Filing of income tax return has turned more information-based, thanks to the Income Tax Department’s move to make the filings more transparent and convenient for taxpayers. Two such important tools that have been launched for this purpose are the Annual Information Statement (AIS) and the Taxpayer Information Summary (TIS). Both provide information regarding your financial activity but for somewhat different purposes.
This blog describes what AIS and TIS are, how they are different, and why knowing both is important for submitting an accurate income tax return.
Introduction
The past few years have seen the Indian Income Tax Department gradually shifting toward increased digitization and transparency. One of the biggest steps towards this was when the Annual Information Statement (AIS) and the Taxpayer Information Summary (TIS) were introduced.
Prior to AIS and TIS, taxpayers were provided with the Form 26AS, which contained basic information such as TDS deducted, tax paid, and certain high-value transactions. But with the increasing diversity of sources of income, such as interest, dividends, investments in mutual funds, trading in shares, and foreign remittances, the previous system was not sufficient to capture the full financial picture.
To bridge this lacuna, the department launched AIS, a comprehensive picture of all income-related data gathered from various reporting entities. In addition to AIS, the TIS was launched to show this intricate data in a simplified, actionable form to taxpayers. Although they are interrelated, AIS and TIS are not identical, and it is crucial to understand the difference between them to prevent mistakes while filing ITR.
What is AIS (Annual Information Statement)?
The Annual Information Statement is an exhaustive statement of a taxpayer’s financial dealings during a financial year. It gathers information from third-party sources like banks, mutual fund houses, stock exchanges, employers, registrars, etc., and presents it in an organized form.
The AIS offers information such as Salary income, Interest income from post offices and banks, Dividend income from companies or mutual funds, Sale and purchase of mutual funds and securities, Rent received, Remittances from abroad, TDS/TCS transactions and GST turnover for businesses.
Every transaction included in AIS is accompanied by comprehensive fields such as the source, amount, and remarks (whether it corresponds to the taxpayer’s return or not). AIS is designed to deliver a 360-degree view of the taxpayer’s income and financial transactions.
You can view AIS on the Income Tax e-filing portal, and in case you notice any inconsistencies, you can provide feedback directly.
What is TIS (Taxpayer Information Summary)?
Whereas AIS shows raw, detailed transaction-level data, the Taxpayer Information Summary (TIS) is more utilitarian: a summarized version of the AIS, distilling important information into an easily readable form.
TIS shows-
- Aggregate figures for various heads of income
- Pre-filled figures that the tax department will use to auto-fill your ITR
- Processed figures after taking taxpayer feedback (if any) into account
The idea behind TIS is to enable taxpayers to see at a glance what the tax department has on record about their income and taxes paid, without getting bogged down in transactional details.
Basically, if AIS is the entire database, TIS is the executive summary assisting you in cross-checking numbers while filing your return.
Key Differences Between AIS and TIS
| Aspect | AIS (Annual Information Statement) | TIS (Taxpayer Information Summary) |
| Level of Detail | Provides detailed, transaction-wise data across all sources. | Provides summarized, category-wise totals for easy reference. |
| Purpose | Ensures transparency by showing all reported financial activities. | Assists in quick and accurate ITR filing with aggregate values. |
| Updates and Feedback | Allows taxpayers to submit feedback on incorrect or missing transactions. | Reflects corrected and finalized figures after feedback is processed. |
| User-Friendliness | It may seem complex, especially for users with many transactions. | Designed to be simple and user-friendly, showing key income heads. |
| Role in ITR Filing | Helps cross-verify every single transaction before filing. | Helps match pre-filled ITR figures directly without reviewing each transaction. |
Why It’s Important to Verify Both AIS and TIS Before Filing ITR
Most taxpayers think their Form 16 or Form 26AS is sufficient to file their tax return. But omissions of income entries such as bank interest, dividends, or redemptions of mutual funds can lead to tax notices or demands later on.
Using AIS, you can identify any unreported income, mismatches, or discrepancies. By checking TIS, you can verify that the summary figures to be considered for ITR auto-population are accurate.
Cross-verifying them before filing reduces the chances of underreporting income, paying a penalty, or receiving compliance notices.
Conclusion
AIS and TIS are robust tools aimed at simplifying the tax return process, making it easier, clearer, and hassle-free for taxpayers. Although the Annual Information Statement provides a comprehensive picture of all financial activities reported, the Taxpayer Information Summary offers a clear-cut picture that can be used directly for returns.
Knowing the difference between the two enables taxpayers to be masters of their tax compliance, prevent surprise at assessment, and file correct returns with confidence. While filing your income tax return, spending a few minutes verifying both your AIS and TIS may rescue you from larger hassles later.
References
The Income Tax Rules, 1962
The Income Tax Act of 1961 (Act No. 43 of 1961)
