PRITI SIRDESHMUKH
May 30, 20238 min
Updated: a day ago
The simplification of tax documentation has been significantly advanced with the launch of the Annual Information Statement (AIS). AIS acts as a complete record of your financial transactions over the year, detailing TDS, TCS, interest, dividends, and more. But what exactly is AIS, and how can it streamline your tax experience? Additionally, how do you access, review, and download this crucial document?
To get answers to the above question, read this article. Explore the nature of AIS, know the process of verifying and downloading your Annual Information Statement (AIS), and understand the password format required for accessing the document. We will also cover how to provide feedback on any discrepancies or errors you might encounter.
What is an Annual Information Statement (AIS)?
Objectives of Introducing Annual Information Statement (AIS)
Features of Annual Information Statement (AIS)
Taxpayer Information Summary (TIS)
How to Check Annual Information Statement (AIS)?
What is the Password of AIS PDF? How to Open AIS PDF?
What are the Components of Annual Information Statement (AIS)?
Difference between Annual Information Statement (AIS) and Form 26AS
How to Rectify Errors in AIS? How to Submit Feedback?
What to do if there is an error in AIS or Form 26AS?
Most Asked Questions
The Annual Information Statement (AIS) is an enhanced version of the existing Form 26AS. It provides a detailed summary of a taxpayer's financial transactions throughout a specific financial year. This initiative by the Income Tax Department of India aims to give a more in-depth view of an individual's financial activities beyond just TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) details.
The objective behind introducing Annual Information Statement (AIS) are as follows:
Comprehensive Information Display: AIS aims to provide all pertinent financial information in one place, giving taxpayers a holistic view of their financial status.
Voluntary Compliance and Accurate Reporting: By making comprehensive financial information readily available, AIS encourages voluntary compliance with tax laws and helps reduce underreporting of income.
Seamless Tax Filing: AIS supports the seamless pre-filling of income tax returns, making the tax filing process easier and more efficient for taxpayers.
Deterrence of Non-compliance: The detailed disclosure of financial transactions through AIS serves as a deterrent to non-compliance and tax evasion.
The features of Annual Information Statement (AIS) are as follows:
Expanded Coverage: AIS includes additional details on various financial transactions such as interest earned, dividends received, stock market activities, and mutual fund transactions.
Feedback Mechanism: Taxpayers can review their AIS and provide online feedback if they notice discrepancies. This feedback can impact the reported data, which can be modified in the statement.
Reported vs. Modified Values: AIS displays both the original values reported by entities like banks and financial institutions and the modified values after feedback from the taxpayer, ensuring transparency and accuracy in financial reporting.
The Taxpayer Information Summary (TIS) is an essential tool that complements the Annual Information Statement (AIS) by providing taxpayers with a comprehensive overview of their financial data. This summary is designed to simplify the process of understanding and verifying income details before filing tax returns.
The TIS offers a category-wise summary that includes the following elements:
Processed Value: This is the value obtained after deduplicating information based on predefined parameters set by the tax authorities. It helps eliminate redundancies in the data reported from multiple sources.
Derived Value: This value is calculated after considering the taxpayer’s feedback on the initial data. It ensures that any corrections or adjustments requested by the taxpayer are reflected in the final data used for tax calculations.
The information provided in the TIS is crucial as it is utilized for pre-filling income tax returns, making the process more accurate and streamlined for taxpayers.
Accessing your AIS involves a simple process and can be done through the following steps:
Visit the Income Tax E-Filing Portal: Open your web browser and go to www.incometax.gov.in, the official site for all income tax-related services in India.
Login to Your Account: Use your credentials to log in. If you have not registered yet, you will have to create an account using your PAN (Permanent Account Number), which is mandatory for accessing various services offered by the portal.
Navigate to AIS Section: Once logged in, hover over or click on the ‘Services’ tab located in the main menu. From the dropdown menu, select ‘Annual Information Statement (AIS)’.
Access Your AIS: On selecting AIS, you will be directed to a page where you can view and download your Annual Information Statement.
Select the Financial Year: Choose the financial year for which you need to view/download the AIS. Also, choose AIS from amongst the two options, that is, Taxpayer Information Summary and Annual Information Statement.
Access Your TIS: On selecting TIS, you will be directed to a page where you can view and download your Taxpayer Information Summary.
When you download your Annual Information Statement (AIS) PDF from the income tax e-filing portal, you will find it is password-protected to secure your sensitive personal and financial information. Here’s how you can access your AIS PDF file:
Password Format:
The password to open your AIS PDF file is your PAN in lowercase followed by your date of birth or the date of incorporation/formation for non-individual taxpayers. It should be in the format DDMMYYYY without any spaces or special characters.
Example:
For Individuals: If your PAN is AAAAA1234A and your date of birth is 28th July 1997, your password will be aaaaa1234a28071997.
For Non-individuals: Use the date of incorporation or formation with the PAN in the same format as individuals.
AIS provides a comprehensive view of your financial activities, divided into two parts:
Part A – General Information:
This section includes your PAN, Aadhaar number, name, and date of birth or incorporation.
Contact details are also displayed, ensuring that your basic identity information is easily accessible.
Part B – Detailed Financial Information:
TDS/TCS Information: Shows details of Tax Deducted at Source and Tax Collected at Source, including codes, descriptions, and values.
SFT Information: Contains information from the Statement of Financial Transactions reported by entities, detailing SFT codes, descriptions, and values.
Payment of Taxes: Displays data related to payments like advance tax and self-assessment tax.
Demand and Refund: Details tax demands raised and refunds initiated during the financial year, including assessment year and amount.
Other Information: Includes data points from various sources such as salary (Annexure II), interest on tax refunds, foreign remittances, and details on the sale or transfer of securities.
Following are the points of distinction between AIS and Form 26AS:
To ensure your Annual Information Statement (AIS) accurately reflects your financial transactions for the year, the Income Tax Department allows taxpayers to submit feedback on the information presented. This feedback is particularly useful if there are discrepancies or errors in the data reported.
Steps to Submit Feedback in AIS:
Access the AIS Section: Log into the income tax e-filing portal at www.incometax.gov.in. Navigate to the ‘Services’ tab and select ‘Annual Information Statement (AIS)’.
Choose the Relevant Section: Within the AIS, you will find various sections displaying your financial information such as TDS/TCS information, payment of taxes, demand and refund, and other financial data. For example, if you have an issue with the Payment of Taxes section, perhaps an error in the advance tax or self-assessment tax reported.
Select the Specific Information: Click on the ‘Payment of Taxes’ section to expand and view detailed entries. Locate the entry where the error exists that you wish to address.
Submit Your Feedback: Upon selecting the specific entry, click on the option to submit feedback. Typically, there is a button or link marked ‘Optional’ or ‘Provide Feedback’ next to each entry. Click on this to open a feedback form where you can specify what the error is and provide the correct information if available.
Rectifying Errors in AIS:
Once feedback is submitted, the Income Tax Department will review the information provided and make necessary corrections.
This process may involve:
Verifying the Feedback: Checking the feedback against the data provided by financial institutions or other sources.
Updating the AIS: Correcting the values in the AIS if the feedback is accepted.
Providing Resolution: If the feedback is not accepted, an explanation will be provided as to why the data will remain unchanged.
If you discover an error in your Annual Information Statement (AIS) or Form 26AS, it is crucial to address it promptly to avoid implications of underreporting income, which could lead to penalties and interest charges from the Income Tax Department.
Steps to Address Errors in AIS or Form 26AS:
Review the Information Thoroughly: Regularly check your AIS and Form 26AS for accuracy. Compare the information with your own records, such as bank statements, salary slips, and other relevant documents.
Use the Feedback Mechanism:
For AIS: Follow the steps to submit feedback directly through the AIS section of the compliance portal. This involves logging into the e-filing portal, navigating to the AIS section, selecting the erroneous entry, and providing the correct information.
For Form 26AS: If discrepancies are related to TDS or TCS, contact the deductor (employer, bank, etc.) to ensure they have filed the correct details with the Income Tax Department.
Document Your Communication: Keep records of all communications and corrections requested from deductors or submitted through the feedback mechanism. This documentation will be helpful if discrepancies are questioned by the tax authorities.
Rectify Errors in ITR: When filing your Income Tax Return (ITR), ensure that it reflects the accurate information, considering any corrections made or pending in the AIS or Form 26AS. If discrepancies between AIS and your tax return are due to unresolved errors in AIS, make sure to disclose this in your ITR and attach relevant documentation or explanations.
Follow Up: After submitting feedback or corrections, monitor changes in your AIS or Form 26AS. It may take some time for updates to be reflected. Continue to check back regularly until the issue is resolved.
Consequences of Ignoring Errors:
Tax Notices: The Income Tax Department may send notices if there are mismatches between the income reported in your ITR and the information available in AIS/Form 26AS.
Penalties and Interest: Underreporting of income due to erroneous entries in AIS or Form 26AS can result in hefty penalties and interest charges.
Delays in Refunds: Errors can also cause delays in processing your tax refunds.
This structured approach helps ensure that any discrepancies are corrected promptly, minimizing the risk of adverse consequences from the tax authorities.
FAQ
Q1. Explain the difference between AIS and TIS.
The main difference between AIS and TIS are as follows:
AIS: Provides detailed records of financial transactions including TDS/TCS details, stock market and mutual fund transactions.
TIS: Offers a summary of income tax returns, including demand and refund status for the financial year.
Q2. Can AIS provide any help during the income tax return filing?
Yes. Using AIS the taxpayer can reconcile the income and investments, ensuring accurate and compliant income tax filings.
Q3. How is TIS useful for taxpayers?
TIS is of great help to the taxpayers. Regular checking of TIS helps monitor pending tax dues or refunds, aiding efficient financial planning and management.
Q4. Can activity history be tracked in AIS?
Yes, AIS allows tracking of activity history, displaying a summary of all actions performed including activity IDs, dates, and detailed descriptions.
Q5. What is the consequence of submitting feedback in AIS?
After feedback submission, AIS updates to show modified values alongside reported values, updates activity history, and issues an acknowledgment receipt via download, email, and SMS.
Q6. What is the role of reporting entities after discrepancies are submitted in AIS by the taxpayer?
Reporting entities, such as banks and SEBI, are notified to re-validate and report correct transaction values once discrepancies are reported.
Q7. Can a taxpayer download the AIS and TIS reports?
Yes. The taxpayer can download both AIS and TIS reports from the income tax e-filing portal for reviewing the same.
Q8. How often is AIS updated?
AIS is regularly updated as new data is received from reporting entities, ensuring the information remains current throughout the year.
Q9. What should I do if I find an error in my TIS?
If errors are found in TIS, feedback should be submitted through the AIS portal or directly to the Income Tax Department for correction.
Q10. Are AIS and TIS accessible to all taxpayers?
Yes. Both AIS and TIS are accessible to all taxpayers registered on the Income Tax Department’s e-filing portal.