Many taxpayers have discovered inaccurate information in their Annual Information Statement (AIS) and have had to provide feedback about it. Previously, there was no way to know whether reporting entities, such as banks, acted on this feedback. However, the Central Board of Direct Taxes (CBDT) has now updated the functionality of the AIS to include the status of the information confirmation process in real-time. This means that taxpayers can now see whether their feedback has been partially or fully accepted or rejected by the reporting source. The AIS is available through the compliance portal and can be accessed by all registered income taxpayers. To access the compliance portal, taxpayers need to log in to the e-filing ITR portal and navigate to the ‘Pending Actions’ tab. The new functionality aims to increase transparency and provide clarity to taxpayers about the action taken on their feedback. In case of partial or full acceptance, the reporting source is required to file a correction statement. The AIS will display the status of feedback confirmation, including whether the feedback has been shared with the reporting source, the date of sharing, the date of response from the source, and the response provided by the source. This new functionality is expected to help taxpayers avoid income tax intimation notices due to discrepancies between the AIS and ITR data. It provides clarity on whether further action is required after providing feedback about incorrect information in the AIS. If the reporting source does not accept the feedback, then the taxpayer needs to take necessary action. The new functionality also improves communication between taxpayers and reporting sources, allowing taxpayers to deal with sources like tax deductors, collectors, and SFT filers. The CBDT’s press release did not mention the mode of communication for informing taxpayers about the feedback provided by the reporting source. However, experts suggest that it could be through SMS and email to registered mobile numbers and email IDs. Overall, the new update in the AIS system enhances the feedback system, empowers taxpayers, and ensures accuracy in the AIS database.