Check Annual Information Statement(AIS) before Filing Tax Return

Introduction to Annual Information Statement(AIS)

• The Annual Information Statement (AIS) is a comprehensive overview of taxpayer information displayed on Form 26AS.
• Taxpayers can provide feedback on the information displayed on the AIS.
• AIS displays both the reported value and the updated value of TDS, SFT, Other information (i.e., the value after considering taxpayer feedback).

Objectives of AIS

The objectives of AIS are,

• Provide complete information to taxpayers, including the ability to provide online feedback.
• Encourage voluntary compliance by allowing for seamless prefilling of returns.

Important features of the Annual Information Statement

1. It includes new data such as interest, dividends, securities transactions, mutual fund transactions, international remittance data, etc.
2. Information duplication is eliminated, and a streamlined Taxpayer Information Summary (TIS) is generated for easier return filing (pre-filling will be enabled in a phased manner).
3. Taxpayers will be able to provide online feedback on the information provided in AIS, as well as download data in PDF, JSON, and CSV forms.
4. The AIS Utility will allow taxpayers to view AIS and provide feedback.
5. The AIS Mobile App allows taxpayers to view AIS and provide feedback on their handheld devices.

Structure of AIS and its Parts

Part- A

Part-A contains general information about you, such as your PAN, Masked Aadhar Number, Name of the Taxpayer, Date of Birth/Incorporation/Formation, mobile number, e-mail address, and Taxpayer’s address.

PART- B

• TDS/TCS Information: – This section displays information about tax deducted/collected at the source. The TDS/TCS Information code, Information description, and Information value are displayed.
• SFT Information: – Information received from reporting entities under the Statement of Financial Transaction (SFT) is displayed under this heading. It is possible to obtain the SFT code, Information description, and Information value.
• Tax Payments: – This section displays information about tax payments under several headings, such as Advance Tax and Self-Assessment Tax.
• Demand and Refund: – During a financial year, you will be able to see the specifics of the demand made and the refund initiated (AY and amount).
• Other Information: – This section displays details on information obtained from other sources, such as data on Annexure-II salary, interest on refunds, outward foreign remittances/purchases of foreign currency, and so on

What are the Steps for accessing Annual Information Statement?

Step-by-step Guide for Accessing AIS through e-Filing Portal
Taxpayers can access their AIS by going to the e-filing portal and logging in with their PAN or Aadhaar number:

• Step 1: Use the URL https://www.incometax.gov.in/ to access the e-filing system.
• Step 2: Click the “Login” button in the top-right corner of the webpage e-filing system
• Step 3: Enter user ID and click on “Continue” Enter user ID
• Step 4: Enter your password and click on “Continue” to navigate to the e-filing portal homepage
• Step 5: Click on the AIS tab under the service section
• Step 6: On the AIS home page you will see the two different parts

Process for AIS Preparation Steps

The following are some important steps in the information processing process:

• PAN Population: If the given information does not have a valid PAN, the PAN will be populated based on matching Aadhaar and other essential parameters.
• Information Display: In most cases, the reported information is shown next to the PAN holder. The information display logic for specific information such as property, bank account, Demat account, etc., intends to display information to relevant PAN holders for evaluation and feedback.
• Information Deduplication: When the same information is reported under different information types (for example, interest/dividend reporting in SFT and TDS), the information with the lesser value is tagged as “Information is duplicate / included in other information” by automatic rules.
• Preparation of the Taxpayer Information Summary (TIS): After deduplication of information based on pre-defined rules, a taxpayer’s aggregated information summary is created by information category. Under each information category, it displays the processed value (i.e. value obtained after deduplication of data based on pre-defined rules) and derived value (i.e. value derived by considering taxpayer feedback and processed value).

Process for  AIS Feedback

The taxpayer will have access to AIS data and will be able to provide the following types of responses in response to it.

• Information is correct
• Information is not fully correct
• Information relates to other PAN/Year
• Information is duplicate / included in other information
• Information is denied
• Customized Feedback

Processing of AIS Feedback

The AIS processing approach is as follows:

• The assessee’s feedback will be recorded in the Annual Information Statement (AIS), and the reported value and modified value (i.e. the value following feedback) will be displayed separately.
• The assessee’s input will be used to update the derived value (the value calculated after taking into account the taxpayer’s feedback) in the Taxpayer Information Summary (TIS)
• Information in AIS assigned to other PAN/Years will be processed and shown in the taxpayer’s AIS using automatic rules.
• If the assigned information is changed or refused, the feedback will be assessed according to risk management guidelines, with high-risk feedback being highlighted for further investigation.