What do you mean by Annual Information Statement?

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What do you mean by Annual Information Statement

All About the Annual Information Statement (AIS) – Income Tax Department initiates a new function and makes an update in Form 26AS, this update in Form 26AS which provides extensive information is called the Annual Information Statement (AIS). It is a type of extensive view of information that shows information of taxpayer regarding his each and every transactions that he make throughout the financial year.

Table of Content

Annual Information Statement (AIS)-Objective

Annual Information Statement comes with an objective for displaying entire information to the taxpayer, along with a facility to use online feedback. It enables seamless prefilling of returns as well as promotes voluntary compliances. Moreover, it helps to determine non-compliance.

This statement illustrates two types of values:

  • Reported Value ( it refers to the value that was reported by the reporting entities)
  • Modified Value (it refers to the value received after considering taxpayer’s feedback.)

Annual Information Statement (AIS) – Salient Features

The main features of the Annual Information Statement include the holistic approach of providing information relating to taxpayers. Some of the salient features of the Annual Information Statement are:

  • Incorporation of information regarding interest, dividend, securities, mutual funds, transactions, etc.
  • Taxpayer Information Summary(TIS) includes the Summary of AIS Information, which assist in filing return for the taxpayer.
  • Online Feedback can be submit by Taxpayer on AIS’s Tab. Moreover, Taxpayer can download this information in PDF’s, JSON, and CSV file formats.
  • Taxpayer can view AIS and can upload feedback in an offline mode.

Different Types of Information shown in Annual Information Statement

The information under this Statement is displayed in two parts, i.e., in A Part and Part B.

Let us briefly understand these two types of parts:

The Part A

Part A includes general information of Taxpayers such as PAN, Name, Date of Birth/formation/incorporation, Aadhar Card Number and contact details, etc.

and, Part B

This part includes the financial information of the taxpayer. These information are as follows:

  • TDS/TCS Information– Information related with TDS/TCS along-with their information code, description and value are shown.
  • Information of SFT- It displays the information from reporting entities under Statement of Financial Transaction along with their description, information value.
  • Payment of Taxes- This tab displays the information regarding taxes, such as advance tax and self-assessment tax.
  • Demand and Refund- It includes and display the information regarding demand raised and refund initiated during a financial year.
  • Other Information- This tab includes, all other details pertaining to information received from other sources, like Annexure II salary, Interest on refund, purchase of foreign currency etc,.

What is the difference between Annual Information Statement and Form 26AS?

Before we come to the point by differentiating between Annual Information Statement and Form 26AS, let us First understand what is Form 26AS is all about.

Form 26AS

Form 26AS refers to an annual statement that includes all the details about deduction of tax(TDS), tax collection, advance taxes you pay, self-assessment tax payment, information regarding refunds, regular assessment taxes, and information relating to high-value transactions, etc.

Difference between Annual Information Statement (AIS) and Form 26AS.

The Form 26AS exclusively displays the details of property purchases, high-value investment and TDS/TCS transactions undertaken by Taxpayer.

 Whereas AIS is a much more extensive statement, it includes information such as saving account interest, purchase and sale transactions of securities/immovable properties, interest on deposits, etc. All the information is available individually transactions-wise.

Under Form 26AS only interest on Deposit in a Financial year is displayed. Whereas, AIS shows both interests on deposit as well as saving account interest. Moreover, all the financial information of the previous year is also there, along-with bank account details from where the income was received.

AIS do not capture GST details and for this purpose, the taxpayer can visit GST Portal and verify its GST Annual Report under GSTR- 3B. GSTR-3B is visible only in Form 26AS.

Remedies if the error persists in AIS or Form 26AS.

Both of the functionalities are functioning for the ease and benefit of the taxpayer and as per Income Tax Department, some entities is under obligation to report high-value transactions to the department.

As per guidelines, the department will only display the information as soon as the binding entities will furnish the information. 

Further, in this procedure there arise some chances that data of a particular period is not to the point. For this, purpose only taxpayers should check all information and report complete and accurate information in income tax returns.

The Taxpayer may also, follow a feedback mechanism to report errors in AIS.

Annual Information Statement or Form 26AS?  Which one to choose at the time of filing of ITR?

If there is a discrepancy between the TDS or TCS information or the specifics of tax paid as shown on Form 26AS vs AIS.

The taxpayer can rely on the information on Form 26AS for return filing.

You can, however, alter your income tax return based on the information presented in AIS.

If you have already submitted it and discovered additional information in AIS.

The move will make voluntary compliance easier for taxpayers and eliminate underreporting of income.

File your Income Tax Return by our Tax Experts

Ending Note

It’s a great gesture by the Government of India to upbringing Annual Information Statement and for making certain changes in Form 26AS.

It will increase productivity and also help in promoting transparency in the Economy of the country because the entities which are under obligation to report high-value transactions to the department.

Further, it acts as a great tool for taxpayers for analyzing its transactions done in a financial year.

 

CA Pulkit Goyal, is a fellow member of the Institute of Chartered Accountants of India (ICAI) having 10 years of experience in the profession of Chartered Accountancy and thorough understanding of the corporate as well as non-corporate entities taxation system. His core area of practice is foreign company taxation which has given him an edge in analytical thinking & executing assignments with a unique perspective. He has worked as a consultant with professionally managed corporates. He has experience of writing in different areas and keep at pace with the latest changes and analyze the different implications of various provisions of the act.

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