Annual Information Statement (AIS): A Comprehensive Guide

The Annual Information Statement (AIS) is an extensive financial summary provided by the Income Tax Department of India. It offers taxpayers a consolidated view of their financial transactions, including income, investments, and tax-related details. AIS was introduced to promote transparency, help individuals file accurate tax returns, and reduce tax evasion.

If you are an Indian taxpayer, understanding AIS is crucial as it helps reconcile your tax data and ensures compliance with tax regulations. This article provides a detailed breakdown of AIS, its components, how to access it, and its significance.

What is Annual Information Statement (AIS)?

The AIS is a comprehensive document issued by the Income Tax Department that includes details of a taxpayer’s financial transactions reported by various sources, such as banks, mutual fund companies, and stock exchanges. It provides a broader picture of one’s taxable income beyond Form 26AS, which primarily contained TDS (Tax Deducted at Source) details.

The AIS serves two primary purposes:

• Helps taxpayers verify their income details before filing tax returns.
• Enables tax authorities to track high-value transactions and detect tax discrepancies.

Key Highlights of the Annual Information Statement (AIS)

• Enhanced Data Coverage: AIS now includes details on interest income, dividends, securities transactions, mutual fund investments, foreign remittances, and more.
• Simplified Tax Filing: A concise Taxpayer Information Summary (TIS) is provided, with pre-filled data to streamline the return filing process.
• User-Friendly Feedback System: Taxpayers can review AIS details, submit online feedback, and download information in multiple formats, including PDF, JSON, and CSV.
• Offline Access via AIS Utility: The AIS Utility allows users to view their AIS data and upload feedback even without an active internet connection.

Know More:  SEBI Registered investment advisory |  Stock investment advisory

Steps to Check Your Annual Information Statement (AIS)

Before proceeding, ensure that your PAN is registered on the Income Tax portal, as this is a mandatory requirement. Follow these steps to access your AIS:

Step 1: Log in to the Income Tax portal at www.incometax.gov.in using your PAN as the User ID and your password.

Step 2: From the dashboard, navigate to the ‘Services’ section and find the AIS option.

Step 3: Click on AIS, which will take you to the AIS homepage on the Compliance Portal. Follow the on-screen instructions.

Step 4: On the AIS homepage, you will see guidelines and available functionalities. Review these carefully.

Step 5: Select the financial year you wish to view, and your Annual Information Statement (AIS) and Taxpayer Information Statement (TIS) will be displayed. Your key details, such as Name, PAN, Aadhaar Number, and Date of Birth, will also be visible.

Step 6: If needed, you can download your AIS or TIS for future reference.

By following these steps, you can easily access and review your AIS.

Types of Information Displayed in AIS

The Annual Information Statement (AIS) serves as an expanded version of Form 26AS, offering comprehensive financial details that play a crucial role in filing income tax returns. AIS provides a detailed breakdown of your financial transactions and is categorized into two main sections:

1. Part A: General Information

This section includes essential personal details such as the Permanent Account Number (PAN), Aadhaar number, date of birth, mobile number, email address, and residential address. These details help in identifying the taxpayer and ensuring that the financial information is accurately linked to the correct individual.

2. Part B: Financial Information

This section provides an in-depth record of financial transactions categorized under different headings:

Tax Deducted at Source (TDS) and Tax Collected at Source (TCS)

The AIS captures details of any tax deducted or collected at source. This includes information about the deductor, their PAN, the amount on which tax was deducted, and the actual tax deducted. This data ensures that taxpayers have clarity on the tax already paid on their behalf and can claim credit accordingly while filing their returns.

Statement of Financial Transactions (SFT)

The SFT section records significant financial transactions reported by various financial institutions. This includes transactions such as high-value deposits, stock market investments, mutual fund purchases, and interest earned on savings accounts. Each transaction is documented with relevant details such as transaction codes, sources, and descriptions to provide complete clarity.

Payment of Taxes

This section tracks payments made by the taxpayer, including advance tax and self-assessment tax. It provides a breakdown of the tax payments, including the BSR code, payment amount, Challan Identification Number (CIN), and classification of tax under major and minor heads. This ensures taxpayers can verify that their self-paid taxes have been recorded correctly by the Income Tax Department.

Demand and Refunds

The demand and refunds section lists any tax refunds issued by the Income Tax Department, as well as any outstanding tax demands against the taxpayer. By reviewing this information, individuals can keep track of their tax obligations and ensure that any dues are cleared on time.

Other Financial Information

This section covers additional financial data such as turnover reported under GST, foreign remittances, and interest received on tax refunds. These details help provide a more holistic view of a taxpayer’s financial profile and aid in accurate tax filings.

Providing Feedback on AIS Transactions

In cases where taxpayers identify discrepancies or incorrect information in their AIS, the Income Tax Department allows them to submit feedback through the compliance portal. The process for rectifying errors is straightforward and ensures that any incorrect transactions are corrected efficiently.

To provide feedback, taxpayers must first log in to the Income Tax Compliance Portal and navigate to the AIS section. After selecting the relevant financial year, they can review the various sources of information displayed. If any transaction appears incorrect, they can expand the transaction details and access the feedback option.

When submitting feedback, taxpayers can choose from several options, including confirming that the information is correct, partially incorrect, not taxable, related to another PAN, duplicated, or denied altogether. Once the necessary corrections are made and submitted, the updated data will be reflected in the Taxpayer Information Summary (TIS) and pre-filled income tax return, ensuring accuracy and compliance.

By regularly reviewing AIS and reporting any discrepancies, taxpayers can maintain transparency in their financial records, minimize errors in tax filings, and avoid potential compliance issues.

Difference Between Annual Information Statement (AIS) and Form 26AS

Many taxpayers may confuse the Annual Information Statement (AIS) with Form 26AS. Below is a clear comparison of both:

Feature	Annual Information Statement (AIS)	Form 26AS
Introduction	Introduced in 2021, AIS provides a comprehensiveview of an individual’s financial transactions.	Existing before AIS, Form 26AS is a tax credit statement showing tax-related details.
Scope	Covers a wider range of financial data beyond tax-related transactions.	Primarily focuses on tax deducted/collected at source (TDS/TCS).
Information Included	– TDS/TCS details  – Savings account interest  – Dividend income  – Rent received  – Sale/purchase of securities & property  – Foreign remittances  – Interest on deposits  – GST turnover (if applicable)	– TDS/TCS details on salary, interest, rent, etc.  – High-value transactions reported by banks and other institutions.
Feedback Option	Taxpayers can provide feedback on reported transactions.	No option for taxpayer feedback.
Availability of Information	Shows both reported and modified values (post taxpayer feedback).	Displays only reported values without modifications.

In conclusion, the Annual Information Statement (AIS) is a vital tool for taxpayers, offering a detailed financial snapshot and ensuring compliance with tax laws. By reviewing AIS, individuals can file accurate returns, avoid legal troubles, and enhance financial planning. Make it a habit to check your AIS before filing your ITR to ensure a smooth and hassle-free tax experience.

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