Indore (Madhya Pradesh): CA Deepak Maheshwari, a senior practitioner of Income Tax, has said that before filing the return, it is necessary to match vital information.
He said that while filing the Income Tax Return (ITR) utmost care should be followed. If there is a difference of Rs 50 lakh or more between Annual Information Statement (AIS) and return, then a notice can be served even after 5 years. The Income Tax Department can now start re-assessment of tax even after 5 to 10 years in such cases.
CA Maheshwari was addressing a seminar organised by Tax Practitioners’ Association (TPA) here on Friday. He said that filing return without matching AIS (Annual Information Statement), TIS (Taxpayers Information Summary), Form 26AS (TDS and Tax Payment Statement), Bank, Demat and Mutual Fund Statements can prove to be a big mistake. If there is any error in AIS, then immediately submit the feedback.
He said that it is now necessary to choose the option for the old tax slab, if this is not done, then the new tax slab will automatically be applicable. If you want to take advantage of the old slab, and then choose clearly in ITR, otherwise you will not get the benefit of exemptions (like 80C, HRA etc.).
CA Maheshwari said that give accurate information of capital gains on sale of mutual funds and shares, sometimes in AIS, SWP, Redeem or Switch transactions of mutual funds are shown incorrectly.
Therefore, match it with the broker's report and demat statement. The information given in Form 16 is sometimes incomplete, so match it with AIS, 26AS and bank details.
Now a days, the Income Tax Department detects the difference immediately with the help of AIS based information technology. Therefore, fill the return only after matching your information, investment and transaction completely. Filing the wrong return can lead to a penalty or investigation. All taxpayers should fill ITR on time with correct information, and take guidance from a tax expert. Fill ITR before the last date and submit the return only after checking.
Earlier, TPA president CA JP Saraf said that the Income Tax Department includes information about all financial activities like your bank account, interest, share-mutual fund investments, property transactions, credit card expenses etc. in AIS (Annual Information Return). But sometimes wrong, incomplete or the same information appears repeatedly in it. For example, the same mutual fund redemption appears multiple times or the sale of the same property can be shown on two different PANs.
