50 information to be provided in Annual Information Statement

Background of Annual Information Statement (‘AIS’)

In order to promote transparency and simplifying the tax return filing process, CBDT vide Notification dated May 28, 2020 has amended Form 26AS vide Sec 285BB of Income Tax Act, 1961 (‘Act’) read with Rule 114-I of Income Tax Rules, 1962 with effect from June 1, 2020. The new Form 26AS is an Annual Information Statement or AIS which will provide a complete profile of the taxpayer for a particular year.

Format of Annual Information Statement (‘AIS’)

The format of Annual Information Statement is as under:

Part-A: Permanent Account Number, Aadhaar Number, Name, Date of Birth/Incorporation, Mobile Number, Email, Address

Part-B: It contain Information relating to:

• TDS/TCS
• Specified Financial transactions (‘SFT’)
• Payment of taxes
• Demand and Refund
• Pending/Completed Proceedings (Not presently displayed)
• Other [as per sub rule-2 of Rule 114-I]

Features of Annual Information Statement (‘AIS’)

Salient Features of new AIS are as under:

• Inclusion of new information (interest, dividend, securities transactions, mutual fund transactions, foreign remittance information etc.)

• Use of Data Analytics to populate PAN in non-PAN data for inclusion in AIS

• Deduplication of information and generation of a simplified Taxpayer Information Summary (TIS) for ease of filing return (pre-filling will be enabled in a phased manner).

• Taxpayer will be able to submit online feedback on the information displayed in AIS and also download information in PDF, JSON, CSV formats.

• AIS Utility will enable taxpayer to view AIS and upload feedback.

Feedback and Feedback Processing

• The taxpayer will be able to view AIS information and submit following types of response on the information displayed/reported- Information is correct; Not correct; Relates to some other PAN/Year; Duplicate; Others (customised feedback).

• The feedback provided by assessee will be captured in the Annual Information Statement (AIS) and reported value and modified value (i.e., value after feedback) will be shown separately. Feedback shall be reviewed, and suitable changes shall be made in the AIS data from backend.

TIS- Taxpayer Information Summary

TIS is a category wise aggregated information summary for a taxpayer. It shows processed value (i.e., value generated after deduplication of information based on pre-defined rules) and derived value (i.e., value derived after considering the taxpayer feedback and processed value) under each information category (e.g., Salaries, Interest, Dividend etc.). The derived information in TIS will be used for prefilling of Return. It is part of AIS report only.

50 AIS Information Category- Reported under TIS

The broad categories of Information in AIS summary view are as under:

1. Salary

2. Rent received

3. Dividend

4. Interest from savings bank

5. Interest from deposit

6. Interest from others

7. Interest from income tax refund

8. Rent on plant & machinery

9. Winnings from lottery or crossword puzzle u/s 115BB

10. Winnings from horse race u/s 115BB

11. Receipt of accumulated balance of PF from employer u/s 111

12. Interest from infrastructure debt fund u/s 115A(1)(a)(iia)

13. Interest from specified company by a non-resident u/s 115A(1)(a)(iiaa)

14. Interest on bonds and government securities

15. Income in respect of units of non-resident u/s 115A(1)(a)(iiab)

16. Income and long-term capital gain from units by an offshore fund u/s 115AB(1)(b)

17. Income and long-term capital gain from foreign currency bonds or shares of Indian companies’ u/s 115AC

18. Income of foreign institutional investors from securities u/s 115AD(1)(i)

19. Insurance commission

20. Receipts from life insurance policy

21. Withdrawal of deposits under national savings scheme

22. Receipt of commission etc. on sale of lottery tickets

23. Income from investment in securitization trust

24. Income on account of repurchase of units by MF/UTI

25. Interest or dividend or other sums payable to government

26. Sale of land or building

27. Receipts for transfer of immovable property

28. Sale of vehicle

29. Sale of securities and units of mutual fund

30. Off market debit transactions

31. Off market credit transactions

32. Business receipts

33. Business expenses

34. Rent payment

35. Miscellaneous payment

36. Cash deposits

37. Cash withdrawals

38. Cash payments

39. Outward foreign remittance/purchase of foreign currency

40. Receipt of foreign remittance

41. Payment to non-resident sportsmen or sports association u/s 115BBA

42. Foreign travel

43. Purchase of immovable property

44. Purchase of vehicle

45. Purchase of time deposits

46. Purchase of securities and units of mutual funds

47. Credit/Debit card

48. Balance in account

49. Income distributed by business trust

50. Income distributed by investment fund

Key Source of Information

• TDS/TCS return filed by tax deductor/collector
• SFT forms
• Depository and Registrar and Transfer Agents (RTAs), etc.

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(The author has tried to discuss broadly about the recently introduced AIS (replacing form 26AS) and can be reached at [email protected])

Disclaimer: The contents of this document are solely for informational purpose as assimilated basis the reading of the Income tax Act and Notification issued. It does not constitute professional advice or a formal recommendation. While due care has been taken in preparing this document, certain mistakes and omissions may creep in. The author does not accept any liability for any loss or damage of any kind arising out of any inaccurate or incomplete information in this document nor for any actions taken in reliance thereon. No part of this document should be distributed or copied without written permission of the author.