Everything you need to know about Annual Information Statement


In one of the recent updates to the compliance portal of the Income-tax department, assesses can now access the Annual Information Statement (AIS). An AIS is a comprehensive statement of financial transactions made by a taxpayer in a financial year.

The AIS is meant to make the return filing process easier for taxpayers. However, many taxpayers have doubts over the utility of the statement and are also confused as to how it is different from Form 26AS.

So, to clarify all your doubts and queries, we will discuss the Annual Information Statement (AIS) in detail.

What is Annual Information Statement (AIS)?

As stated above, AIS is a comprehensive statement of financial transactions made by a taxpayer in a financial year. Taxpayers can access the statement by logging in to the income tax website.

AIS can be seen as an extension of Form 26AS, which not only contains details of taxes deducted but also contains other details such as interest, mutual fund, and securities transactions, dividends, foreign remittances, etc.

The main objectives of AIS are to introduce transparency among taxpayers, promote the voluntary filing of income tax returns, enhance the return filing experience of taxpayers, and prevent non-compliance.

Content of AIS

The Annual Information Statement (AIS) broadly consists of two parts-

  1. Part A: This part contains basic general details about the taxpayer, like
  • PAN
  • The Name of the Assessee
  • Date of Birth
  • Aadhar Number’s last four digits
  • Mobile No.
  • Email Id
  • The Address of the Assessee
  1. Part B: This part contains details of financial transactions like
  • TDS/TCS Information
  • Payment of Taxes (Advance Tax, Self-Assessment Taxes, etc.)
  • Salary, dividends, foreign remittances, and other special financial transactions
  • Income Tax Demand and Refund Details
  • Other financial information, as notified.

The distinction between AIS and Form 26AS

While Form 26AS enlists financial transactions on which tax has been deducted by the payer, AIS includes full details of interest from deposits and saving bank accounts, special financial transactions, income tax refund, etc.

As of now, a taxpayer can access both AIS and Form 26AS. However, in the case of a mismatch between TDS/ TCS information as stated in Form 26AS and in AIS, a taxpayer should rely on the information in Form 26AS.

How to access AIS?

Step 1. Login in to your account on the government’s e-filing portal at www.incometax.gov.in

Step 2. Under the ‘Services’ tab, select ‘Annual Information Statement (AIS)’. A pop-up will appear. Click on ‘Proceed’ and you will be redirected to another website.
Step 3:
Choose between Taxpayer Information Summary (TIS) or Annual Information Statement (AIS). It will also show the financial year for which AIS is being downloaded, your PAN, and your name.

Step 4: Select the download option from the dropdown list on the AIS box. A pop-up will appear asking you to select the format between PDF and JSON, for downloading AIS.

The PDF file is password protected. The password is a combination of the taxpayer’s PAN and date of birth. For example, if the taxpayer’s PAN is AAAA1234A and the date of birth is March 15, 1987, then the password to open the PDF format of AIS will be AAAA1234A15031987.

Conclusion

The AIS is a welcome step for taxpayers as most of the taxable financial details are available in a single place and the risk of omission of material financial transactions is minimal.

At the same time, AIS puts an increased onus on taxpayers to ensure they check the information under AIS on a regular basis in order to avoid the risk of receipt of notices from tax authorities.