Widening of Tax base

Widening of Tax base

Subject : Economy

Section: Fiscal Policy

The tax base is the total amount of assets or revenue that a government can charge tax on. For example, the assessed value is the tax base for property taxes and taxable income is the tax base for income tax. It can also be defined as the total of taxable income, taxable assets, and the assessed value of property within the government tax jurisdiction.

Widening of text base mean that the people who are filing returns should be much more. Last financial year, IT dept got  a total of 7.14 crore returns, which was much higher than the number we got the year prior.

AIS (Annual Information Statement)

On 1st November, 2021 Income Tax Department has rolled out the new AIS (Annual Information Statement) on Compliance Portal which provides comprehensive view of financial transaction done by taxpayer (i.e. PAN based transactions) in a Financial Year at one place. This includes information relating to Interest, Dividend, Business receipts, Cash deposits/withdrawals, Sale/ Purchase of Securities and units of mutual funds, investments in govt. bonds, TDS / TCS, demand and refund, Sale of land or building, foreign remittance information etc. reported by various entities to the Income Tax Department. AIS is an extensive view of information shown in Form 26AS. Along with AIS income tax department also introduced TIS (Taxpayer Information Summary). TIS provide summarised view of information provided in AIS for the taxpayer for ease of return filling.