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.
Page Contents
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.
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please give clarity on business expenses in annual information statement
The AIS will fetch data from TCS returns filed by the tax collector and provide the buyer details of expenses incurred, like payment for scrap, license, etc. And allow such buyer to provide feedback whether such information is correct or not or relates to other AY, etc.