Global Daily Tax News, India Improves Annual Information Statement, (May 15, 2024)

India's Central Board of Direct Taxes has announced improvements to the Annual Information Statement (AIS) service.

Accessible through India's e-filing portal, the AIS contains information received by the tax agency from third parties regarding financial transactions undertaken by taxpayers that may have tax implications.

The service includes details of property purchases, high-value investments, transactions subject to tax withholding, savings account interest, dividend income, rental income, purchases and sales transactions of securities/immovable property, foreign remittances, interest on deposits, and GST turnover, among other things.

This information is then pre-filled in taxpayers' returns.

Taxpayers can currently flag inaccuracies with information reported to the agency by third parties. This is then automatically flagged with the third-party information source for verification or amendment.

The service has now been enhanced to display whether the feedback of the taxpayer has been acted upon by the third party and its response.