Income Tax Day: How To Check Annual Information Statement (AIS) Before Tax Filing?

The day is celebrated on 24 July as "Income Tax Day" every year by the Ministry of Finance to educate individuals about the importance of tax. On the occasion of "Income Tax Day," taxpayers should be informed of how to verify their Annual Information Statement (AIS) before filling their IT because the deadline for filing an income tax return (ITR) is approaching.

The information provided in Form 26AS is summarised in detail in the Annual Information Statement (AIS). Furthermore, AIS includes information related to interest earned from savings accounts, interest on deposits, dividends, rent paid, buying and selling of securities/immovable properties, foreign remittances, GST turnover etc. Annual Information Statement (AIS) files are available in PDF, JSON, and CSV formats for download. It is important to verify the right feedback choice before filling the ITE since all information shown in the AIS utility allows the taxpayer the opportunity to confirm the financial transactions mentioned on AIS.

S. Ravi, Promoter & Managing Partner, Ravi Rajan & Co. LLP

As Income Tax Day approaches, taxpayers are gearing up to file their annual returns. Before commencing the tax filing process, it is crucial to check the Annual Information Statement (AIS) to ensure accurate reporting of income and prevent potential discrepancies that may lead to legal issues. The AIS, also known as Form 26AS, is a comprehensive document that provides a consolidated view of all taxable transactions associated with an individual's Permanent Account Number (PAN).

To access the AIS, taxpayers can follow a few simple steps. First, they need to log in to the official website of the Income Tax Department of their respective country. Next, click on the "My Account" tab and select "View Form 26AS (Tax Credit)." A new window will open, and users will be redirected to the TRACES (TDS Reconciliation Analysis and Correction Enabling System) website, where they should select the relevant assessment year and proceed.

The AIS provides detailed information on various sources of income, including salary, interest earned from banks and financial institutions, dividends, and capital gains. It also displays tax deductions, such as TDS (Tax Deducted at Source) and advance tax payments, ensuring taxpayers cross-check their data for accuracy. Any discrepancies between the AIS and the taxpayer's records should be promptly addressed to avoid potential penalties from tax authorities.

Checking the Annual Information Statement before filing income tax returns is a prudent step to ensure compliance with tax regulations and prevent any last-minute surprises. By meticulously verifying the AIS, taxpayers can confidently file their returns, contributing to a smoother and hassle-free tax filing experience.

Suresh Surana, Founder, RSM India

Annual Information Statement (AIS) provides a comprehensive view of information in addition to that provided in Form 26AS. Every taxpayer should check the following indicative details in their AIS:

1. Personal Information or general information of the taxpayer such as his/her PAN, Masked Aadhar Number, Name of the Taxpayer, Date of Birth, mobile number, e-mail ID and residential address.

2. Details pertaining to high-value investments, TDS/TCS on transactions carried out during the financial year, savings account interest, dividend and rent received, purchase and sale transactions of securities/immovable properties, foreign remittances, interest on deposits etc.

3. TDS/ TCS information needs to be considered by the taxpayer such as gross amount on which the TDS/ TCS at applicable rates has been deducted or collected, amount of TDS or TCS, source of such income, etc.

4. Details of demand raised or Income tax refund amount initiated interest on such refund.

5. Information related to payment of tax such as self assessment tax and advance tax paid during the year.

6. In case of the above information differs from the information of financial transactions maintained by the taxpayer, the taxpayer would be required to submit online feedback with regards to such discrepancy.

Avinash Shekhar, TaxNodes

Before proceeding with the tax filing process in India, it is essential to verify and validate the information provided in the Annual Information Statement (AIS). The AIS is a crucial document that contains comprehensive details of various financial transactions undertaken by a taxpayer throughout the financial year. By diligently reviewing the AIS, taxpayers can ensure the accuracy and completeness of their income and tax-related information. Below are the step-by-step instructions on how to check and analyze the AIS before initiating the tax filing process:

Obtain Form 26AS: Form 26AS is a consolidated tax statement that displays all the details of tax credits and payments available with the Income Tax Department against a taxpayer's PAN (Permanent Account Number). To access Form 26AS, taxpayers can visit the official website of the Income Tax Department and log in to their account. Alternatively, they can access it through the net banking facility of authorized banks. Upon logging in, navigate to the 'View Form 26AS' section.

Choose the Appropriate Assessment Year: Select the relevant assessment year for which you want to check the AIS. The assessment year is the year following the financial year for which taxes are being filed.

Validate Personal Information: Cross-verify personal information, such as name, PAN, and contact details, displayed on the Form 26AS. Ensure that all details match the information provided in the tax return.

Verify Tax Deducted at Source (TDS) Details: TDS is the tax deducted by the payer while making certain payments like salary, interest, rent, etc. Check whether the TDS amounts mentioned in Form 26AS align with the TDS certificates received from employers or deductors such as Form 16 or 16A for Non-salary TDS. Discrepancies, if any, should be addressed with the concerned parties to ensure accurate tax reporting and compliance.

Scrutinize Income and Financial Transactions: The AIS provides a comprehensive overview of various sources of income, including salary, interest income, dividends, capital gains, etc. Verify that all sources of income are accurately recorded and match the income declared in your tax return.

Cross-check Tax Payments and Advance Taxes: Ensure that all the taxes paid during the financial year through advance tax, self-assessment tax, or any other mode are correctly reflected in the AIS. Any missing tax payments should be rectified before filing the tax return.

Review High-Value Transactions: Form 26AS includes information on significant financial transactions that are subject to reporting under the Annual Information Return (AIR) system. These transactions can include property purchases, large bank deposits, mutual fund investments, etc. Make sure these transactions are correctly reported, and if required, provide necessary explanations for any discrepancies.

Rectify Errors and Seek Clarifications: If you identify any discrepancies or errors in the AIS, take necessary steps to rectify them. In case of any doubts or clarifications required, get in touch with the concerned authorities or a tax professional.

Preserve Form 26AS: Once you have thoroughly reviewed and verified the AIS, ensure you save a copy of Form 26AS for future reference and as supporting documentation during the tax filing process. By diligently examining the Annual Information Statement (AIS) before filing your tax return, you can ensure the accuracy and completeness of your tax-related information, thereby minimizing the chances of any discrepancies or potential issues with the tax authorities.

Raghuram Trikutam, Descrypt

Annual Information Statement, AIS for short, is a comprehensive document that captures all the information around financial transactions over a tax year. It is an expanded version of Form-26AS which has details of tax deducted at source (TDS). AIS is meant to be easy to understand and to be reconciled with your bank statements and other financial entities you deal with. For example, if you have done equity transactions then you could reconcile the relevant section of AIS with the information provided by your brokerage account. The IT department also has facilitated data correction should you spot any discrepancies.
AIS has two broad sections.

1. Section-A: General information such as your PAN card, name, bank account details.

2. Section-B: This has all the financial information categorized under various subsections.

The aim of AIS is for taxpayers to fully understand all their tax payments and encourage them to voluntarily disclose their earnings. To access your Annual Information Statement (AIS), you need to follow these steps:

Step-1: Login to new Income Tax Portal

Step-2: Navigate to "Annual Information Statement (AIS)" Under "Services" tab

Step-3: On AIS portal select "AIS" tab and then select "Annual Information Statement (AIS)" subsection.

Step-4: Once you click the download icon you will get a pop-up asking for the format. Select PDF as it is human readable. The file is password protected. The password is your PAN number, in all lowercase letters, followed by your date of birth in ddmmyyyy format. For instance, if your PAN is HJBXM6839B and date of birth is 16 May 1985 then the password is "hjbxm6839b16051985".

Sathvik Vishwanath, Co-Founder & CEO, Unocoin

In India, Income Tax Day usually falls on July 31, when most individuals file their tax returns. Before filing a tax return, individuals must check their annual information statement, known as Form 16, provided by their employers. Let us take the example of Ravi, a salaried employee to understand the process.

Ravi works for a software company and by the end of May his employer will provide him with Form 16. The form contains details of his salary, taxes deducted and other relevant information about his income for the previous financial year.

Ravi has two options to check his Form 16:

Using his PAN number and password, he can login to the government portal for e-filing of income tax. You can download your Form 16 for the assessment year from the portal.

Alternatively, Ravi can contact his company's HR or Finance department to obtain a physical copy of Form 16 if the electronic version is not available.

Once Ravi has his Form 16, he should carefully check all the details to ensure they are accurate. For example, it checks that income, deductions and tax calculations are consistent with payslips and other relevant documents.

If Ravi discovers any discrepancies or errors, he must notify his employer immediately so that the issues can be corrected before he files his tax return. This ensures that his tax return is accurate and compliant with Indian tax laws.

To avoid any penalties, Ravi should file his tax return by July 31. However, if he faces difficulties and cannot submit the application in time, he can apply for an extension under certain circumstances.

In conclusion, checking Form 16 is crucial for individuals like Ravi before filing their tax returns in India as it provides a comprehensive overview of their income and tax deductions, helping them ensure accurate tax reporting and tax compliance.

Anita Basrur - Partner, Direct Tax - Sudit K Parekh & Co. LLP

AIS is the Annual Information Statement. This is a detailed statement of transactions entered into by the taxpayer. This statement includes not only income on which tax has been deducted but also details of other income whether or not tax has been deducted. This includes dividend, interest on savings and fixed deposits, other interest, stock market and mutual fund transactions, property transactions etc.

To check the AIS data, taxpayer needs to follow the below steps:

- Login to URL https://www.incometax.gov.in/

- After login, click e-File menu.

- Click on Income Tax Return

- Click on View AIS.

- Click on Proceed button which will redirect to AIS portal

- Click on the AIS icon to view the Annual Information Statement.

Disclaimer

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