Information about various financial transactions executed by a person in India is obtained by the tax department from various sources based on his/her PAN details. These financial transactions are consolidated in Annual Information Statement, also referred to as AIS, by the I-T department.
AIS is a financial summary of the taxpayer with the income tax department.
What are the financial transactions reported in AIS
The entities from which PAN wise financial details are obtained include registration offices, banks, RTOs, authorised dealers dealing in foreign exchange, stock exchanges, Mutual funds, companies issuing shares, Reserve Bank of India (RBI) and all taxpayers who are liable to deduct and collect tax at source.
In addition to showing general information such as PAN, masked Aadhaar number, name, date of birth/incorporation/formation, contact details of the taxpayer (mobile number, address), it shows financial transactions carried on during a financial year by the person.
Tax department is basically trying to get as much financial data as possible to make sure that those who did not pay due taxes can get caught.
Here is a list of financial transactions that will be shown in Annual information statement (AIS);
- Salary amount paid to employee by the employer along with the tax deducted from salary. It shows TAN of the employer, PAN of the employee and different components of salary
- House rent of Rs. 50,000 or more per month. In case you have given your PAN to your tenant to claim HRA exemption, then the employer reports the PAN of the landlord to the I-T department while filing TDS statements
- Rent from land, building etc from which tax is deducted at the rate of 10%
- Amount paid and tax deducted at source (TDS) from various other payments during the financial year
- Tax Collected at source
- Dividend income from equity shares and mutual funds
- Saving account interest paid, credited or accrued by you during the financial year
- Interest from various deposits such as fixed deposits, recurring deposits paid, credited or accrued by you during the financial year
- Purchase and sale of securities
- Mutual fund transactions
- Foreign Remittances
- Details of advance tax and self assessment tax
- Outstanding demands
- Refund credited or paid
- Interest on refund
As a taxpayer you are required to cross verify this information before filing your income tax return.
In case certain information that has been included in the annual information statement (AIS) is not reflected in your tax return, then you can revise the IT return to include those details.
The main objective of the annual information system (AIS) is to help assessee to file their income tax return more accurately. In case any transaction has not been executed by you but reported in the AIS, then it should be reported online to get it corrected.
How to download Annual information statement (AIS)
To download you need to follow the following simple steps;
- Visit the new income tax efiling portal
- Login to your account
- Under the service tab, you will find the option of “Annual Information Statement (AIS)”. You need to click on that option. A pop-up window will appear on your screen. You need to click on proceed. It will take you to the new page showing you the option to download the AIS in PDF format or JSON utility.
The PDF file of AIS is password protected. You can use a combination of your PAN and date of birth to open the file. For instance, if your PAN is BBBBB0000B and your date of birth is January 1, 1990, the password to open the PDF file will be BBBBB0000B01011990.
Remember, in case of a mismatch in the information provided, you need to inform the same to the income tax department.
If you don’t inform about the mismatch to the tax department, then I-T department will assume that the information reflected in AIS is correct.
The income tax department may ask you to explain the mismatch between the information in the tax return filed by you and that in the AIS.
How AIS is different from Taxpayer Information Summary (TIS)
Along with AIS, you can also view the Taxpayer Information Summary (TIS).
TIS is a simplified way of viewing the information in AIS.
TIS shows the processed value (i.e. the value generated after deduplication of information based on predefined rules) and derived value (i.e. the value derived after considering the taxpayer feedback and processed value).
If the taxpayer submits feedback on AIS, the derived information in TIS will be automatically updated in real-time.
Any error in AIS and TIS should be corrected in AIS. If it’s corrected, TIS will be simultaneously corrected in real-time.
The derived information in TIS will be used for pre-filing of Return. As per income tax, pre-filling will be enabled in a phased manner.
