Annual Information Statement

Understanding the Annual Information Statement (AIS): A Comprehensive Guide

The Annual Information Statement (AIS) was introduced by the Income Tax Department of India to provide taxpayers with a comprehensive view of their financial information. AIS extends the functionality of Form 26AS, offering detailed insights into various financial transactions and sources of income. This blog will walk you through the phases of AIS introduction, its components, and how you can access this valuable information. Keywords: Annual Information Statement, AIS, Income Tax Department, Form 26AS, financial transactions.

Introduction to AIS

The Annual Information Statement (AIS) was launched in phases by the Income Tax Department:

Phase 1: In May 2021, AIS was first introduced for the financial year 2020-21 (Assessment Year 2021-22). It was made available on the Income Tax Department's website and mobile app.

Phase 2: From June 2021, AIS was expanded to include additional information, such as:

• Interest income from banks and post offices

• Dividend income

• Capital gains from stock markets

• Transactions from mutual funds and exchange-traded funds (ETFs)

AIS: An Extension of Form 26AS

AIS extends the details provided in Form 26AS, which traditionally displays information on property purchases, high-value investments, and TDS/TCS transactions carried out during the financial year. The expanded AIS additionally includes:

• Savings account interest

• Dividend income

• Purchase and sale transactions of securities/immovable properties

• Foreign remittances

• Interest on deposits

• GST turnover

Components of AIS

The information in AIS is divided into two parts:

Part A - General Information: This section includes:

• PAN

• Masked Aadhar Number

• Name of the Taxpayer

• Date of Birth/ Incorporation/ Formation

• Mobile number

• E-mail address

• Address of the Taxpayer

Part B - TDS/TCS Information: This section includes:

• Information related to tax deducted/collected at source

• SFT Information: Details received from reporting entities under Statement of Financial Transaction (SFT)

• Payment of Taxes: Details of payments such as Advance Tax and Self-Assessment Tax

• Demand and Refund: Details of demand raised and refund initiated during the financial year

• Other Information: Additional data such as Annexure II salary, interest on refund, outward foreign remittance/purchase of foreign currency

How to Access AIS

To access the Annual Information Statement functionality, follow these steps:

1. Step 1: Login to the Income Tax Department's e-portal: Income Tax e-Portal

2. Step 2: After logging in, click on the "Annual Information Statement (AIS)" menu on the dashboard.

3. Step 3: Click on the "Proceed" button, which will redirect you to the AIS portal. Click on the AIS tile to view the Annual Information Statement.

Benefits of AIS

Since its introduction, AIS has become a comprehensive statement that provides a one-stop solution for taxpayers to view their financial transactions and tax-related information. The transparency and detailed information offered by AIS help taxpayers ensure accuracy and compliance in their financial reporting.

Conclusion

The Annual Information Statement (AIS) introduced by the Income Tax Department of India represents a significant step towards financial transparency and compliance. By providing a comprehensive view of a taxpayer's financial transactions, AIS helps in accurate tax reporting and planning. Ensure you regularly check your AIS to stay informed about your financial activities and tax obligations.

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