Form 26AS/ AIS Changes for year 2023–2024: Know the changes

For the year 2023–2024, the Central Government has announced adjustments to the forms and returns’ formats. As part of this, some adjustments are also made to the Form 26AS/Annual Tax Statement (AIS), which the salaried class must use when filing and processing its returns.

From AY 2023-24 onwards, Annual Tax Statement available on TRACES portal will display only TDS/TCS related data. Other details would be available in the AIS (Annual Information Statement) at e-filing portal (https://www.incometax.gov.in/iec/foportal). For data prior to AY 2023-24, there would be no change in display.

As the income tax division processes the TDS returns submitted by the TDS deductors, Form 26AS is updated. A tax passbook known as Form 26AS contains all the information on the tax withheld from an individual’s income, self-assessment tax, and advance tax paid for the applicable year. Similar to how Form 26AS is an extension of AIS. It includes information on all financial transactions made by an individual, regardless of whether taxes are withheld from their income or not. Cross-checking TDS certificates like Form 16/Form 16A with Form 26AS and AIS is crucial for taxpayers.

The details of Transactions under the Proviso to Section 194B, the First Proviso of Section 194R, and the Proviso to Subsection (1) of Section 194S are contained in PART-III of the form starting with the Assessment Year 2023–24, in accordance with the new amended forms. Moreover, Part IV contains information about Tax Deducted at Source on Sale of Immovable Property under Sections 194IA, 194IB, and 194IM. The information on Tax Deducted at Source under Sections 194IA, 194IB, 194M, and 194S (For Buyers, Tenants of Property, Payers of Resident Contractors and Professionals, and Payers of Virtual Digital Assets) is also found in Part VII.

The taxpayer can make sure that the tax withheld from their income is deposited with the government by using Form 26AS/AIS. But if you don’t have any TDS certificates, you can compare the tax amount on your Form 26AS to the net amount that was credited to your bank account. Each of them added together should equal the gross sum indicated in your AIS.

If these numbers line up, filing your ITR will be simple. If there is a discrepancy, you must notify the tax deductor who withholds your income as well as report the error in the AIS to the income tax division.