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The Central Board of Direct Taxes (‘CBDT’) introduced a novel function, via its Press Release dated May 13, 2024, enabling taxpayers to provide feedback on all the financial transactions listed in the AIS.

The AIS is accessible via the compliance portal of the Income Tax website. It contains details such as income earned, taxes deducted at source (TDS), taxes collected at source (TCS), and other pertinent information from an Income Tax perspective. This system efficiently collects and disseminates data received from various sources.

According to the circular, taxpayers can submit feedback regarding the inaccuracies if the source erroneously reports a transaction. This feedback will then be automatically forwarded to the relevant source for confirmation.

Furthermore, the AIS now includes a feature displaying the status of the taxpayer’s feedback. This enables taxpayers to track whether the reporting source has partially or fully accepted or rejected the feedback.

In instances where the reporting source accepts the feedback either partially or fully, they are required to file a correction statement to rectify the necessary information accordingly.

To monitor the progress of feedback from the source, the following indicators will be displayed on the portal:

KNAV Comments:

1. This circular regarding AIS enhances transparency by providing updates on feedback confirmation status, feedback dates, response dates, and responses from reporting sources. It offers visibility into the feedback process.
2. The system expedites the resolution of discrepancies through automated and timely responses, fostering efficient communication between taxpayers and reporting sources.
3. Feedback enables taxpayers to comment on the accuracy of reporting sources, contributing to enhanced data accuracy and integrity.
4. The initiative will help reduce additional compliance burdens stemming from AIS discrepancies, such as e-campaign notices and income computation under Section 143(1) of the Income Tax Act, 1961.