The In-between time Interim Budget 2024-25 will be introduced by financial Minister Nirmala Sitharaman on February 1 and specialists show that significant expense changes are far-fetched.
Nonetheless, a few steady changes can be anticipated in the financial plan, which will assist with smoothing out the course of personal expense form (ITR) recording.
One of the expected adjustments consists of expanding the scope of the Annual Information Statement or AIS, brought in Budget 2021. It can be mentioned that the Annual Information Statement (AIS) is a record brought through the authorities to simplify the manner for individual taxpayers to study their financial information in a single place.
The essential target of the AIS is to empower citizens to cross-check the monetary information turned out in their revenue assessment forms without any problem.
Bhavin Rajput, Chief, Deloitte Haskins and Sells LLP, wrote in The Monetary Times that the extent of AIS could be extended to incorporate more subtleties, for example, right worth of rental pay, interest on personal duty discount and then some.
Rajput stated that rental income earned by people is currently reflected in the AIS, especially when tenants claim an exemption from House Rent Allowance (HRA). He did point out that disparities could occur, particularly if the monthly rental income is less than the TDS threshold.
In order to rectify this, accurate reporting would be ensured by using the actual rent paid by the landlord in their AIS, which is derived from employers’ revised Form 24Q entries.
Regarding interest on income tax refunds, he stated that while the AIS records income tax refunds together with related interest, it may be improved.
The income tax refund and interest associated with it are recorded in the AIS as a single, combined sum. In certain situations, the tax department deducts TDS from the interest paid on the income tax refund; this TDS is subsequently shown on Form 26 AS. Nonetheless, individual taxpayers can obtain this information from the notification (sent following the processing of the income tax return) if the interest from the income tax refund is not subject to TDS.
