Annual Information Statement (AIS)

Tax compliance and financial transparency are essential for every taxpayer. To simplify this process, the Income Tax Department introduced the Annual Information Statement (AIS)—a comprehensive document that provides a detailed summary of your financial transactions for a financial year. Whether you are a salaried employee, a business owner, or an investor, understanding AIS can help you manage your finances better and ensure accurate tax filings.

In this article, we will explore the AIS full form, meaning, and process of How to check AIS password format and feedback, along with its features, objectives, and benefits.

What is Annual Information Statement (AIS)?

The Annual Information Summary (AIS) is a comprehensive overview of financial data related to a taxpayer, compiled from various sources that have reported transactions involving that individual. These transactions may be in the form of cash, kind, or other benefits. While the AIS offers valuable insights to assist with filing Income Tax Returns (ITRs), it should not be treated as a definitive record. Taxpayers must still report their income independently, even if it is missing from the AIS.

The AIS acts as a consolidated financial snapshot and helps taxpayers cross-verify their financial details. However, it may not always present a complete or entirely accurate picture of one’s income or transactions. Thus, taxpayers are still legally required to disclose all income sources, even those not shown in the AIS.

If there are any inaccuracies in the AIS, such as incorrect transaction values or missing entries, the taxpayer can submit feedback requesting correction. The AIS displays both the originally reported values (as provided by banks or reporting entities) and the updated values after feedback. These details are categorised across several sections, including Tax Deducted at Source (TDS), Statement of Financial Transactions (SFT), and other data points.

Objectives of Annual Information Statement (AIS)

The primary objectives of AIS include:

• Transparency: AIS ensures that taxpayers have a clear view of the financial data available with the Income Tax Department.
• Simplified Tax Filing: By consolidating financial data, AIS makes it easier for taxpayers to file their ITRs accurately.
• Error Reduction: AIS helps identify and rectify discrepancies between the taxpayer’s records and the department’s data, reducing anomalies in tax reporting.

Salient features of AIS

The AIS offers several features that make it an essential tool for taxpayers:

• Comprehensive Data Visibility: AIS provides a detailed view of income, expenses, investments, and transactions.
• Real-Time Updates: It is updated periodically to ensure accuracy and relevance.
• Easy Accessibility: Taxpayers can access AIS through the Income Tax Department’s e-filing portal.
• Comparison with TDS/TCS Data: AIS allows users to verify their tax deducted at source (TDS) and tax collected at source (TCS) details.

These features not only help taxpayers organise their finances but also make them more eligible for financial products such as Bajaj Finserv Home Loans. With organised financial records, you can streamline your loan application process and enjoy benefits like competitive interest rates and minimal documentation.

Taxpayer Information Summary (TIS)

The Taxpayer Information Summary (TIS) is a simplified version of the AIS. It provides a summarised view of the financial data available in AIS, making it easier to understand and use for filing your ITR.

For example, if you earned Rs. 10 lakh in salary and Rs. 2 lakh from investments during the financial year, the TIS will display these figures in a concise format. This summary helps ensure that your ITR matches the data available with the Income Tax Department.

How to check your Annual Information Statement (AIS)

To check your AIS on the Income Tax Department’s portal, follow these five simple steps:

1. Log in to the official e-filing portal at www.incometax.gov.in using your credentials, then click on the ‘AIS’ section from the menu.

2. Click the ‘Proceed’ button when prompted.

3. You’ll be redirected to the compliance portal, where you’ll find the Taxpayer Information Summary (TIS) and the Annual Information Statement (AIS) sections on the homepage.

4. Choose the relevant financial year, and select either AIS or TIS by clicking on the respective tiles.

5. Download your reports if needed – TIS can be downloaded as a PDF, while AIS is available in both PDF and JSON formats using the download icons.

What is AIS PDF password: How to open AIS PDF?

When you download the AIS in PDF format, it is password-protected for security reasons. The standard password format is a combination of your PAN (in uppercase) and your date of birth in the format DDMMYYYY.

For instance, if your PAN is ABCDE1234F and your date of birth is 15th August 1990, your password will be ABCDE1234F15081990.

What are the different types of information shown in AIS?

The AIS is divided into two main sections: Part A and Part B, each serving a distinct purpose.

Part A – General information

This section captures the taxpayer’s basic identification details such as PAN, partially masked Aadhaar number, name, date of birth or incorporation, and registered contact information.

Part B – Financial transaction details

Here’s what is covered:

• TDS/TCS details: Includes codes, descriptions, and reported values of tax deducted or collected at source.

• SFT transactions: Displays information received from various reporting entities under the Statement of Financial Transactions (SFT), including codes, descriptions, and values.

• Payment of taxes: Covers advance tax and self-assessment tax payments made by the taxpayer.

• Demand and refunds: Shows any demand raised or refund processed in the financial year, including assessment year and amounts.

• Other information: May include salary details (Annexure II), interest on tax refunds, foreign remittances, or foreign currency purchases.

For example, if you’ve earned interest on your savings account, the AIS will show the account number, status, source code, and the total interest received. Similarly, transactions such as security sales will include sale dates, asset types, quantity sold, and transaction count.

CBDT has notified 57 types of income and expenses that will be available in AIS

The Central Board of Direct Taxes (CBDT) has outlined 57 categories of income and expenses that are tracked in AIS.

This comprehensive tracking ensures that all financial activities are accounted for, promoting transparency and compliance.

Difference between AIS and Form 26AS

While both AIS and Form 26AS provide financial data, they serve different purposes:

Form 26AS offers a summary of certain financial activities—mainly property transactions, TDS/TCS deductions, and high-value investments. However, it has limited scope compared to the Annual Information Summary (AIS).

AIS, on the other hand, is far more detailed and gives a broader view of the taxpayer’s financial footprint. It includes interest from savings accounts, deposits, property transactions, equity sales, foreign remittances, and more. Each entry is available both as a summary and as detailed transaction-level data.

To illustrate: If a taxpayer earns Rs. 1,700 as savings interest and Rs. 42,000 as fixed deposit interest from the same bank, Form 26AS may only show the Rs. 42,000 if TDS is applicable. However, AIS will reflect both figures, along with the bank’s name, account type, and other relevant identifiers.

AIS goes beyond just TDS and SFT data – it also captures tax payments, demands, refunds, and additional transactions such as rental income, salaries, and dividends. However, if you’re looking to verify your GST turnover, only Form 26AS includes this detail; AIS does not provide GST-related information.

How to submit feedback in AIS? How to rectify errors in AIS?

Taxpayers can raise corrections or submit feedback directly through the AIS portal online. Here’s how to do it:

• Go to the AIS section of the income tax portal, as explained in the steps above.

• Locate the transaction you wish to dispute – this could be under TDS/TCS, SFT, payment of taxes, refunds, or miscellaneous information.

• Click on the information to view the transaction details. A feedback button labelled ‘Optional’ will be available.

• Select the feedback type from the available options, such as “Information is incorrect” or “Information relates to another PAN”.

• Submit your feedback. The AIS will then display the modified figure in brackets.

• The revised figure will update the derived value shown in the Taxpayer Information Summary (TIS), which may be used to pre-fill your ITR.

This process ensures that inaccuracies are identified and corrected efficiently, giving the taxpayer better control over their financial data.

AIS correction status update

From 13 May 2024 onwards, a new feature has been introduced to help taxpayers track the status of their AIS feedback or corrections. Once you have submitted feedback, the system displays whether your request has been accepted (fully or partially) or rejected by the reporting entity responsible for providing the information.

Here are the key status updates available:

• Feedback sent for confirmation: Indicates whether your correction request has been forwarded to the relevant source.

• Date of feedback submission: Shows when the feedback was shared with the reporting source.

• Response date from source: Displays the date on which the reporting entity responded to your request.

• Source’s response: Reveals whether the source accepted the correction, made a partial change, or rejected it.

This feature enhances transparency by letting taxpayers see how their submitted corrections are being handled. The updated status is visible directly within the AIS, helping taxpayers stay informed without needing to make repeated queries or follow-ups.

It’s a user-friendly initiative by the Income Tax Department aimed at improving the compliance experience and ensuring smoother tax filing procedures.

What to do if there is an error in AIS or Form 26AS?

In case of errors in AIS or Form 26AS, follow these steps:

1. Cross-verify the data with your financial records.

2. Submit feedback for AIS errors as explained above.

3. For Form 26AS errors, contact the deductor (e.g., your employer or bank) to rectify the issue.

Which form should a taxpayer refer to at the time of filing of ITR?

Taxpayers should refer to both AIS and Form 26AS while filing their ITR. However, AIS provides a more comprehensive view of financial data and is recommended for detailed verification.

Conclusion

The Annual Information Statement (AIS) is an invaluable tool for taxpayers, ensuring financial transparency and simplifying tax compliance. By regularly reviewing your AIS, you can stay on top of your financial activities, avoid errors, and file accurate ITRs.

Additionally, maintaining organised financial records through AIS can help you qualify for financial products like Bajaj Finserv Home Loans. With competitive interest rates and minimal documentation, Bajaj Finserv makes homeownership a hassle-free experience. Check your eligibility now by entering your mobile number and OTP for verification.

Take charge of your finances today—review your AIS and make informed decisions for a secure financial future.

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