What is Form 26AS?

Form 26AS is a tax credit statement that lists the taxes already paid or deposited against your PAN for a financial year. You should think of it like your tax passbook; it includes the

• TDS (Tax Deducted at Source)
  
• TCS (Tax Collected at Source)
  
• Advance tax or self-assessment tax paid
  
• The tax refunds received
  
• High value transactions, e.g. property purchase
  
• Transaction details for mutual funds

In general, the form only covers tax-related components. Therefore, if you see anything incorrect, you can ask the entity that deducted the tax to modify any information.

What is the Annual Information Statement (AIS)?

The AIS is simply a more advanced version of Form 26AS and is broader. The AIS contains everything on Form 26AS and some additional financial information, including

• Interest received from savings bank accounts and fixed deposits
  
• Earnings from dividends
  
• Purchases and redemptions of mutual funds
  
• Shares transactions
  
• Rent
  
• Foreign remittance (LRS)
  
• Credit card payment
  
• Property purchases and sales

The AIS gives you a wider view of your financial activities as reported to the tax department. You can provide feedback on the information included in your AIS if needed.

Why Are These Documents Important?

These documents help with cross-verification of your complete financial data. They ensure that you make full and accurate income disclosures when filing your tax returns. Having all this information in one place makes tax filing easier and helps prevent conflicts between your disclosed income and what the tax department already knows.

Legal Basis

Form 26AS is governed by Rule 31AB of the Income Tax Rules, while the AIS is governed by Section 285BB and Rule 114-I.

By regularly checking these documents, you can ensure your tax compliance is in order and avoid notices that may be issued or penalties from the tax department.