The Annual Information Statement (AIS) is a comprehensive record of a taxpayer’s financial transactions, introduced as an extension of Form 26AS. It not only includes TDS and TCS details but also captures interest income, dividends, securities transactions, mutual fund activities, and more.
AIS presents two types of values:
- Reported Value: As submitted by reporting entities.
- Modified Value: Adjusted based on taxpayer feedback.
Understanding and utilizing AIS is vital for accurate tax filing and compliance.
What Is AIS?
Launched in November 2021 by the Income Tax Department, the Annual Information Statement (AIS) provides a complete view of a taxpayer’s financial activity during a financial year (FY). It is more detailed than Form 26AS and includes data related to:
- Income from various sources
- Investments and expenditures
- High-value transactions
Objectives of AIS:
- Enable full financial disclosure with feedback options
- Promote voluntary tax compliance
- Facilitate pre-filled tax returns
- Detect and deter non-compliance
How to Access and Check Your AIS
You can view your AIS via the Income Tax e-Filing portal:
Method 1:
- Visit https://www.incometax.gov.in
- Log in and click "Annual Information Statement (AIS)" on the dashboard
- Click “Proceed” to access the AIS portal
Method 2:
- Login to the e-filing portal
- Navigate to e-File > Income Tax Returns > View AIS
- Click “Proceed” to access the AIS section
Key Features of AIS
✅ Comprehensive Financial Data
AIS includes salary, interest income, dividends, capital gains, property transactions, and more—giving a clear, consolidated financial picture.
✅ Real-Time Updates
AIS is updated periodically as financial institutions report transactions. This keeps your financial overview up to date.
✅ User-Friendly Format
The AIS is designed with simple navigation and structured sections, making it easy for taxpayers to locate relevant information.
AIS vs. Form 26AS: What's the Difference?
| Feature | Form 26AS | AIS |
| Scope | TDS/TCS, high-value transactions | Expanded to include savings interest, dividends, rent, etc. |
| Feedback Option | Not available | Available |
| Aggregated Summary | Not provided | Provided via Taxpayer Information Summary (TIS) |
| Format | Text-based | PDF, JSON with Excel support |
Importance of AIS in Tax Compliance
AIS plays a critical role for both taxpayers and tax authorities:
- Accurate Pre-filling of ITRs
Enhances ease and reduces manual entry errors. - Complete Financial Visibility
Provides a comprehensive overview of income, investment, and expenditures. - Discrepancy Detection
Helps authorities identify underreporting or evasion. - Simplified Compliance
Enables more informed and confident tax filing.
What to Do If There Is an Error in AIS or Form 26AS?
If you spot discrepancies, it’s important to correct them before filing your return to avoid penalties.
Steps to Address Errors:
- Review Thoroughly
Cross-check AIS/Form 26AS against your bank statements, Form 16, and investment records. - Use the Feedback Mechanism
- For AIS: Log in > go to AIS > select the erroneous entry > provide accurate details.
- For Form 26AS: Contact the deductor (e.g., employer, bank) to correct TDS/TCS errors.
- Keep Records
Save all communication and feedback submissions for future reference. - Update ITR Accordingly
Ensure your ITR reflects accurate figures. If discrepancies remain unresolved, disclose them in the return with explanation. - Monitor Changes
Regularly revisit AIS/Form 26AS to check if updates have been processed.
Tips to Ensure a Smooth Tax Filing with AIS
- ✅ Cross-Verify with Original Records
Don't rely solely on AIS—compare it with salary slips, bank statements, and broker reports. - ✅ File Based on Actual Documents
AIS is helpful but not always 100% accurate. Use your own documents for final numbers. - ✅ Keep a Feedback Record
Save proof of any corrections you make in the AIS portal. - ✅ Recheck Before Filing
AIS may be updated close to the deadline. Review it again before submitting your return.
Conclusion
The Annual Information Statement (AIS) is a significant step toward transparency and simplification in tax compliance. It empowers taxpayers to proactively manage their filings by providing a comprehensive snapshot of financial activity. While AIS simplifies return preparation, it’s essential to review and verify all information for accuracy. By staying informed and vigilant, you can ensure smooth, accurate, and stress-free tax filing each year.
If you have any further questions or need assistance, feel free to reach out to us at admin@ushmaassociates.com or info@nricaservices.com, or contact us via call/WhatsApp at +91 9910075924.
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Disclaimer: Aim of this article is to give basic knowledge about the topic to people who are not in touch with Indian tax norms. When anybody is dealing with these kinds of cases practically, he shall consider all relevant provisions of all applicable Laws like FEMA/Income Tax/RBI /Companies Act etc.
