Taxpayers receive a single, comprehensive account on all of their financial activities completed in a given financial year via the Annual Information account, which was implemented in November 2021. AIS facilitate to taxpayers to file correct returns with all transactions reflect in in AIS. Tax payer can check It on Income Tax Return Portal, choose AIS at ITR portal further it will redirect on compliance portal of Income Tax in India. Click on AIS or TIS for view or download it and see transactions recorded by AIS. It will helpful to proper compliance and correct informations for ITR filing online.
What is AIS?
The Annual Information Statement (AIS) is a thorough overview of the data that is shown on Form 26AS for a taxpayer. The taxpayer has the ability to comment on data that is shown in AIS. Under each part (such as TDS, SFT, and other information), AIS displays both the reported value and the modified value (i.e., value after taking taxpayer comments into consideration).
Objectives of AIS
- Display Comprehensive Information: AIS provides a detailed view of all financial transactions reported to the tax authorities, allowing taxpayers to see their complete financial picture.
- Facilitate Voluntary Compliance: By providing detailed information and capturing taxpayer feedback, AIS helps in reducing underreporting of income and encourages voluntary compliance.
- Enable Seamless Pre-filling of Returns: AIS aids in the pre-filling of tax returns, making the tax filing process easier and more accurate for taxpayers.
- Deter Non-Compliance: The comprehensive nature of AIS helps in identifying discrepancies and deters taxpayers from underreporting their income.
Salient Features of AIS
- Contains New Information: Interest, dividends, securities, mutual fund, and overseas remittance information are among the new details that AIS now includes.
- Taxpayer Information Summary (TIS): AIS offers an informational summary that simplifies the process of submitting tax returns by combining several sources. Based on this summary, the return has all pertinent information pre-filled.
How to Check Your Annual Information Statement (AIS)
In order to access the Annual Information Statement, taxpayers need to sign in to the income tax e-filing website at www.incometax.gov.in and follow these steps:
- Click “Proceed” to be directed to the AIS portal. After that, you can access the Annual Information Statement by either signing in to the website https://www.incometax.gov.in OR selecting the AIS tab. Next, select the Annual Information Statement (AIS) by clicking on the “Services Tab” on the dashboard.
- To log in, please use https://www.incometax.gov.in.After logging in, choose the “e-File” option.
- Choose Income Tax Return and then AIS to view.
- Select the Annual Information Statement by clicking the AIS tab.
AIS PDF Password: What Is It? How Can I Open an AIS PDF?
Use the following password format to unlock the PDF: PAN (in lowercase) should be entered in the format DDMMYYYY, followed by the date of birth for individual taxpayers or the date of incorporation/formation for non-individual taxpayers.
Example: Given the PAN of AAAAA1234A and the birthdate of July 28, 1997, the AIS password in this case would be aaaaa1234a28071997.
Different Types of Information Shown in AIS
AIS divide information into two primary sections:
Section A: Overview of Information
- Personal Information: Contains name, date of birth, incorporation or formation date, masked Aadhaar number, PAN, and contact information.
Section B: Comprehensive Financial Data
- TDS/TCS Information: information code, description, and values pertaining to TDS/TCS transactions.
- Tax Payment: Details pertaining to pre-payment of taxes and self-assessment taxes.
- Demand and Refund: Information on demands made and refunds started (amount and assessment year) in the course of the fiscal year.
- Other Information: Consists of information gathered from other sources, including Annexure II salary, interest on refunds, and foreign currency purchases and external transfers.
Distinction in between Form 26AS and AIS
The main purposes of Form 26AS are to show information about high-value investments, TDS/TCS transactions, and property purchases. AIS, on the other hand, offers a more thorough explanation that includes:
- Savings Account Interest: Displays interest on deposits as well as interest generated on savings accounts.
- Transaction Details: Contains details on international transfers, mutual fund transactions, and securities transactions.
- Comprehensive View: AIS shows specific and aggregate transaction information, including the bank account information from whence the revenue was received.
While AIS contains thorough financial data, including GST turnover, Form 26AS does not include GST information.
A Status Report on AIS Corrections
A new function was launched on May 13, 2024, to monitor the progress of AIS fixes or input. This feature shows the following:
- Feedback Confirmation Status: This indicates whether or not the reporting source has been notified of the feedback for validation.
- Source Response: The information provided by the reporting source about any necessary corrections.
This feature increases transparency by giving thorough details about the process of receiving comments and making corrections.
Conclusion
An essential tool for taxpayers, the Annual Information Statement (AIS) provides a thorough understanding of financial transactions and facilitates proper tax reporting. A better understanding of its characteristics, accessibility, and distinction from Form 26AS can aid taxpayers in managing their tax responsibilities. Maintaining accurate tax records and avoiding penalties requires routinely reviewing AIS, providing comments, and addressing inconsistencies.
To obtain additional details for ITR filing online, access the Income Tax e-filing portal by logging in and then selecting AIS from the e-File/AIS menu.
FAQs:
1. How Should an Error in AIS or Form 26AS Be Handled?
If you see mistakes in Form 26AS or AIS, do the following:
- Look for updates: Make sure that the income tax department has access to the most recent version of all the information.
- Report Errors: To report inconsistencies or errors, utilize the AIS feedback mechanism. This aids in data correction and keeps fines at bay.
- Rectify Errors: Use the feedback procedure to fix any errors that arise from a mismatch between AIS and ITR. The income tax agency has found numerous instances of inconsistencies that, if left unchecked, could result in fines.
2. Which form should a taxpayer use when filing an ITR?
If there are discrepancies between Form 26AS and AIS, you should primarily rely on Form 26AS for tax return filing. However, if additional information is found in AIS after filing your return, you should revise your return based on the updated information in AIS.
3. What is the Difference Between AIS and TIS
The distinctions between AIS and TIS are as follows: A detailed report of all of your financial transactions during the fiscal year, including investments and real estate acquisitions and sales, are reported to AIS. But TIS has a summary of information on your income tax returns related transactions for which details report mentioned in AIS, as well as the status of your demand and refund.
4. How to Track Activity History in AIS
- Activity ID: Unique identifier for each performed activity.
- Description: Brief details about the activity.
- Details: Additional information related to the activity.
5. What Happens After Submitting Feedback?
After providing input on AIS data, the following will be shown:
- Feedback Display: The information’s updated value and the feedback will be shown next to the reported value.
- Activity History Update: The feedback submission will be reflected in the activity history tab.
- Acknowledgment Receipt: Following a successful submission, you can download the acknowledgment receipt.
- Confirmation: Regarding the submission of feedback, email and SMS confirmations will be issued.
The original information reporter (a bank, for example) will be contacted if disparities are discovered, and they will be asked to re-validate and, if needed, correct the transactions.