Everything You Need to Know About the New Income Tax AIS

India is expediting tax compliance and greater access to information, and increased self-assessment opportunities. The most recent such action is the new Annual Information Statement or ais income tax service, which will be used in conjunction with the current Form 26A until the tax department says otherwise. The aggregated statement, which can be viewed via the taxpayer's PAN number and provides more categories of information, is accessible on the tax compliance portal.

The upcoming implementation of the new Annual Information Statement is in line with a significant government drive for bureaucratic reforms in India to simplify compliances, improve information accessibility, and increase data accessibility and numerous uses.

Did you know?

Under this programme, the government organisations have cut over 22,000 compliances, streamlined over 13,000, and digitised over 1,200 procedures.

What Is an Annual Information Statement?

The Annual Information Statement details 46 financial transactions (revenue, investment, and spending) from the preceding fiscal year. Taxpayers can access all of their tax-related data using the Annual Information Statement. Some of the features of AIS allow the taxpayer to review a wide range of data, including interest, dividends, securities transactions, MF transactions, remittances from overseas, etc. The data is processed to avoid duplicate data.

The taxpayer will also be able to provide input on the information provided over the internet. The taxpayer can use the feedback option if they believe the information is erroneous, belongs to another individual or year, or is duplicate. Feedback can also be provided by entering numerous pieces of data simultaneously.

Taxpayers will also have access to an AIS Utility that will allow them to view AIS and upload input when offline. The stated value and the value after feedback will be displayed independently in the AIS income tax service. If the data is changed or rejected, the source of information may be approached again for verification.

Also Read: Income Tax in India: Basics, Slabs and E-filing Process 2023

List of Financial Transactions in Annual Information Statement

A total of 46 financial transactions are detailed in the Annual Information Statement. They are as follows:

1. Salary
2. Rent received
3. Balance in account
4. Cash deposits
5. Cash withdrawals
6. Credit/debit card
7. Dividend
8. Interest from savings bank
9. Purchase of time deposits
10. Interest from deposits
11. Purchase of securities and units of mutual funds
12. Sale of securities of units and mutual fund
13. Interest from other sources
14. Cash payments
15. Receipt of accumulated balance of the provident fund (PF) from employer u/s 111
16. Receipts from a life insurance policy
17. Withdrawal of deposits from the national savings scheme
18. Interest from income tax refund
19. Purchase of foreign currency
20. Rent payments
21. Foreign travel
22. Purchase of immovable property
23. Receipts from the transfer of immovable property
24. Receipt of foreign remittance
25. Rent from plant and machinery
26. Winnings from lottery or crossword puzzle u/s 115BB
27. Winnings from horse race u/s 115BB
28. Interest from Infrastructure Debt Fund
29. Interest from a specified company by a non-resident
30. Interest on bonds and government securities
31. Income in respect of units of non-resident
32. Income and long-term capital gain from foreign currency bonds or shares of Indian companies
33. Insurance commission
34. Receipt of commission etc. on sale of lottery tickets
35. Sale of land or building
36. Off-market debit transactions
37. Off-market credit transactions
38. Business receipts
39. Business expenses
40. Miscellaneous payments
41. Purchase of vehicle
42. Income distributed by business trust
43. Income distributed by investment fund
44. Income from investment in securitisation trust
45. Sale of vehicle
46. Payment to non-resident athletes or sports associations under section 115BBA

How to Access the Annual Information Statement?

On the new Income tax e-filing portal, click on the Annual Information Statement (AIS) link under the "Services" section to view the Annual Information Statement. 

Step 1 

Firstly, open the official income tax site to access the income tax portal. Select 'Services' > 'Annual Information Statement' from the drop-down menu.

Step 2

Click on the proceed option.

Step 3

You'll be taken to the compliance portal as a result. You may see the Taxpayer Information Summary and the Annual Information Statement on the AIS main page.

Step 4

You can access the Taxpayer Information Summary or the Annual Information Statement for the relevant financial year by clicking the appropriate icons.

Step 5

Click on the download in the corresponding tiles. The TIS is available in PDF format, and AIS is available in PDF and JSON formats.

Note

The PDF file is password protected if you download it. To access, type the password as a mixture of the PAN (in capital letters) and the birth date in the instance of the taxpayer or the date of incorporation/formation in the case of a non-individual taxpayer in the format DDMMYYYY.

Feedback in Annual Information Statement

The taxpayer has the option of providing feedback online or offline. The comments can only be provided in the AIS part of the compliance website while using the online option. Let's look at how to submit comments in the AIS section.

To begin, select Annual Information Statement (AIS) from the drop-down menu. TDS/TCS data, SFT information, tax payment, demand and refund information, and others can be found in specific segments. For instance, tap on the info in the SFT information section and pick the data where you wish to send the feedback.

1. After viewing the information section, you can provide feedback by selecting the 'Optional' button.
2. It will prompt you to select the type of feedback you want.
3. The information will be updated to reflect the new figure in brackets.
4. The resulting number in the Taxpayers Information Summary will be updated using the amended value (TIS).
5. The resulting value is then used to pre-fill the taxpayer's ITR application.

Also Read: How To File ITR (Income Tax Returns) Online – Income Tax E-filing Guide For FY 2020-21

What Distinguishes AIS Service from Form 26AS?

The TDS and TCS data relevant to the assessee's PAN during the fiscal year is in Form 26AS, comparable to the tax passbook. Furthermore, when the trade exceeds the specified limit or the tax is deducted, the specifics of the indicated transaction, such as mutual fund unit buyings remittance and others, must be shown in the rectification version of Form 26AS. When tax is deducted from the interest earned on a fixed deposit, Form 26AS must be filled out. 

The AIS is a more robust solution. The transactions will be shown in the Annual Information Statement regardless of whether or not tax has been deducted. Irrespective of the fact that no tax is deducted on the interest earned on the FD ( fixed deposit), it must be shown in the AIS. In AIS, there is no requirement for a certified limit on transactions. As a result, the AIS would be prompt. Even if you invest ₹2000 in a mutual fund SIP, the AIS would be fast. The AIS will disclose all of the minor and extensive fiscal activities and report to the income tax department through different financial companies. These entities' compliance requirements were defined by legislation. As a result, the Annual Information Statement will show all your financial transactions.

Conclusion 

Many taxpayers might have submitted their tax returns because the AIS went into effect on November 1, 2021. In such a circumstance, it is suggested that taxpayers analyse the information shown in the Annual Information Statement. If any taxable or exempt income has been missing in the tax return, the same may be included immediately by filing a revised tax return. Over time, the Annual Information Statement is sure to deliver more clarity, assist in the acquisition of large portions of income and taxes, improve overall compliance, in addition to helping taxpayers in the preparation and filing of their tax returns.

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