A DETAILED GUIDE ON ANNUAL INFORMATION SYSTEM(AIS)
INTRODUCTION:
Annual Information Statement (AIS) is a utility/ form available on Income Tax Portal which displays all the financial and tax related information available with the Tax Department with regard to the taxpayer. It is an extension of an earlier available form, called 26AS, on the portal which contained the information only upon taxes deducted and deposited during the year along with the summary of Specified Financial Transactions (SFT). Now, AIS has brought in added features to the old form 26AS by showcasing information upon bank interest earned, dividend income and sale of securities, in addition to tax related information.
All Information System enables to taxpayers to get a comprehensive view of all the financial information available with the department and accordingly proceed with tax related matters. Also, taxpayers can find details about all material transactions such as sale of listed securities, mutual funds, dividends and interests received, foreign remittances at one place. This will give ease in return filing and others forms. Apart from this, AIS has an added functionality of accepting feedback from taxpayers. The taxpayers can view their financial information in AIS and in case of any disagreement, they may submit their feedback for amendment of such information. The Tax Information Statement (TIS) will then show edited financial information after incorporating such feedbacks.
Components of Annual Information Statement (AIS)
An AIS is divided into two parts:
Part A: General Information It displays general information related to a taxpayer such as his name, PAN, Aadhar Number, date of birth, contact details and address.
Part B: Tax Information Statement (TIS)
1. TDS/TCS: This section displays information about tax deducted at source/ tax collected at source in relation to a taxpayer. It is similar to the information displayed in Form 26AS.
2. SFT Information: This section displays information received by tax department from various reporting entities like banks and NBFCs with regard to specified financial transaction undertaken by the taxpayer during the year like purchase/ sale of immovable property.
3. Payment of Taxes: It displays the quantum of taxes paid by the taxpayer like advance tax, self-assessment tax along with the details like date of payment, challan number etc.
4. Demand and Refund: It displays details regarding any outstanding demand of tax by the department, their quantum and current status at that point of time. It also shows if any refund has been initiated with respect to any assessment year.
5. Other: Any other information in relation to sub-rule (2) of rule 114-I is displayed here.
List of Financial Transactions and sources of information’s for AIS:
1. Under the head Salaries (Section 15 to 17):
(i) Through deductors (employer) of TDS those are required to provide breakup of all payments made to the deductees (employee) under head salaries, perquisites, profits in lieu of salary etc. in Part B (Annexure) of Form 16 and to issue form no. 16 quarterly to the deductees (employees) from the TRACE.
(ii) Through deductors (employers) of TDS those are also required to file Annexure II of the TDS statement (return) 24Q quarterly along with the last quarter statement as on March 31st every year with the TRACE
2. Under the head Dividends :
(i) Through dividend paying corporates (deductors) those are required to file a form SFT – 61A quarterly with the CPC Bangalore against the distribution of dividend to the shareholders. (ii) Through deductors those are required to file a quarterly return in Form no. 26Q with the TRACE against the distribution of dividend to the shareholders
(iii) Through deductors those are also required to issue Form no. 16A quarterly from the TRACE to the deductees against the TDS deducted and deposited.
3. Under the head Income from House Property (Section 22 to 27)
(i) Through deductors (Tenants) those are required to deduct TDS against the payments to deductees (landlords) where tenants are making payments under the head rent on house property exceeding Rs. 5 lakh in a financial year.
(ii) Through tenants (Individuals/HUFs) those are required to file quarterly return in Form 26Q with the TRACE against the income from house property.
(iii) Through deductors those are also required to issue Form no. 16A quarterly from the TRACE to the deductees against the TDS deducted and deposited.
4. Under the head Interest on term deposits/fixed deposits with banks
(i) Through Interest paying banks (deductor) those are required to file a quarterly return in Form no. 26Q with the TRACE against Interest on saving bank accounts
(ii) Through deductors those are also required to issue Form no. 16A quarterly from the TRACE to the deductees against TDS deducted and deposited.
5. Interest from income tax refund
(i) CPC is providing details of interest paid or Income tax refund in a financial year which is taxable under the head Income from other sources.
(ii) Hence SFT-61A and TDS return is not required to be filed separately by the CPC.
6. Receipt of accumulated balance of PF from employer – Section 111
(i) Through deductors those are required to file a quarterly return in Form no. 26Q with the TRACE against receipt of accumulated balance of PF from employer
(ii) Through deductors those are also required to issue Form no. 16A quarterly from the TRACE quarterly to the deductees against TDS deducted and deposited.
7. Interest from infrastructure debt fund
(i) Through deductors those are required to file a quarterly return in Form no. 27Q with the TRACE against Interest from Infrastructure debt fund
(ii) Through deductors those are also required to issue Form no. 16A quarterly from the TRACE to the deductees against TDS deducted and deposited.
8. Interest from specified company by a non-resident – Section 115A(1) (a)(iiaa)
(i) Through deductors those are required to file a quarterly return in Form no. 27Q with the TRACE against interest from specified company by a non-resident.
(ii) Through deductor those are also required to issue Form no. 16A quarterly from the TRACE to the deductees against TDS deducted and deposited.
9. Interest on bonds and government securities
(i) Through deductors those are required to file a quarterly return in Form no. 27Q with the TRACE against interest on bonds and government securities.
(ii) Through deductors those are also required to issue Form no. 16A quarterly from the TRACE to the deductees against TDS deducted and deposited.
10. Income in respect of units of non-resident – Section 115A(1)(a)(iiab)
(i) Through deductors those are required to file a quarterly return in Form no. 27Q with the TRACE against income in respect of units of non-resident.
(ii) Through deductors those are also required to issue Form no. 16A quarterly from the TRACE to the deductees against TDS deducted and deposited
