ITR e-Filing AY 2024-25: Know All About Annual Information Statement And How It Differs From Form 26AS:

ITR e-Filing AY 2024-25: Know All About Annual Information Statement And How It Differs From Form 26AS

The Annual Information Statement (AIS) is considered an important document and was introduced by the Government of India under the Finance Act, 2021; implemented from November 2021. It comprises of a detailed summary of a taxpayer's data provided in Form 26AS. The AIS system provides taxpayers with the convenience to look out for any errors or irregularities present in their declared income or tax payment; this helps in reducing the risk of penalties or tax evasions. One of the major objectives of the AIS is to showcase complete information to the taxpayer and record their feedback online. It also includes information such as interest, securities transactions, foreign remittance, etc.

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All About AIS

• The Annual Information Statement is a system which accounts for a taxpayer's financial transactions, such as dividends, income, foreign remittances, and securities transactions, giving a better insight into income sources.
• AIS permits the taxpayers to give in online feedback and also download the information in PDF, JSON, and CSV file formats.
• Enables pre-filling of return.
• AIS Utility also allows taxpayers to view AIS and provide feedback in an offline mode.
• In order to check AIS, a taxpayer needs to navigate to the official website at https://www.incometax.gov.in and log in with the account credentials. The statement could be found under the 'Services' section; from there the taxpayer needs to select 'Annual Information Statement'. The information can also be downloaded in PDF or JSON format.

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Difference Between AIS and Form 26AS

The major difference between Form 26AS and AIS is that: Form 26AS

• Form 26AS accounts only for high-value transactions and tax deductions such as TDS, TCS, self-assessment tax, advance tax, etc.
• Used by taxpayers for tax compliance, verifying tax credits, and filing income tax returns.
• Low chances of accuracy as it doesn't contain feedback from taxpayers.
• Limited to the Indian Tax system.

AIS

• AIS provides a detailed overview of income and transactions.
• Used for personal finance management.
• Greater accuracy as it includes feedback from taxpayers.
• Differs depending on the country and the financial institution being taken in account