Income Tax (India)

The Income Tax Department introduce the new AIS & TIS, tax payers can now access the same at e-filing portal.  This prevents mis-reporting of income by tax payers.  Income tax department aimed to promote transparency and voluntary compliance of tax payers by gathering and tracing financial transactions of a tax payer from various sources. What is AIS? AIS includes comprehensive financial transactions carried out by tax payer,  an advanced version to the current Form 26AS . In addition to information relating to TDS, TCS & Taxes paid, the AIS includes information relating to interest, dividend, securities transactions, mutual fund transactions and foreign remittances.  Widely AIS Includes information relating to following categories: TDS and TCS SFT (Specified Financial Transactions) Payment of Taxes Tax Refund and Demand Pending Proceedings Completed Proceedings Other Information Note: Form 26AS will continue to exist until the new AIS is fully operational a...

  As the tax season is on, most of the clients come to CAs and say "Tax kum kar do (decrease the tax)". There is no magical wand in hands of CAs or Consultants to decrease the tax instantly. For decreasing the tax, we have to do tax planning which can't be done at the last moment. There is difference between tax planning and tax evasion. Tax evasion is nothing but theft of tax which CAs or consultants should avoid at every cost. How often I tell such clients that lets start from today so that you have to pay lesser tax of the current financial year, but clients keep on avoiding it. Tax planning is about planning your taxes in advance i.e how much you have to invest in mutual funds, LIC, medical insurance, donations etc. It can't be spontaneous. With new AIS that is available on the portal, no information can be hidden from the department. So its better you should start now. Clients at times feel reluctant to even pay advance tax and then end up paying interest which i...