🌴 On the alleged discrepancies related to stock sale and purchase data of assessees on newly-introduced Annual Information System (AIS), the Central Board of Direct Taxes (CBDT) has said that AIS data is not being used for suo moto tax liability calculation as of now.
🎯 In many cases AIS is showing pledged shares as sale of shares, an entry which will enhance tax liability. The data on sale/purchase of shares is showing the day’s closing prices rather than prices at which the sale/purchase was executed.
🌀 Clarifying the points, a top official from CBDT, clarified that *The equity data being reflected in AIS is based on inputs from depositories.”
“
👉 The data is just
there to make the tax payer aware about transactions that have been reported to the tax department by depositories and other third parties.
🫐 We are not taking those transactions into account for pre-filling income tax return forms or calculating capital gains, etc, as of now, as it is a third party data,” the official added.
🥭 “No tax liability computation will be done based on the data,” the official pointed out.
🍑 The official also said that AIS gives an option in the drop-down menu for raising a red flag on data sourced from third parties.
🍍 The CBDT has rolled out AIS to capture information related to interest, dividend, securities transactions, mutual fund transactions and foreign remittances, among others, for 360-degree profiling of tax payers to plug evasion.
🍓 It will replace Form 26AS. The data is collected from agencies like depositories, property registrars and asset management companies.
Team – Intellex Strategic Consulting Pvt Ltd
Economiclawpractice.com, Venturestreets.com, Intellexconsulting.com
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