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Annual Information Statement and Taxpayer Information Summary: A Detailed Guide

Annual Information Statement and Taxpayer Information Summary: A Detailed Guide

The Income Tax Department rolled out the new Annual Information Statement (AIS) from 1st November 2021. It is a detailed statement encompassing details of the financial transactions undertaken by the taxpayer during the Financial Year. The AIS is introduced with an aim to provide a comprehensive report to the taxpayer of the financial transactions as well as to promote voluntary compliance. It assists the taxpayers with the seamless and accurate filing of income tax returns, reducing the omissions and missing out on crucial information.
Information in AIS

The information in AIS is reflected in two parts:

Part-A:

It displays the general information of the taxpayer viz. PAN, name, masked aadhaar number, date of birth/formation/incorporation, and contact details of the taxpayer.

Part-B:

It reflects the information regarding the financial transactions of the taxpayer. This includes:

  • Part B1 – TDS/TCS information: All the information regarding your TDS/TCS is covered here. It includes Information code, description, source, and value.
  • Part B2 – Specified Financial Transaction (SFT): It reflects the information regarding the specified financial transactions received from the reporting entities. The SFT code, description, source, and value of the transactions are covered here.
  • Part B3 – Payment of taxes: The information regarding the taxes paid by the taxpayer is reflected here. It includes the following information:
  • Assessment Year
  • Major and Minor Head
  • Tax (A)
  • Surcharge (B)
  • Education Cess (C)
  • Other payment (D)
  • Total payment (A+B+C+D)
  • Date of deposit
  • Challan Identification Number (CIN)

•  Part B4 – Demand and Refund: It reflects the details of the demand raised and refunds initiated during a financial year disclosing the assessment year, mode, nature, amount, and date of payment.

•  Part B7 – Other information: This includes the other information in relation to Rule 114-I(2) reflecting the information code, description, source, and amount.

Taxpayer Information Summary

Taxpayer Information Summary (TIS) includes category-wise summarized information of the taxpayer. It also contains two parts:

Part-A:

It is the same as the Annual Information Statement

Part-B:

It reflects the information description, source, amount, reported value, processed value, and derived value for the information reported by various sources. This can include information regarding:

  1. Salary
  2. Rent
  3. Dividend
  4. Interest on income tax refund
  5. Interest from savings bank account
  6. Sale of securities and mutual fund units
  7. Business receipts
  8. Miscellaneous payments
  9. Purchase of securities and mutual fund units

How to view AIS and TIS?

To access your AIS and TIS, follow the below-mentioned steps:

  • Login to the income tax portal www.incometax.gov.in
  • Go to the ‘Services’ tab and then select ‘Annual Information Statement (AIS)’
  • Click on ‘Proceed’. You will be redirected to a separate compliance portal.
  • Click on the AIS. It will reflect the AIS and TIS. Select the financial year for which you want to view the information and then select AIS or TIS.
  • In case you want to download the AIS/TIS, then you can download the same. Both AIS and TIS are password-protected documents. The password is your PAN in upper case and date of birth/formation/incorporation in ‘DDMMYYYY’ format.

How to Correct AIS?

If the information as reflected in your AIS turns out to be incorrect, then the income tax portal provides a facility to give online feedback for the same. Below are the steps through which you can give feedback for the incorrect information in AIS:

Step-1: Login to the income tax portal

Step-2: Go to the ‘Services’ tab and select ‘Annual Information Statement (AIS)’

Step-3: Click on the AIS. From the AIS and TIS reflected in your portal, open AIS. 

Step-4: Click on the information which is not correct. The information tab will expand. Click on the ‘Optional’ button beneath the Feedback column.

Step-5: You will be asked to choose the feedback type. Normally, 7 options will be available to you i.e.,

a)    Information is correct
b)    Transfer not in the nature of the sale
c)    Income is not taxable
d)    Information is not fully correct
e)    Information relates to other PAN/Year
f)    Information is duplicate/included in other information
g)    Information is denied

Choose the option applicable to you. You might be asked to furnish some additional information based on the option selected. 

Step-6: Submit the feedback. Based on the feedback, Income Tax Department will correct the relevant information in the AIS.

Bottom Line

AIS and TIS have increased the transparency and provided all the necessary information regarding the financial transactions that the assessee carries out during the Financial Year. This helps in reducing the error and omission while filing the tax returns and ensures adequate disclosure of information to the tax department.

In case of any assistance, feel free to contact the ASC Group.

 

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