Income Tax Annual Information Statement (AIS), TIS, How to use it to File ITR

Income Tax Department has rolled out the new Annual Information Statement or AIS which provides one’s comprehensive view of information such as interest, dividend, stocks transactions, mutual fund transactions, foreign remittance information, etc. It has also provided a facility to capture feedback on discrepancies online. So if the income is in AIS, Income Tax Department knows, one cannot ignore it. A simplified Taxpayer Information Summary (TIS) has also been generated which shows the total value for the taxpayer for ease of filing return. Form 26AS on the TRACES portal will also continue in parallel till the new AIS is completely operational. This article covers AIS, TIS in detail, 50 kinds of income that are reported in AIS.  How does AIS differ from Form 26AS?

Ab Income Tax waaloon se koi bhi income chupana mushkil hi nahin namumkin hai

There is no hiding of income now from Income Tax Department.

So While Filing ITR check AIS and Form26AS also. If income is not in AIS, report it don’t hide the information.

Overview of AIS and TIS

Taxpayer Information Summary shows the summary of the total value of all transactions. It will help the taxpayer in filing returns. Also, the pre-filling option will be available later.

Annual Information Statement or AIS provides a comprehensive view of income and financial transactions such as interest, dividend, stocks transactions, mutual fund transactions, foreign remittance information, etc. You need to use it while filing ITR.

AIS is over and above Form 26AS and will replace it sometime in the future. Form 26AS gives information about the tax deducted at source, tax collected at source, details of refunds, tax defaults, and other taxes paid by a taxpayer.

One can view and download the AIS after logging to Income Tax Website

The password of the downloaded PDF file is the combination of the PAN (in upper case) and the date of birth

AIS is divided into two parts:  Part A and Part B.

• Part A contains general information such as PAN, masked Aadhaar number, name of taxpayer, date of birth etc.
• Part B contains comprehensive information on TDS, TCS, Specified financial transactions, payment of taxes, tax demand and refund and other information. Around 50 types of information are provided.

Specified financial transactions are some high-value transactions that the Government proposes to track with an intent to curb black money and widen the tax base in India. In addition to salary, it includes big cash transactions, interest, dividends, stocks transactions(both buy and sell), mutual fund transactions(both buy and sell), rental income, foreign remittance information, etc.

If there is a mistake in AIS, you can get it corrected online

With the help of AIS, you can cross-check all the financial transactions that are undertaken by you and reported to the income tax department. This would help you to check and report all the required information in your income tax return.

For example, you received a dividend of Rs 20 in a financial year. Now Dividend is to be reported as Income From other sources and is taxable as per the income tax slabs. Now, this Dividend is reported in AIS. So, you are required to report even an amount as little as Rs 20 in your ITR and pay tax on it accordingly.

Note that for FY 2020-21 AIS is not complete. There are some transactions missing. For example, in our AIS, interest from one of the saving bank account is missing, not all dividend was reported.

So While Filing ITR check AIS and Form26AS also. If income is not in AIS, report it don’t hide the information.

How to access AIS?

Login to the new Income tax e-filing portal (https://www.incometax.gov.in)

Under the Services tab click on the link Annual Information Statement (AIS)”

One can download AIS in PDF, JSON, and CSV file formats.

Password for opening AIS PDF file

PDF file,  is password protected. To unlock, enter the password as a combination of the PAN (in upper case) and the date of birth in case of individual taxpayer or date of incorporation/formation for a non-individual taxpayer in the format DDMMYYYY without any space.

For example, if the PAN is AAAAA1234A and the date of birth is 21st January 1991, your password will be AAAAA1234A21011991.

What should you refer to AIS or Form 26AS to file ITR?

Taxpayers should remember that the Annual Information Statement (AIS) includes information presently available with the Income Tax Department. There may be other transactions relating to the taxpayer which are not presently displayed in the Annual Information Statement (AIS). Taxpayers should check all related information and report complete and accurate information in the Income Tax Return.

In case there is a variation between the TDS/TCS information or the details of tax paid as displayed in Form26AS on the TRACES portal and the TDS/TCS information or the information relating to tax payment as displayed in AIS on Compliance Portal, the taxpayer may rely on the information displayed on TRACES portal for the purpose of filing of ITR and for other tax compliance purposes.

The display of Form 26AS on TRACES portal will also continue in parallel till the new AIS is validated and completely operational.

If the taxpayer feels that the information is incorrect, relates to another person/year,duplicate etc., a facility has been provided to submit online feedback. Feedback can also be furnished by submitting multiple information in bulk.

Information in TIS

Taxpayer Information Summary shows the summary of the total value of all transactions. It will help the taxpayer in filing returns. Also, the pre-filling option will be available later.

It has a summary and Annexure as shown in the images below.

TIS overview income tax AIS

TIS details

Information in AIS

AIS is divided into two parts:  Part A and Part B.

• Part A contains general information such as PAN, masked Aadhaar number, name of taxpayer, date of birth etc.
• Part B contains comprehensive information on TDS, TCS, Specified financial transactions, payment of taxes, tax demand and refund and other information. Around 50 types of information are provided.

Specified financial transactions are certain high-value transactions undertaken by citizens that the Government proposes to track with an intent to curb black money and widen the tax base in India.

For interest earned on the savings bank account, account number and type, account status, source code, the aggregate amount of interest from savings account from the said source is displayed.

Similarly, you can see the information of securities sold during the year with the date of sale/transfer, security class, and name, asset type, quantity, etc.
The information also displays the count of the transactions.

With the help of AIS, you can cross-check all the financial transactions that are undertaken by you and reported to the income tax department. This would help you to check and report all the required information in your income tax return. For instance, the dividend received by you in FY 2020-21 is taxable in your hands. Thus, you are required to report even an amount as little as Rs 50 in your ITR and pay tax on it accordingly. The AIS will help jog your memory if you forget to report this Rs 50.

Form 26AS gives information about the tax deducted at source, tax collected at source, details of refunds, tax defaults, and other taxes paid by a taxpayer.

Information relating to tax deducted or collected at source

Information related to tax deducted/collected at the source is displayed. Information code(Tax Law), information description, information source, information count, and total amount as shown below

TDS/TCS information in AIS

What is SFT Information tab?

Information received from reporting entities under SFT is displayed. You will be able to view the information category, information code, information description, information source, information count, and total amount related to the information.

SFT in AIS

What is the Payment of Taxes tab?

You will be able to view tax payment details including the Major head, Minor head, Assessment Year, Tax, Surcharge, Education Cess, Other, Total Tax, Date of Deposit and Challan Identification Number (CIN)

Taxes and Refund in AIS

What is shown in the Demand and Refund tab?

Demand- Under this tab, you will be able to view the details relating to demand

Refund- Under this tab, you will be able to view the Assessment year, mode, nature of refund, amount of refund paid and date of refund payment.

What is in Other Information tab?

Details of the information received from the other sources, such as data pertaining to Annexure-II salary, Interest on refund, Outward Foreign Remittance/Purchase of Foreign Currency etc., is displayed here.

Under this tab, you will be able to view the information category, information code, information description, information source, amount description, and total amount related to the information..

 What is inactive Information?

The information is marked as Inactive if Reporting Entity corrects/deletes information reported earlier by it.

Types of Income reported in AIS

1. Salary Income Same as earlier. Information provided by the employer to an employee in Form 16
2. Rental Income:
   1. If a Tenant (Individual/HUF) pays a rent of more than 50,000 per month then he should deduct tax before paying rent to the landlord. Tenant reports details of rent paid amount paid property details, date of payment, and tax deduction details in Form26QC.
   2. In the case of HRA, PAN of the landlord is reported by the employee to the employer if the exemption is claimed under section 10(13A). Employer reports PAN of the landlord to whom rent is paid by an employee in Annexure-II of the TDS statement (24Q).
3. Dividend Income Dividend paid by the company (reporting entity) is reported under Statement of Financial Transactions (SFT). The company paying dividend may deduct TDS from the amount paid subject to the threshold and report through form 26Q (quarterly statement). This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
4. Interest Income from Savings Account: This is new. It was not in Form 26AS.
5. Interest from Fixed Deposit: Bankdeducts tax from deposit holder paid subject to the threshold. This information is reported by the Bank/deductor in form 26Q (quarterly statement). This information is provided by the deductor to the deductee (taxpayer) in Form 16A. This was reported earlier also in Form 26AS
6. Interest from others: Interest on others (other than a savings account, term deposit, recurring deposit) is reported under Statement of Financial Transactions (SFT).  Bank/deductor at the time paying/crediting other interest (interest on securities) is liable to deduct tax from deposit holder paid subject to the threshold applicable in the act. This information is reported by the Bank/deductor in form 26Q (quarterly statement). This information is provided by the deductor to the deductee (taxpayer) in Form 16A
7. Interest from Income Tax Refund: Interest received on Income Tax Refund in the financial year is liable to be taxed as Income from other sources. Was reported in Form 26AS
8. Rent on plant and machine: Tenant paying rent is liable to deduct tax at the applicable rate as per the Act from rent paid. Details of rent on Plant & Machinery is reported by the deductor in TDS form 26Q. Tenant furnishes the details of rent paid on a quarterly basis. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
9. Winnings from lottery or crossword puzzle Payer deducts tax at the applicable rate as per act from winnings from lottery or crossword puzzle etc. Information about winnings is reported by payer in TDS form 26Q. Information is reported on a quarterly basis. Income is taxable at a special rate. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
10. Winnings from horse race: Same as Winnings from lottery or crossword puzzle
11. Accumulated balance of PF from employer Employer/recognized provided fund reports information about accumulated balance due to an employee in form 26Q. Information is reported on quarterly basis and is chargeable to tax at special rate. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
12. Interest from infrastructure Debt Fund Information relating to interest paid is reported by payer in form 27Q. Information is reported on quarterly basis and is chargeable to tax at special rate. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
13. Interest from specified company by NRI Information relating to interest paid is reported by payer in form 27Q.  This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
14. Interest on bonds and government securities Information relating to interest paid is reported by payer in form 27Q. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
15. Income in respect of units of non-resident u/s 115A(1)(a)(iiab): Information about income in respect of units of Non Resident is reported by payer in form 27Q.  This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
16. Income and long-term capital gain from units by an offshore fund u/s 115AB(1)(b) Information about income and long-term capital gain from units payable to an off shore fund is reported by payer in form 27Q. Information is reported on quarterly basis and is chargeable to tax at special rate. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
17. Income and long-term capital gain from foreign currency bonds or shares of Indian companies u/s 115AC Information about income and long-term capital gain from foreign currency bonds or shares of Indian companies is reported by payer in form 27Q.  This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
18. Income of foreign institutional investors from securities u/s 115AD(1)(i) : Information about income of foreign institutional investors from securities is reported by payer in form 27Q. Information is reported on quarterly basis and is chargeable to tax at special rate. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
19. Insurance commission Information about insurance commission received is reported by the payer in Form 26Q on a quarterly basis. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
20. Receipts from life insurance policy Receipts from a life insurance policy are exempt under section 10(10D) subject to conditions specified therein. If such conditions are not met, the receipts become taxable and tax is also deducted u/s 194DA. The information is reported by the payer in Form 26Q on a quarterly basis. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
21. Withdrawal of deposits under national savings scheme Withdrawals from NSS are taxable. Tax is also deducted on such withdrawals and reported in Form 26Q by the payer on a quarterly basis. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
22. Receipt of commission etc. on sale of lottery tickets Commission on lottery business is subject to tax deduction under section 194G. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
23. Income from investment in securitization trust : Income from investment made in securitization trust is subject to tax deduction. The payer reports such information in Form 27Q on a quarterly basis. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
24. Income on account of repurchase of units by Mutual Funds Receipt of income on account of repurchase of units by MF/UTI is subject to tax deduction under section 194F. The payer reports such information in Form 26Q on a quarterly basis. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
25. Interest or dividend or other sums payable to government
    Income from interest or dividend or other sums payable is not subject to tax deduction. The payer reports such information in Form 26Q on a quarterly basis. This information is provided by the deductor to the deductee (taxpayer) in Form 16A
26. Payment to non-resident sportsmen or sports association u/s 115BBA
    Information pertaining to amount paid to non-resident sportsmen or sports association is reported by deductor in form 27Q. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
27.  Sale of land or building
    Sales consideration of immovable property transferred is reported under Statement of Financial Transactions (SFT). The information will be shown in AIS of all sellers to enable submission of feedback. Sale of immovable property is also reported in Form 61 where PAN is not furnished by the transacting party. PAN is populated based on aadhaar and other attributes of the person. Information related to receipts under specified agreement is reported by person making payment for specified agreement entered into. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
28. Receipts from transfer of immovable property
    Information related to receipts from transfer of immovable property is reported by buyer of property in Form 26QB. This information is provided by the deductor to the deductee (taxpayer) in Form 16B.
29. Sale of vehicle Sale of motor vehicle is reported in Form 61 where PAN is not furnished by the transacting party. PAN is populated based on aadhaar and other attributes of the person.
30. Sale of securities and units of mutual fund
    In the SFT reporting of depository transactions, the estimated sale consideration for the debit transaction is determined on the best possible available price of the asset with the depository (e.g. end of day price). The taxpayer will be able to modify the sales consideration and other related information before filing the return. In the SFT reporting of depository transactions, the estimated sale consideration for the debit transaction is determined on the best possible available price of the asset with the depository (e.g. end of day price). The taxpayer will be able to modify the sales consideration and other related information before filing the return.
31. Off market debit transactions
    In the SFT reporting of depository transactions, the depository reports details of off market debit transactions. The value of transaction is computed on the basis of end of day price of the security. In case, the consideration is available, the same is also shown.
32. Off market credit transactions
    In the SFT reporting of depository transactions, the depository reports details of off market credit transactions. The value of transaction is computed on the basis of end of day price
33. Business receipts
    Information pertaining to amount paid to contractor is reported by contractee in form 26Q. This information is provided by the deductor to the deductee (taxpayer) in Form 16A. Information pertaining to amount paid to the service provider is reported by recipient of services in form 26Q. This information is provided by the deductor to the deductee (taxpayer) in Form 16A
34. Business expenses
    Information pertaining to purchase of alcoholic liquor is reported by tax collector in TCS form 27EQ (quarterly statement). This information is provided by the collector to the taxpayer in Form 27D.
35.  Rent payments
    Information is reported by person making payment in form 26QC. This information is provided by the deductor to the taxpayer in Form 16C.
36. Miscellaneous payments
    Information is reported by person making payment in form 26QD. This information is provided by the deductor to the taxpayer in Form 16D. Purchase of bank drafts or pay orders may be reported in Form 61 if PAN is not furnished by the transacting party. PAN is populated based on aadhaar and other attributes of the person
37. Cash deposits
    Information pertaining to cash deposits in an account other than current account is reported by reporting entity in form 61A. The information will be shown in AIS of all account holders to enable submission of feedback. Information pertaining to cash deposits in the current account is reported by reporting entity in form 61A. The information will be shown in AIS of all account holders to enable submission of feedback.
38.  Cash withdrawals
    Information pertaining to Cash withdrawals from the current account is reported by reporting entity in form 61A. The information will be shown in AIS of all account holders to enable submission of feedback. Sometimes, cash withdrawals from accounts other than the current account are reported by the Reporting Entity in SFT- The information will be shown in AIS of all account holders to enable submission of feedback. Information pertaining to Cash withdrawals is reported by reporting entity through TDS statement 26Q. This information is provided by the deductor to the taxpayer in Form 16A.
39.  Cash payments
    Information pertaining to Cash payments for goods and services is reported by reporting entity in form 61A. Information pertaining to Purchase of bank drafts or pay orders or banker’s cheque in cash is reported by reporting entity in form 61A. Information pertaining to Purchase of prepaid instruments in cash is reported by reporting entity in form 61A.
40. Outward foreign remittance/purchase of foreign currency
    Information of outward foreign remittance is reported by authorized dealer in form 15CC. Information about Remittance under LRS for educational loan taken from financial institutions mentioned in section 80E (Third proviso to Section 206C(1G)) is reported by authorised dealer through TCS form 27EQ for specified foreign remittances made by remitter PAN.Information about Remittance under LRS for purpose other than for purchase of overseas tour package or for educational loan taken from financial institution (Section 206C(1G(a))) is reported by authorised dealer through TCS form 27EQ for specified foreign remittances made by remitter PAN.
41.  Receipt of foreign remittance
    Information relating to payment of royalty or fees for technical services etc., paid to non- residents is reported by deductor in form 27Q. This information is provided by the deductor to the deductee (taxpayer) in Form 16A. Information is reported by authorised dealer in form 15CC for foreign remittances made by remitter PAN. Information of receipt of foreign remittance by a remittee is reported by authorised dealer in form 15CC.
42.  Foreign travel
    Information is reported by deductor in TCS form 27EQ (quarterly statement). This information is provided by the collector to the taxpayer in Form 16D. Payment in connection with travel to any foreign country may be reported in Form 61 if the PAN is not furnished by the transacting party. PAN is populated based on aadhaar and other attributes of the person.
43.  Purchase of immovable property
    Information relating to immovable property is reported by the Property Registrar through SFT. The information will be shown in AIS of all buyers to enable submission of feedback. Buyer at the time of making payment towards purchase of property is liable to deduct tax from the amount paid to the seller subject to the threshold applicable. This information is reported in form 26QB. Seller of property reports the details of property buyer in schedule CG of ITR. Payment for purchase of immovable property may be reported in Form 61 if the PAN is not furnished by the transacting party. PAN is populated based on aadhaar and other attributes of the person.
44.  Purchase of vehicle
    Information is reported by deductor in TCS form 27EQ (quarterly statement). This information is provided by the collector to the taxpayer in Form 16D. Payment for purchase of motor vehicle may be reported in Form 61 if the PAN is not furnished by the transacting party. PAN is populated based on aadhaar and other attributes of the person.
45.  Purchase of time deposits (Fixed Deposits)
    Information relating to Purchase of Time deposits is reported by reporting entity (such as the bank) in the Statement of Financial Transaction (SFT). Information pertaining to investment in Time deposit is reported in Form 61 where PAN is not furnished by the transacting party. PAN is populated based on aadhaar and other attributes of the person.
46.  Purchase of securities and units of mutual funds
    Information is reported by reporting entity in the Statement of Financial Transaction (SFT). Purchase of shares (including share application money). Information is reported by reporting entity in the Statement of Financial Transaction (SFT). Information is reported by reporting entity (such as mutual fund companies) in the Statement of Financial Transaction (SFT).
47.  Credit/Debit card
    Information pertaining to application for issuance of credit/debit card is reported in Form 61 where PAN is not furnished by the transacting party. PAN is populated based on aadhaar and other attributes of the person.
48.  Balance in Bank Accounts
    Details of bank account other than saving and time deposits opened during the year, as reported in Form Bank account with balance exceeding 50,000 at the closing of Financial year, as reported in Form
49.  Income distributed by business trust
    Information relating to income from units of a business trust is reported by payer in form 27Q. Information is reported on quarterly basis and is chargeable to tax at special rate.
50. Income distributed by investment fund. This information is reported by the deductor in Form 26Q.

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• How to File ITR for FY 2020-2021 or AY 2021-2022