The Annual Information Statement (AIS) is a complete perspective of a taxpayer's information provided in Form 26AS. Read this blog to know more.
Annual Information Statement is a detailed document that contains information about your financial transactions for a specific fiscal year (FY).It is a vital document that contains all of the specified financial transactions and related information in one location. Every taxpayer should double-check their tax returns before filing them.
The income tax department has released the download Annual Information Statement (AIS) on its e-filing website to provide taxpayers with a comprehensive picture of tax-related information. It gives taxpayers detailed information about their financial transactions. The new AIS was designed to make it simpler for taxpayers to file their returns. The new AIS not only provides a comprehensive overview of taxpayer information but also allows taxpayers to provide feedback on the information supplied.
The objective of introducing AIS is to –
- Displaying exact information to the taxpayer and allowing for online feedback
- Encourage voluntary compliance and allow for easy return prefilling
- Discourage noncompliance.
Features of Annual Information Statement
The new yearly information statement will make it easier for taxpayers to examine tax-related information on diverse earnings in one spot (AIS).
- The new AIS contains more information about interest, dividends, mutual fund transactions, stock transactions, foreign remittance information, and so on
- Taxpayers will be be able to access AIS data in PDF, JSON, and CSV forms
- If the information is wrong, pertains to another person/year, is duplicate, etc., an online feedback form is available. Feedback can also be provided by sending a large amount of information in bulk
- An AIS Utility is now available for taxpayers to watch AIS and provide feedback offline
- In the AIS, the recorded value and the value following feedback will be displayed separately. If the information is changed or denied, the source of the information should be contacted for confirmation
- Each taxpayer has also received a streamlined Taxpayer Information Summary (TIS).
Different Information that are shown in AIS
Part A- General Information
It displays general information such as the taxpayer’s masked Aadhaar number, PAN, name, date of birth/incorporation/formation, and contact information.
- TDS/TCS Information – This page displays TDS/TCS information. The TDS/TCS Information code, Information description, and Information value are displayed.
- SFT Information – This section displays information obtained from reporting organisations under the Statement of Financial Transactions (SFT). The SFT code, Data description, and Information value are all provided.
- Payment of Taxes – Tax information such as advance tax and self-assessment tax is displayed.
- Demand and Refund – Information of the demand generated and refund initiated (AY and amount) over the course of a fiscal year.
Other Information: – This section displays details of information acquired from those other sources, including such data pertaining to Annexure II interest on refund, salary, outward foreign remittance/purchase of foreign currency, and so on.
Procedure to Download Annual Information Statement (AIS)
The Annual Information Statement (AIS) can be obtained by visiting the new Income Tax e-filing page.
- Navigate to the income tax e-filing portal’s official webpage. After logging in, navigate to the services tab and choose the AIS option from the dropdown menu.
- Select the download choice after clicking the continue button. The AIS statement is available in PDF and JSON formats. Select the PDF option and enter the password.
The password will be the taxpayer’s PAN and date of birth.
- The taxpayer can access the Annual Information Statement after entering the password (AIS)
- In addition to the full AIS, the portal will display a Tax Information Summary (TIS), which includes the total sum to be used during tax filing
- AIS displays the processed value (i.e., the value obtained after information de-duplication based on pre-defined rules) as well as the derived value (i.e., the value derived after considering the taxpayer feedback and processed value)
- If taxpayers discover an error in the AIS or TIS, they can submit online comments and the information will be rectified.
It should be noted that the derived information in TIS will be automatically updated in real-time.
Difference Between AIS and Form 26A
Currently, Form 26AS primarily includes information on property purchases, high-value investments, and TDS/TCS transactions that occurred during the fiscal year.
A far more extensive statement is the Annual Information Statement (AIS). It comprises savings account interest, purchases and sales of securities/real estate, international remittances, interest on deposits, and so on. All information is available in aggregated form and individual transaction form.
If a taxpayer earns Rs 1,700 in savings account interest and Rs 42,000 in deposit interest from XYZ bank throughout the fiscal year, Form 26AS will only include the Rs 42,000 deposit interest information on which TDS is deducted. The annual information statement will display both transaction details at the same time. Furthermore, the taxpayer can view the bank details from which the revenue was received, such as the bank name, account type, account number and so on. Similarly, it will disclose all previous year’s financial information, such as rent earned, salary, dividends, and so on.
TDS/TCS transactions, SFT information, tax payment, demand or refund, as well as other information are all covered by AIS. However, if the client has to validate GST turnover based on the data provided in Form GSTR-3B, it is only visible in Form 26AS. GST information is not captured by AIS.
How to submit Feedback in AIS?
The taxpayer can provide feedback online or offline. The feedback can only be submitted online in the AIS part of the compliance portal. Navigate to the Annual Information Statement (AIS) tab. There are numerous sections, such as TDS/TCS information, SFT information, tax payment, demand and refund, and other information.
For example (refer to the screenshot below), if you go to the SFT data section and choose the data where you wish to submit feedback, clicking on the information.
- When you expand the data category, you can submit comments by selecting the ‘Optional’ button
- It will prompt you to select the type of feedback
- The changed figure in brackets will be reflected in the data
- The updated value will be used to replace the derived value in the Taxpayers Information Summary (TIS)
- The resulting value is subsequently utilised to populate the taxpayer’s ITR form.
Important Announcement for the Taxpayer
- With the implementation of AIS, taxpayers will be required to monitor their AIS on a regular basis and keep an eye out for any transactions reflected in their AIS.
- The Annual Information Statement (AIS) contains information that is currently available to the Income Tax Department. Other transactions involving the taxpayer that are not currently included in the Annual Information Statement may exist (AIS).
- Taxpayers should double-check all relevant information and present complete and accurate data on their Income Tax Returns.
- Taxpayers are asked to review the information in the Annual Information Statement as well as provide input if it needs to be changed.
- The value stated in the Taxpayer Information Summary (TIS) may well be considered when filing the ITR. If the ITR has already been submitted and some information is missing, the return may be updated to reflect the right information.
- If there is a discrepancy between the TDS/TCS information or tax payment details showcased in Form26AS on the TRACES portal and the TDS/TCS information or tax payment details displayed in AIS on the Compliance Portal, the taxpayer may rely on the data displayed on the TRACES portal for the purpose of filing ITR and other tax compliance purposes.
Which form should a taxpayer refer to at the time of filing of ITR?
In the event of a discrepancy between the TDS or TCS information or the information of tax paid shown on Form 26AS and AIS, the taxpayer may rely on the data shown on Form 26AS for return filing. If you have previously submitted your income tax return and discovered additional information in AIS, you can update it using the information presented in AIS. The move will encourage voluntary tax compliance and eliminate taxpayer underreporting of income.
If you need any signified services for ITR or e-filing and other related queries, Vakilsearch can help you. Get in touch with us today!
- Income Tax Act, 1961
- The new Income Tax Slab 2022 23
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