The Income Tax Department has recently introduced the new Annual Information Statement
(AIS) on the Compliance Portal, which furnishes comprehensive information to a taxpayer for a particular financial year. It includes information about taxpayers’ incomes, financial transactions, tax details, Income Tax proceedings, etc. It also accepts feedback from the assessees on the information shown in the AIS.
AIS displays both reported value (value reported by the reporting entities) as well as modified value (i.e., the value after considering the assessee’s feedback) for each kind of information, i.e., SFT, TDS, etc.
Objectives of the AIS
The objectives of introducing the AIS are:
Showing complete information to the assessee with a facility to provide online feedback.
Encouraging voluntary compliance and facilitating seamless prefilling of return.
Salient characteristics of the AIS
The characteristics of the AIS are:
It contains information regarding dividends, interest, securities transactions, foreign remittance information, mutual fund transactions, etc.
Summary of AIS information is displayed in the Taxpayer Information Summary (TIS) for ease of filing returns ( prefilling will be enabled in a phased manner).
Assessees will be able to submit online feedback on the information displayed in the AIS’s and download information in PDF, CSV and JSON file formats.AIS Utility will enable taxpayers to view the AIS and upload feedback offline.
The information displayed in the AIS
In the AIS, the information is displayed in Part A and Part B.
It shows general information such as PAN, name, Aadhaar number, date of birth/incorporation/formation, contact details of the assessee, etc.
Information relating to TDS and TCS;
Information relating to Specified Financial Transactions (SFT);
Information relating to the payment of taxes such as advance tax and self-assessment tax;
Information relating to the demand raised and refund initiated during a financial year;
Information relating to pending proceedings and completed proceedings;
Other information such as interest on refund, outward foreign remittance/purchase of foreign currency, etc.
For example, for interest earned on the savings bank account - account number, account type, source code, account status, the aggregate amount of interest from the savings account from the said source is shown.
Procedure to check the AIS
The steps to check the AIS online are as follows:
Log in at the Income Tax e-filing website at https://www.incometax.gov.in
After login, go to Services > Annual Information Statement (AIS).
Click on the ‘Proceed’ button.
It will take you to the compliance portal. You can view the Annual Information Statement (AIS) and Taxpayer Information Summary (TIS) on the AIS home page.
You can download the AIS and TIS by clicking on the download icon in the respective tiles. The AIS can be downloaded in PDF or JSON formats, whereas the TIS can be downloaded in PDF format.
If you download the PDF file, it will be password protected. To unlock it, enter the password as a combination of PAN (in upper case) and date of birth in case of an individual assessee or date of incorporation/formation in case of a non-individual assessee in the format DDMMYYYY without any space.
For example, if an assessee has PAN, AAAAA9876Z and the date of birth is 31st
March 1985, his password will be AAAAA9876Z31031985.
Procedure for submitting online feedback on AIS Information
The steps to submit online feedback on the AIS information are as follows:
Log in at the Income Tax e-filing portal and access the Annual Information Statement.
On accessing the AIS, the assessee will find the complete information for the chosen financial year under Part B of the statement in the following sections:
Payment of Taxes;
Demand and Refund;
Click on the appropriate tab to see the information source-wise.
An assessee can expand the source-wise information by clicking on the left-hand icon to see transaction-wise information.
Choose the “Optional” tab in the feedback column to provide feedback on the concerned transaction. An assessee can also give feedback on multiple transactions in bulk.
An assessee can select the following types of feedback:
Information is correct
Information is not completely correct
Information relates to other PAN/Year
Information is duplicate /included in other information
Information is denied
Customized Feedback. This is based on the information category. An additional option, “Income is not taxable”, would be available in the feedback options drop-down list if the transaction relates to an income.
Once the feedback is submitted, the information will reflect the modified figure in the bracket. The revised value will be used to update the derived value in the Taxpayers Information Summary (TIS).
The derived value in the TIS is then used to prefill the ITR form of the assessee.
The assessee can download the acknowledgement receipt from the activity history.
What is to be done if there is an error in the AIS or Form 26AS?
The AIS will include information currently available with the Income Tax department. According to the Income Tax Law, certain entities are liable to report high-value transactions to the department. The information in AIS will be shown only after the reporting entities furnish information to the department. There may be possibilities that the data of a particular period is not updated. Therefore, the assessees should check all the related information and report complete and accurate information in the return of income. The assessees may also follow the feedback mechanism to report mistakes in the AIS.
Which form should an assessee refer to when filing the ITR?
In case of deviation between the TDS or TCS information or the details of tax paid as shown in Form 26AS vs AIS, the taxpayer may rely on the information displayed in Form 26AS for filing the return. However, if the assessee has already filed his return of income and has found additional information in the AIS, he can revise it on the basis of the information shown in the AIS.
This will facilitate voluntary compliance and reduce underreporting of income by the assessees.
Difference between AIS and Form 26AS
Presently, Form 26AS mainly depicts details of high-value transactions and TDS/TCS transactions undertaken during the financial year.
Annual Information Statement is a way more detailed statement. It contains details of foreign remittances, purchase and sale transactions of securities/immovable properties, interest on deposits, savings account interest, etc. All the information is available in both aggregate form and transaction wise.
For example, if the taxpayer has earned savings account interest of Rs. 1,400 and interest on deposits of Rs. 35,000 from ABC bank during a particular financial year, Form 26AS will only show details of deposit interest of Rs. 35,000, on which TDS is deducted. On the other hand, the annual information statement will display the details of both transactions. In addition, the assessee can also see the details of the bank account from where the income was received, such as bank account number, bank name, account type, etc. Similarly, it will show all other financial information of the previous year, like rent received, dividends, salary, etc.
AIS covers SFT information, payment of taxes, TDS/TCS transactions, demand or refund, and other information. But, if the assessee has to check turnover, based on the details furnished in Form GSTR-3B, it is visible only in Form 26AS. AIS does not display GST details.
Hence, the Annual Information Statement (AIS) is an extensive view of information for an assessee displayed in Form 26AS with an additional facility to accept feedback from the assessees on the information displayed in AIS.