Filing income tax returns (ITR) in India has now become a less cumbersome activity due to the application of technology. Out of the facilitators, one of the most useful tools has been the AIS, which means the Annual Information Statement. The AIS is an essential form generated by the Income Tax Department of India whereby all the records related to an individual’s business dealings are summarized with respect to an average financial year. This information is very important for taxpayers so as to enable them to file perfect ITR that will have no disparity with the information on the record of the tax authorities.
However, there is one thing that seems to trouble many of them when filing their returns using the AIS: the AIS password. This is easy since the password to open the AIS is another important piece of information needed by people seeking to access their AIS with a view to filing their ITR. In this blog, we’ll try to answer the questions “What is the AIS, why might I need it, where can I find it, and what is the AIS password for”?
What is AIS?
The AIS is an online document that conforms to all the financial transactions of a taxpayer conducted to the Income Tax Department in a single form and on an annual basis. These include information about income, TDS, TCS, advance tax, and so on, including mutual fund investments, property sale and purchase, capital gain and others. The AIS is essentially the newer version of the earlier Form 26 AS and gives a more elaborate analysis of the financial transactions of a taxpayer.
The AIS assist the taxpayers to cross-check the data submitted by different entities (employers, banks, financial institutions, etc.) to the Income Tax Department. It is available on the Income Tax Department’s e-filing portal of taxpayers who are registered.
Why is the AIS Important for Filing ITR?
The AIS plays a crucial role in filing Income Tax Returns (ITR) for several reasons:
- Accuracy in Filing ITR: With the help of AIS, taxpayers can check the ITR submitted by them with the records maintained in the Income Tax Department. It lowers the risk of conflict in the figures used and minimises the chances of making incorrect measurements.
- Cross-verification: The AIS assists to recognize other incomes and taxes that are presumably missed or inaccurately narrated. This may contain information concerning the TDS, advance tax and other types of income.
- Preventing Tax Evasion: The AIS simplifies the possibility for an individual to hide income, as all the financial information is compiled in one database. This is beneficial for the government as it aids in the suppression of tax evasion and compliance.
- Easy to Use: By implementing the AIS, taxpayers are no longer needed to follow various number of individual tax documents. All the information is available conveniently in a single online package.
How to Access the AIS?
It is generally easy to get to the AIS. Here’s how you can do it:
Step 1: Check out the Income Tax e-Filing Portal
To access the AIS, you first need to visit the official Income Tax Department’s e-filing portal (https://www.incometax.gov.in/). Make sure that you are registered on the portal, and to register, use your PAN number.
Step 2: Log into Your Account
On visiting the site, for online registration you have to enter the PAN (Permanent Account Number) and password. It is rather strange though, for anyone to be able to get to the homepage one is required to sign in and if one has no account, then is required to make one.
Step 3: Navigate to the AIS Section
The screen that appears after login, has a tab called Navigation Menus, at its bottom there is a link to AIS which was before under the Services tab or Tax Information.
Step 4: Download Your AIS
After you find the AIS section, you will be able to download AIS in PDF format. This document will be carrying your income details TDS/TCS and the tax payments and any other financial transaction.
The AIS Password – Why is it Needed?
To open and view the AIS, a password is required. This password is there to guard the document and it means that no unauthorized person can open it. Just to enhance the security features inherent in the AIS file, the document is likely to be coded and password protection is needed to decode the document.
What is the AIS Password?
Usually, the password needed to access the AIS is based on your PAN (Permanent Account Number). The format for the password is as follows:
- Password Format: This will take the format of your PAN number in capital letters, and at the end of the password, you input your birth year.
For example, if your PAN is ABCDE1234F and your year of birth is 1985, the password to open the AIS would be:
ABCDE1234F1985
What is also worth mentioning is that the password is case-sensitive and, therefore, recommend that the PAN be entered in uppercase as mentioned.
AIS Password Needed: Why?
Password is an extra protective method to safeguard your personal financial data. As the AIS contains your income, taxes paid and other important financially sensitive details it should be accessible only to you or the appointed person.
In this case, the Income Tax Department ensures that no one else will open the document by requesting the correct password.
Procedures for starting AIS with the Password
Once you have obtained the password, here are the steps to open the AIS:
- The AIS can be downloaded from the e-filing portal, as has been discussed earlier in this section.
- Locate the PDF File: Following the download, you will see that the AIS is saved in PDF format. Double-click to open it.
- Enter the Password: You will be asked to type the required password in order to read the file. Here, to unlock the entries, enter the password and that is your PAN in uppercase appended with your year of birth.
- View the AIS: Once you type the correct password you can view your Annual Information Statement which contain the information about your income, TDS and so on.
Common Issues with AIS Password
Thus, though the procedure of obtaining the AIS is quite unproblematic, there might be some problems concerning the password. Here are some common problems and how to solve them:
Unfortunately, even in the case when you forgot the password, there are no direct option to change it, as the password is derived from PAN and birth year of the user. Make sure the PAN you entered is in uppercase only. Make sure you have entered the right birth year the second time. Payers sometimes face issues related to the password. Here are some common problems and how to solve them:
- Forgot the Password
If you forget the password, there is no direct way to reset it, as the password is based on your PAN and birth year. However, you can double-check the following:
- Ensure that you are entering the PAN in uppercase.
- Double-check the birth year to confirm it is entered correctly.
If you are still experiencing problems, it is better to turn to the helpdesk of the Income Tax Department.
- Incorrect Password Format
Once more, my password is in the format PAN in uppercase + then year of birth. If you do it in lowercase or in any other form, you won’t be able to open the document. But still, remember to follow the correct format on every occasion.
- File Corruption or Errors
Sometimes, problems may arise when trying to download as well as when opening the AIS. Make certain you have a strong connection on the Internet while going through the download process.
- Unable to Access AIS
Sometimes there might be problems with the Income Tax portal for some reason. This may cause the portal to be unavailable temporarily, it may be under maintenance, server issues, or updates are being made to the portal. This is usually caused by network problems, so if it happens do not attempt to recharge again until after several hours. You can also continue to seek help from the helpdesk.
Conclusion
Annual information statement has therefore been projected as an important tool available for the taxpayer to enable them file their income tax returns free from error and in compliance with the information within the reach of the income tax department. Ideally, through the AIS, several other related financial operations or payments will be incorporated under one convenient framework, it is less likely for errors to occur in the filing of taxes.
To try to prevent other people from accessing your AIS password will be generated from your PAN and birth year. The other downside of the feature is that it is difficult to recall the right password format when the attempt is being made to open the AIS.
Knowledge on how to retrieve AIS and how to utilise it when filing your ITR will go a long way in ensuring less chances of making errors in your tax returns. If you have the right information and tools you can go through the tax filing process more effectively and with increased self-assurance.
If you face any problems or have any queries while generating your AIS, you should immediately report to the Income Tax Department help desk.
