Annual Information Statement
Annual Information Statement (AIS) is a comprehensive document that provides a detailed overview of your financial transactions for a specific fiscal year. This statement is vital for taxpayers, containing all the essential information needed to file accurate tax returns. Kanakkupillai brings you this detailed guide to understanding AIS, its objectives, the types of information it displays, how to access it, and its significance in the context of income tax filing.
What is the Annual Information Statement (AIS)?
AIS is a document that consolidates all your financial transactions within a given fiscal year, and it’s made available by the income tax department on their e-filing website. The AIS includes information related to various financial transactions, such as income, investments, expenses, and more. Kanakkupillai is here to break down the objectives, types of information, features, and benefits of AIS.
Objectives of AIS:
- Display Exact Information to Taxpayers and Allow Online Feedback: AIS is designed to provide taxpayers with accurate and complete information about their financial transactions. Moreover, it enables them to provide online feedback if they find any discrepancies or errors.
- Encourage Voluntary Compliance and Facilitate Return Prefilling: AIS aims to promote voluntary tax compliance by simplifying the process of filing income tax returns. It also facilitates the prefilling of tax returns, making it easier for taxpayers to meet their tax obligations.
- Discourage Noncompliance: By providing a comprehensive overview of taxpayers’ financial transactions, AIS acts as a deterrent to non-compliance, discouraging individuals from evading taxes.
Types of Information in AIS:
AIS encompasses a wide range of financial information, including:
- TDS and TCS Information: This section details Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) transactions, including codes, values, and descriptions.
- Specified Financial Transactions (SFT): SFT information includes details from reporting entities, such as codes, values, and descriptions.
- Tax Payments: Information about tax payments made by the taxpayer, including self-assessment tax and advance tax.
- Refund and Demand: AIS details initial refunds and demands raised during the fiscal year.
- Other Information: This category covers additional data like interest on refunds, purchase of foreign currency, Annexure-II salary, and more.
Features of AIS:
Kanakkupillai helps you understand the features of AIS, which include:
- Comprehensive Information: AIS provides detailed information about various financial transactions, including interest, dividends, mutual fund transactions, securities transactions, and more.
- Taxpayer Information Summary (TIS): TIS simplifies the filing of Income Tax Returns (ITR) by offering a summarized data view.
- Download Options: Taxpayers can download their AIS data in different file formats, such as PDF, JSON, and CSV, allowing them to organize and review their financial data before filing their ITR.
- Online Feedback: Taxpayers can provide online feedback on the information presented in AIS, facilitating communication and addressing concerns or discrepancies.
- AIS Utility: AIS Utility allows taxpayers to download their data and provide offline feedback, making it accessible offline and enabling feedback submission through appropriate channels.
How to Open Annual Information Statement PDF?
The AIS PDF is password-protected, and you’ll need a specific password to access it. The password format is the PAN number of the taxpayer in lowercase letters followed by the date of birth in DDMMYYYY format. For instance, if your PAN number is ABCDE1234F, and your date of birth is 1st January 1980, the password would be abcde1234f01011980.
Kanakkupillai advises you to note that the AIS PDF password is case-sensitive, so any deviation from the format will result in an error when trying to open the PDF.
The Significance of AIS Passwords:
AIS passwords offer enhanced security for financial data and mitigate identity theft. They provide customized access control, maintain confidentiality, and ensure the integrity of financial data. Kanakkupillai recommends the use of strong and unique passwords and regular updates to enhance security.
Importance of AIS Passwords
- Enhanced Financial Data Security: Annual Information Statements house valuable financial data, making them an attractive target for cybercriminals. An AIS password acts as a protective barrier, thwarting unauthorized access to this sensitive information.
- Mitigation of Identity Theft: Given the increasing prevalence of identity theft, an AIS password provides an additional layer of defence against malicious actors seeking to impersonate individuals or organizations to gain unauthorized access.
Advantages of an AIS Password
- Tailored Access Control: An Annual Information Statement password empowers users to manage access to their financial information. This personalized access control ensures that only authorized individuals or entities can view the statement’s content.
- Preservation of Confidentiality: AIS passwords play a significant role in upholding the confidentiality of financial data. This confidentiality is of paramount importance for maintaining trust and complying with regulatory standards.
Different Information Shown in Annual Information Statement:
AIS is divided into two parts:
Part A – General Information: This section displays general information like:
- Full Name
- PAN (Permanent Account Number)
- Redacted Aadhaar Number
- Contact Information of the Taxpayer
Part B – Detailed Information: This section includes various financial details, such as
- Information on TDS/TCS (Tax Deducted at Source/Tax Collected at Source)
- Data related to Specified Financial Transactions (SFT)
- Details on Tax Payments
- Information concerning Demands and Refunds
- Additional data, including interest on refunds, foreign remittance, foreign currency purchases, and more.
How to Check Your AIS?
- Visit the income tax e-filing portal and log in to your account.
- Click on the ‘Services’ option in the top panel, then select ‘Annual Information Statement.’
- Click ‘Proceed’ on the AIS homepage.
- Select the relevant financial year you want to review and download the information in PDF or JSON format.
Procedure to Download Annual Information Statement (AIS):
- To download AIS, visit the Income Tax e-filing portal:
- Login and navigate to the ‘Services’ tab.
- Choose ‘AIS’ from the dropdown menu.
- Select the download option, choose the format (PDF), and enter the password.
- The AIS will be accessible after entering the correct password.
Benefits of AIS:
- Streamlined Financial Data: AIS compiles all of an individual’s financial transactions within a year, simplifying the process of monitoring their finances and ensuring accurate tax return filings.
- Reduced Tax Disputes: AIS minimizes the likelihood of disputes between taxpayers and the Income Tax Department by presenting a comprehensive overview of the taxpayer’s financial status.
- Simplified Tax Compliance: AIS simplifies the tax compliance procedure for taxpayers, eliminating the need to maintain multiple records of financial transactions throughout the year.
- Improved Transparency: AIS enhances transparency within the tax system, affording taxpayers a clearer understanding of their tax obligations and available tax credits.
What to Do if There is an Error in AIS or Form 26AS:
If you find an error in your AIS or Form 26AS, Kanakkupillai suggests the following steps:
- Contact the deductor to rectify the error and issue a corrected certificate.
- If the error persists, file a revised income tax return within the specified time limit.
- If the issue remains unresolved, raise a grievance with the Income Tax Department.
- As a last resort, approach the Income Tax Ombudsman for resolution.
Difference Between AIS and Form 26AS:
Form 26AS primarily includes information on property purchases, high-value investments, and TDS/TCS transactions, while AIS is more comprehensive, encompassing various financial transactions. AIS provides aggregated and individual transaction data, while Form 26AS focuses on tax credits.
How to Submit Feedback in AIS:
- Access the AIS Section: Log in to the designated portal or platform for the Annual Information Statement (AIS).
- Navigate to the Relevant Data Category: Within the AIS section, locate the specific data category or transaction for which you want to provide feedback. This may include TDS/TCS information, SFT information, tax payments, demand and refund details, or other financial data.
- Select the Data for Feedback: Click on the particular data entry or transaction that requires feedback. This will likely involve clicking on the relevant data point or category.
- Initiate Feedback: Once you have selected the data, you will typically find an option to provide feedback or comments. Click on this option to begin the feedback process.
- Follow the Prompts: The system will guide you through the feedback submission process. You may be asked to specify the type of feedback you are providing, such as corrections, updates, or clarifications.
- Submit the Feedback: Enter the necessary details and comments related to the data, and ensure that your feedback is clear and accurate.
- Confirmation: After submitting the feedback, you may receive a confirmation message or acknowledgement of your submission. This confirms that your feedback has been recorded.
- Updated Value: The updated value or corrected information, if applicable, will be considered for your tax return filing. Any necessary adjustments will be made based on the feedback provided.
Important Announcement for Taxpayers:
Kanakkupillai emphasizes the importance of regularly monitoring AIS, cross-checking the information, and ensuring complete and accurate data submission in your Income Tax Returns.
Which Form Should a Taxpayer Refer to at the Time of Filing ITR:
In case of a discrepancy between AIS and Form 26AS, taxpayers should rely on the data in Form 26AS for return filing. If additional information is discovered after filing, taxpayers can update
In conclusion, Kanakkupillai provides a comprehensive guide to understanding the Annual Information Statement (AIS) and offers valuable assistance in navigating its objectives, features, and benefits. With a strong emphasis on accurate tax filing and enhanced financial security, Kanakkupillai ensures that taxpayers can easily access and make the most of the AIS while addressing any potential errors or discrepancies.