For ascertaining whether the multiple data provided by AIS/TIS/Form 26AS helps the assessees or the Department one must understand the contents of all the three and the differences between them. This article aims to dissect these documents, exploring their nuances, benefits, and potential pitfalls.
Annual Information Statement (AIS):
- Annual Information Statement (AIS) is a comprehensive view of information for a taxpayer displayed on Form 26AS.
- Taxpayer can provide feedback on information displayed in AIS.
- AIS was Launched by IT Department in November 2021.
- The AIS informs a taxpayer about information that the income tax department has received from various financial entities during the financial year.
- AIS shows both reported value and modified value (i.e. value after considering taxpayer feedback)
- AIS covers TDS/TCS transactions, SFT information, payment of taxes, demand or refund, and other information.
Taxpayer Information Summary (TIS):
- TIS is a statement that summarizes the tax information available with the Income Tax Department for a particular taxpayer.
- TIS includes details of the taxpayer’s tax returns filed, taxes paid, refunds received, and other relevant information.
- It is essential for taxpayers to review their TIS statement to verify the information and reconcile it with their own records.
Form 26AS
- Form 26AS is a consolidated tax statement.
- Form 26AS contains details of Tax Deducted at Source (TDS) & Tax Collected at Source (TCS).
- It also includes High-Value Transactions, and other relevant information.
- Form 26AS can be accessed online through the income tax department’s website or through the taxpayer’s account on the Income Tax e-filing portal.
Differences between AIS, TIS and Form 26AS
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Form 26AS |
AIS | TIS |
| Currently, Form 26AS primarily displays details of property purchases, high-value investments, and TDS/TCS transactions carried out during the financial year | Annual Information Statement (AIS) is a much more detailed statement. It includes savings account interest, purchase and sale transactions of securities/immovable properties, foreign remittances, interest on deposits, etc. All the information is available in aggregate form as well as individual transaction wise. AIS covers TDS/TCS transactions, SFT information, payment of taxes, demand or refund, and other information. | Taxpayer’s Information Summary (TIS) provides information regarding a taxpayer’s Income, Sale of Shares, Land and Building, etc., Purchase of Shares, Land and Building, Time deposits, Returns filed, Taxes paid and Refunds received etc., |
What is a Statement of Financial Transaction (SFT)?
Filers must provide a statement of financial transaction or reportable account for their defined financial transactions. Such information reported will be reflected in the AIS – Annual Information Statement of the taxpayer. This helps the taxpayer identify all the transactions reported to the income tax department and file their ITR accurately. It allows the IT department to keep track of transactions and prevent illicit activity.
Which are the Specified Financial Transaction?
The specified financial transactions referred above are of the following kinds:
- Sales, Purchase or exchange of goods, right, property or interest in any property.
- Works contract.
- Providing services.
- Any investment made or expenditure incurred.
- Accepting any deposit or taking any loan.
Due Date to File Form 61A
Statement of Financial Transactions needs to be furnished within 31st May of next year for every previous financial year where the transaction occurs.
A penalty u.s 271FA of Rs. 500/- per day shall be levied for the initial failure to file within the due date. The authorities would issue a notice to such an assessee, demanding the assessee to submit the form within 30 days from the issuance of such notice.
Transactions to be reported in Form 61A
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Individuals responsible for furnishing Form 61A |
Type of Transaction and limit |
| A company or an institution issuing debentures or bonds | Receipt exceeding Rs. 10 Lakh or more in a year from an individual for acquiring such debentures/bonds. |
| A company issuing shares | Receipt exceeding Rs. 10 Lakh in a year from an individual for acquiring such shares. This includes share application money received. |
| Listed companies | Share buyback from a person for an amount totalling Rs. 10 Lakh or more |
| Persons liable for audit u.s 44AB of the Income Tax Act | Cash receipt exceeding Rs. 2 Lakh by a person for sale of goods or rendering of services. |
Different Parts of Form 61A
Form 61A has two parts:
- Part A which contains statement level information is common for all transaction types.
- The report level information has to be reported in one of the following parts (depending on the transaction type); –
- Part B (Reporting of aggregated financial transactions by the person)
- Part C (Reporting of Bank Accounts)
- Part D (Reporting of immovable property transactions).
AIS is containing the following 50 Information:
1. Salary:
Employer submits detailed breakup of salary, perquisites, profits in lieu of salary etc paid to the employee in Annexure II of the TDS statement (24Q) of the last quarter. This information is also provided by the employer to the employee (taxpayer) in Part B (Annexure) of Form 16. AIS displays all the financial transactions such as, salary income, dividend income, interest income from saving/fixed deposits, sale and purchase of securities, etc.
2. Rent Received:
Tenants responsible for paying rent are liable to deduct tax at source on payment of rent. Deductor reports details of amount paid/credited, date of payment, details of Tax deduction made etc. in Form 26Q. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
3. Dividends:
Dividend paid/declared by all companies (reporting entity) is reported under Statement of Financial Transactions (SFT). Company paying/distributing dividend is liable to deduct TDS from the amount paid subject to the threshold applicable in the act and report through form 26Q (quarterly statement). This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
4. Interest from savings bank:
Interest paid/credited/accrued on saving account is reported under Statement of Financial Transactions (SFT).
5. Interest from deposit:
Bank/deductor at the time paying/crediting interest on deposits is liable to deduct tax from deposit holder paid subject to the threshold applicable in the act. This information is reported by the Bank/deductor in form 26Q (quarterly statement). This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
6. Interest from others:
Interest paid/credited/accrued on others (other than savings account, term deposit, recurring deposit) is reported under Statement of Financial Transactions (SFT). Bank/deductor at the time paying/crediting other interest (interest on securities) is liable to deduct tax from deposit holder paid subject to the threshold applicable in the act. This information is reported by the Bank/deductor in form 26Q (quarterly statement). This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
7. Interest from income tax refund:
Interest received on Income Tax Refund in the financial year is liable to be taxed as Income from other sources.
8. Rent on plant &machinery:
Tenant paying rent is liable to deduct tax at applicable rate as per the Act from rent paid. Details of rent on Plant & Machinery is reported by the deductor in TDS form 26Q. Tenant furnishes the details of rent paid on quarterly basis. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
9. Winnings from lottery or crossword puzzle:
Payer is liable to deduct tax at applicable rate as per act from winnings from lottery or crossword puzzle etc. Information about winnings is reported by payer in TDS form 26Q. Information is reported on quarterly basis. Income is taxable at special rate. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
10. Winnings from horse race:
Payer is liable to deduct tax at applicable rate as per act from winnings from Horse race. Information about winnings is reported by payer in TDS form 26Q. Information is reported on quarterly basis and is chargeable to tax at special rate. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
11. Receipt of accumulated balance of PF from employer u/s 111:
Employer/recognised provided fund reports information about accumulated balance due to an employee in form 26Q. Information is reported on quarterly basis and is chargeable to tax at special rate. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
12. Interest from infrastructure debt fund:
Information relating to interest paid is reported by payer in form 27Q. Information is reported on quarterly basis and is chargeable to tax at special rate. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
13. Interest from specified company by a non-resident u/s 115A(1)(a) (ii aa):
Information relating to interest paid is reported by payer in form 27Q. Information is reported on quarterly basis and is chargeable to tax at special rate. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
14. Interest on bonds and government securities:
Information relating to interest paid is reported by payer in form 27Q. Information is reported on quarterly basis and is chargeable to tax at special rate. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
15. Income in respect of units of non-resident u/s 115A(1)(a)(ii ab):
Information about income in respect of units of Non Resident is reported by payer in form 27Q. Information is reported on quarterly basis and is chargeable to tax at special rate. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
16. Income and long-term capital gain from units by an offshore fund u/s 115AB(1)(b):
Information about income and long-term capital gain from units payable to an off shore fund is reported by payer in form 27Q. Information is reported on quarterly basis and is chargeable to tax at special rate. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
17. Income and long-term capital gain from foreign currency bonds or shares of Indian companies u/s 115AC:
Information about income and long-term capital gain from foreign currency bonds or shares of Indian companies is reported by payer in form 27Q. Information is reported on quarterly basis and is chargeable to tax at special rate. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
18. Income of foreign institutional investors from securities u/s 115AD(1)(i):
Information about income of foreign institutional investors from securities is reported by payer in form 27Q. Information is reported on quarterly basis and is chargeable to tax at special rate. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
19. Insurance commission:
Information about insurance commission received is reported by the payer in Form 26Q on a quarterly basis. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
20. Receipts from life insurance policy:
Receipts from life insurance policy are exempt under section 10(10D) subject to conditions specified therein. If such conditions are not met, the receipts become taxable and tax is also deducted u/s 194DA. The information is reported by the payer in Form 26Q on a quarterly basis. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
21. Withdrawal of deposits under national savings scheme:
Withdrawals from NSS are taxable. Tax is also deducted on such withdrawals and reported in Form 26Q by the payer on a quarterly basis. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
22. Receipt of commission etc. on sale of lottery tickets:
Commission on lottery business is subject to tax deduction under section 194G. The payer reports such information in Form 26Q on a quarterly basis. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
23. Income from investment in securitization trust:
Income from investment made in securitization trust is subject to tax deduction. The payer reports such information in Form 27Q on a quarterly basis. This information is provided by the deductor to the deductee (taxpayer) in Form 16A
25. Income on account of repurchase of units by MF/UTI:
Receipt of income on account of repurchase of units by MF/UTI is subject to tax deduction under section 194F. The payer reports such information in Form 26Q on a quarterly basis. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
25. Interest or dividend or other sums payable to government:
Income from interest or dividend or other sums payable is not subject to tax deduction. The payer reports such information in Form 26Q on a quarterly basis. This information is provided by the deductor to the deductee (taxpayer) in Form 16A
26. Payment to non-resident sportsmen or sports association u/s 115BBA:
Information pertaining to amount paid to non-resident sportsmen or sports association is reported by deductor in form 27Q. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
27. Sale of land or building:
Sales consideration of immovable property transferred is reported under Statement of Financial Transactions (SFT). The information will be shown in AIS of all sellers to enable submission of feedback. Sale of immovable property is also reported in Form 61 where PAN is not furnished by the transacting party. PAN is populated based on Aadhaar and other attributes of the person. Information related to receipts under specified agreement is reported by person making payment for specified agreement entered into. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
28. Receipts from transfer of immovable property:
Information related to receipts from transfer of immovable property is reported by buyer of property in Form 26QB. This information is provided by the deductor to the deductee (taxpayer) in Form 16B.
29. Sale of vehicle:
Sale of motor vehicle is reported in Form 61 where PAN is not furnished by the transacting party. PAN is populated based on aadhaar and other attributes of the person.
30. Sale of security:
In the SFT reporting of depository transactions, the estimated sale consideration for the debit transaction is determined on the best possible available price of the asset with the depository (e.g. end of day price). The taxpayer will be able to modify the sales consideration and other related information before filing the return. In the SFT reporting of depository transactions, the estimated sale consideration for the debit transaction is determined on the best possible available price of the asset with the depository (e.g. end of day price). The taxpayer will be able to modify the sales consideration and other related information before filing the return.
31. Off market debit transactions:
In the SFT reporting of depository transactions, the depository reports details of off market debit transactions. The value of transaction is computed on the basis of end of day price of the security. In case, the consideration is available, the same is also shown.
32. Off market credit transactions:
In the SFT reporting of depository transactions, the depository reports details of off market credit transactions. The value of transaction is computed on the basis of end of day price.
33. Business receipts:
Information pertaining to amount paid to contractor is reported by contractee in form 26Q. This information is provided by the deductor to the deductee (taxpayer) in Form 16A. Information pertaining to amount paid to the service provider is reported by recipient of services in form 26Q.
34. Rent payments:
Information is reported by person making payment in form 26QC. This information is provided by the deductor to the taxpayer in Form 16C.
35. Business expenses:
Information pertaining to purchase of alcoholic liquor is reported by tax collector in TCS form 27EQ (quarterly statement). This information is provided by the collector to the taxpayer in Form 27D.
36. Miscellaneous payments:
Information is reported by person making payment in form 26QD. This information is provided by the deductor to the taxpayer in Form 16D. Purchase of bank drafts or pay orders may be reported in Form 61 if PAN is not furnished by the transacting party. PAN is populated based on Aadhaar and other attributes of the person.
37. Cash deposits:
Information pertaining to cash deposits in an account other than current account is reported by reporting entity in form 61A. The information will be shown in AIS of all account holders to enable submission of feedback. Information pertaining to cash deposits in current account is reported by reporting entity in form 61A. The information will be shown in AIS of all account holders to enable submission of feedback.
38. Cash payments:
Information pertaining to Cash payments for goods and services is reported by reporting entity in form 61A. Information pertaining to Purchase of bank drafts or pay orders or banker’s cheque in cash is reported by reporting entity in form 61A. Information pertaining to Purchase of prepaid instruments in cash is reported by reporting entity in form 61A.
39. Outward foreign remittance/purchase of foreign currency:
Information of outward foreign remittance is reported by authorised dealer in form 15CC. Information about Remittance under LRS for educational loan taken from financial institutions mentioned in section 80E (Third proviso to Section 206C(1G)) is reported by authorised dealer through TCS form 27EQ for specified foreign remittances made by remitter PAN. Information about Remittance under LRS for purpose other than for purchase of overseas tour package or for educational loan taken from financial institution (Section 206C(1G(a))) is reported by authorised dealer through TCS form 27EQ for specified foreign remittances made by remitter PAN.
40. Cash withdrawals:
Information pertaining to Cash withdrawals from current account is reported by reporting entity in form 61A. The information will be shown in AIS of all account holders to enable submission of feedback. Sometimes, cash withdrawals from accounts other than current account are reported by the Reporting Entity in SFT-004. The information will be shown in AIS of all account holders to enable submission of feedback. Information pertaining to Cash withdrawals is reported by reporting entity through TDS statement 26Q. This information is provided by the deductor to the taxpayer in Form 16.
41. Receipt of foreign remittance:
Information relating to payment of royalty or fees for technical services etc., paid to non- residents is reported by deductor in form 27Q. This information is provided by the deductor to the deductee (taxpayer) in Form 16A. Information is reported by authorised dealer in form 15CC for foreign remittances made by remitter PAN. Information of receipt of foreign remittance by a remitted is reported by authorised dealer in form 15CC.
42. Foreign travel:
Information is reported by deductor in TCS form 27EQ (quarterly statement). This information is provided by the collector to the taxpayer in Form 16D. Payment in connection with travel to any foreign country may be reported in Form 61 if the PAN is not furnished by the transacting party. PAN is populated based on Aadhaar and other attributes of the person.
43. Purchase of immovable property:
Information relating to immovable property is reported by the Property Registrar through SFT. The information will be shown in AIS of all buyers to enable submission of feedback. Buyer at the time of making payment towards purchase of property is liable to deduct tax from the amount paid to the seller subject to the threshold applicable. This information is reported in form 26QB. Seller of property reports the details of property buyer in schedule CG of ITR. Payment for purchase of immovable property may be reported in Form 61 if the PAN is not furnished by the transacting party. PAN is populated based on Aadhaar and other attributes of the person.
44. Purchase of vehicle:
Information is reported by deductor in TCS form 27EQ (quarterly statement). This information is provided by the collector to the taxpayer in Form 16D. Payment for purchase of motor vehicle may be reported in Form 61 if the PAN is not furnished by the transacting party. PAN is populated based on Aadhaar and other attributes of the person.
45. Purchase of time deposits:
Information relating to Purchase of Time deposits is reported by reporting entity (such as the bank) in the Statement of Financial Transaction (SFT). Information pertaining to investment in Time deposit is reported in Form 61 where PAN is not furnished by the transacting party. PAN is populated based on Aadhaar and other attributes of the person.
46. Purchase of securities and units of mutual fund:
Information is reported by reporting entity in the Statement of Financial Transaction (SFT). Purchase of shares (including share application money). Information is reported by reporting entity in the Statement of Financial Transaction (SFT). Information is reported by reporting entity (such as mutual fund companies) in the Statement of Financial Transaction (SFT).
47. Credit/Debit card:
Information pertaining to application for issuance of credit/debit card is reported in Form 61 where PAN is not furnished by the transacting party. PAN is populated based on Aadhaar and other attributes of the person.
48. Balance in account:
Details of bank account other than saving and time deposits opened during the year , as reported in Form 61. Bank account with balance exceeding 50,000 at the closing of Financial year, as reported in Form 61.
49. Income distributed by business trust:
Information relating to income from units of a business trust is reported by payer in form 27Q. Information is reported on quarterly basis and is chargeable to tax at special rate.
50. Income distributed by investment fund:
This information is reported by the deductor in Form 26Q on a quarterly basis.
Check AIS/TIS now in “AIS for Taxpayers” App by Income Tax Dept
- An app has been launched by the Income Tax Department to enable taxpayers to access their Annual Information Statements (AIS) with detailed transaction information.
- The app aims to provide a comprehensive view of the Annual Information System, which includes TDS/TCS data, advance tax, and self-assessment tax details, and now refund information as well.
- This free mobile solution provides taxpayers with easy access to various information about their tax status. The latest update to Form 26AS has been included in the app to provide taxpayers with all the necessary information at their fingertips.
- The app is simple to use for the convenience of taxpayers of all classes and age.
- Download AIS- Taxpayers can download AIS information, provided feedback, consolidated feedback in PDF format.
Initially notices were sent to some assessees with wrong information and to those where there are no mismatches. But once the notice is received in the mail of the assessee, the assessee has to log in to the Income Tax Portal and verify whether the information provided is correct and whether the same matches with the information given in the ITR filed. If there is no mis match, then it is to be informed through portal about the same and if there is actually a mismatch suitable explanation should be given for the mis match or the difference. Finally, if it happens that in the ROI filed, the particular income was left out or understated an Updated Return of Income is to be filed.
But the assessees are confused because of too much of information through various FORMS with duplication of data; the same data appears in two different forms. Further the source from which such information was obtained should also be provided so that the assessee can directly contact the person concerned to sort out the issues. The FORM in which the information is provided should be simple. For example, the present Form 26AS gives unwanted information such as for the Rent paid for twelve months and TDS made on the same for twelve months, 59 entries are found. Hence all the three viz. AIS, TIS and Form 26AS are to be clubbed together and all the required information should be given in one form so that it will be easy for the assessees to go through the same and act on it. In addition, a window should be provided to post their explanation for the difference or mis match so that the same can be verified with the source from where the information was provided and further action can be taken against the entity involved who has provided in the information if the same is wrong or to proceed against the assessee if it is correct for filing updated return if the assessee had already file a Return of Income or to send notice u s 148 to file a Return of Income.
Conclusion: The plethora of information provided by AIS, TIS, and Form 26AS can be both a boon and a bane for taxpayers. While these documents offer valuable insights into one’s financial affairs, the complexity and duplication of data often lead to confusion. Streamlining these documents, consolidating information, and enhancing transparency can significantly alleviate the burden on taxpayers, fostering a more seamless tax compliance process.
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