Annual Information Statement (AIS) & Tax Information Summary (TIS)

• Posted By Amritesh
• On December 20th, 2021
• Comments: 96 responses

Income Tax (IT) Department has recently launched the Annual Information Statement (AIS), a comprehensive financial statement which records all the financial transaction of the individuals undertaken in a particular financial year. AIS will be in addition to the Form 26AS available on the Traces portal. Annual Information Statement (AIS) was launched on 1^st November, 2021 and is expected to replace the Form 26AS in the future, once the AIS is in full operation. AIS includes complete details related to income sources such as Bank Interest, Dividend Income, Securities Transaction, Deposits, Bonds, Mutual Funds, etc. Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) information along with other tax information will also be available in the statement.

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AIS also allows the taxpayers to share their feedback via the online or the offline mode. Annual Financial statement primarily records all the transaction of the tax payer via the PAN and same is reflected in the statement. The new statement is introduced to streamline the process and improve compliance in income tax return filing. Income Tax Payers before filing their income tax returns may download the AIS from the new income tax e-filing portal in order to ascertain the tax liability for the respective Financial Year. However, do note that AIS only reflects information available with the Income Tax Department. Therefore, Individuals need to check the AIS in detail and report the eligible transactions/income while filing their returns.

Taxpayer Information Summary (TIS)

In addition to AIS, income tax department has also introduced Taxpayer Information Summary (TIS) for the convenience of the tax payers. TIS reflects the aggregate value which may be used for tax filing. TIS aims to ease the pain of income tax payers while filing their respective income tax returns. Individuals may consider the value updated on TIS while filing their returns, as suggested by the Central Board of Direct Taxes (CBDT) in the press release. In case the taxpayer submits any form of feedback on the AIS platform, the relevant information will be auto updated TIS.

Individuals may download both the TIS and AIS, after logging into their account on the e-filing portal.

Steps to Download the AIS & TIS

Step 1:

Log onto https://www.incometax.gov.in/iec/foportal

Click Login/Register [Right Side Corner, (If not registered, PAN needs to be validated to proceed with creation of Account, keep the Aadhaar ID & Registered Mobile number ready to complete the process)]

Step 2:

Use your Login ID (Aadhaar/PAN and password) to log into your account

Step 3:

In the Menu Bar > Select ‘Services’ > Scroll down to Select ‘Annual Information Statement’

Step 4:

Click on ‘AIS’ > AIS & TIS reports will be available download. An option to upload feedback is also available below the Annual Information Statement (AIS).

Step 5:

User is required to enter the PAN and Date of Birth (DOB) combination to view the document.

Taxpayers Perspective on Annual Information Statement (AIS)

The new AIS and TIS is beneficial for the taxpayers as all the PAN related transactions are automatically recorded on the platform. Introduction of AIS & TIS will aid individuals in filing their respective returns. The details of financial transactions will be readily available with the taxpayers at the time of filing their returns. Individuals need to understand that aggregate value may not always provide the complete picture as the platform only records PAN-based transactions. Moreover, income from other sources such as annuity plans or income in any other form which does not attract TDS may not be reflect in the system. Even in case of investment in securities (stock market), the value recorded under TIS may not be the accurate representation of the tax implication. So, Individuals need to be carefully study and evaluate the statement and share their feedback on the AIS platform, if required.

Overall, AIS and TIS is a good move which will promote compliant friendly system. It will help in curbing the tax evasive practices while making the system transparent and simple.

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