
  • If you have received rent from land, building, machinery etc. where TDS has been deducted at the rate of 10%.

As per the new income tax portal, information for rent received will be summed up at PAN level. Similarly, employer reports the PAN of landlord to whom rent is paid by an employee in Annexure II of the TDS statement. The sum of rent received from all tenants will be reflected in the Taxpayer Information Summary (TIS).

3. Balance in account

Opening of account other than savings account or fixed deposits (e.g. recurring deposit accounts) will be shown in AIS. Further, bank accounts with balance exceeding Rs 50,000 at the closing of financial year will be reflected in AIS.

4. Cash deposits

Cash deposits made in current accounts will be reflected in AIS. Also, cash deposits made in other accounts reported by financial entities, mandated to do so under income tax law, will be reflected in AIS. Form 61A has to be filed by the reporting agency that includes bank, co-operative bank, Post office, NBFC etc.

5. Cash withdrawals

Cash withdrawals made from current accounts will be reflected in AIS. Also, cash withdrawals from other accounts reported by financial entities such as bank, co-operative bank, post office etc., mandated to so under income tax law will be reflected in AIS.

6. Credit/debit card

Any credit/debit card issued to you during the financial year will be reflected in AIS.

7. Dividend

It will show dividends received by you from equity shares, mutual funds. Further, tax deducted by the companies, mutual fund houses will also be reflected in the AIS. Dividend income will be listed on the basis of PAN of the reportee, information source and value.

8. Interest from savings bank

Interest paid, credited or accrued on savings account held by you during the financial year is reported in the AIS. Do keep in mind that interest earned from savings account is taxable in your hands. However, you are allowed to claim deduction of up to Rs 10,000 under section 80TTA except for senior citizens and super citizens.

9. Purchase of time deposits

If you have made any investments in time deposits (such as bank fixed deposits), then such investments will be reflected in AIS. Reporting entity includes bank, NBFC, post office etc.

10. Interest from deposits

This section includes interest received by individuals from various deposits like fixed deposits, recurring deposits. If any tax has been deducted, then it will be reflected as well. Reporting entities, such as banks inform the income tax department about the interest paid/credited/accrued on fixed deposits and recurring deposits. Reporting entities include banks, post office etc.

Interest from fixed deposits and recurring deposits are fully taxable. However, senior citizens and super senior citizens can claim deduction of Rs 50,000 under section 80TTB. This section covers interest received from savings account, fixed deposits, recurring deposits, post office schemes etc.

11. Purchase of securities and units of mutual funds

Buying of shares, bonds, mutual fund units etc. will be reflected in AIS. Information relating to purchase of mutual funds is reported to the income tax department by the AMC.

12. Sale of securities of units and mutual fund

Registrar and Transfer Agents (RTAs) and depositories report sale transactions based on PAN, name and other details etc. of an individual to the income tax department. The capital gains accrued from the sale of units of mutual funds will be classified on the basis of holding period. The capital gains will be reflected in the AIS.

13. Interest from other sources

If you have received the interest from sources other than savings account, term deposits, recurring deposits, then such interest information will be reported to the income tax department by the paying entity. This interest income received from these other sources will also be listed in your AIS.

14. Cash payments

Cash payments made for goods and services, purchase of bank drafts or pay orders or bankers’ cheque, prepaid instruments in cash, bullion and jewellery etc. will be reflected in AIS, wherever these payments are made to the reporting entity as mandated under the law.

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15. Receipt of accumulated balance of PF from employer u/s 111

If you have withdrawn from provident fund account or have received accumulated balance from your employer, then the amount received will be reflected in the AIS. Do keep in mind that if you have withdrawn more than Rs 50,000 before the completion of five years of service, then tax at source (TDS) will be deducted on the amount. If the withdrawal is made before the completion of five years of continuous service, then the entire amount received will be taxable. If withdrawn after 5 years, it will be exempt from tax.

16. Receipts from life insurance policy

Receipts from life insurance policy are exempted from tax under section 10(10D), provided certain conditions are met. If the conditions are not met, then receipt will be taxable, and TDS will be deducted as well. Amount received from life insurance policy will be shown in AIS. If the proceeds are tax-exempt, then you can report the same while filing income tax return.

17. Withdrawal of deposits from national savings scheme

National Savings Scheme is also known as Post Office Savings Scheme. Money received from these schemes, either prematurely withdrawn or at the time of maturity, will be reflected in the AIS.

18. Interest from income tax refund

The income tax department pays interest on the income tax refund amount. The interest is calculated at the rate of 0.5% per month. The interest received on the income tax refund is taxable in the hands of individual and taxed as ‘Income from Other Sources’. If any such refund is received, then it would reflect in the AIS also.

19. Purchase of foreign currency

Foreign currency purchased for the buying of equity shares, debt instruments, real estate etc. or opening of bank account abroad or for travel for pilgrimage, medical treatment, education etc. will be reflected in AIS.

20. Rent payments

AIS will not only show the rent received by you but also rent payments made by you, provided tax has been deducted at the time of making payment. If you are paying monthly rent of Rs 50,000 or more, then you are required to deduct tax at the rate of 5% on the payment made. As a tenant, the total amount paid by you as rent will be reflected in AIS in this…

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