How can AIS aid in the process of filing ITR?

What’s Annual Information Statement (AIS)?

The Annual Information Statement (AIS) is a comprehensive statement that provides taxpayers with a consolidated view of their financial transactions for the financial year. It incorporates data from Form 26AS as well as data from additional sources, including interest on savings account balances, dividends, rent received, sales of securities and real estate, foreign remittances, interest on deposits, GST turnover, etc., as per incometax.gov.in.

Steps To Download the Annual Information Statement (AIS)

1. Go to the Income Tax Department website at https://www.incometax.gov.in/.
2. Log in to your account using your PAN and password.
3. On the dashboard, click on the “Annual Information Statement (AIS)” menu item.
4. Click on the “Proceed” button.
5. You will be redirected to the AIS portal.
6. Click on the “AIS tile” to view your Annual Information Statement.

Alternatively, you can also view your AIS by following these steps:

1. Go to the Income Tax Department website at incometax.gov.in.
2. Log in to your account using your PAN and password.
3. Click on the “e-File” menu item.
4. Click on “Income Tax Return” > “View AIS”.
5. Click on the “Proceed” button.
6. You will be redirected to the AIS portal.
7. Click on the “AIS tile” to view your Annual Information Statement.

Objectives of AIS:

• Provide taxpayers with complete information about their financial transactions.
• Promote voluntary compliance by providing taxpayers with a way to correct any errors in the information.
• Enable seamless prefilling of income tax returns.
• Deter non-compliance by providing taxpayers with a way to report any discrepancies in their financial transactions.

Can You Trust AIS Blindly?

The Annual Information Statement (AIS) is a useful tool for taxpayers to file their income tax returns (ITRs). However, it is important to note that the AIS does not include all of your income. Therefore, you should not rely solely on the AIS when filing your ITR. You should carefully review your AIS and ensure that all of your income is included, and you should also report all of your income, even if it is not included in the AIS, as per the Economic Times.

How are AIS and Form 26AS Different?

AIS is a more comprehensive statement than Form 26AS as it includes information about a wider range of transactions, such as savings account interest, dividends, rent received, purchase and sale transactions of securities and immovable properties, foreign remittances, interest on deposits, GST turnover, etc. AIS also allows taxpayers to give feedback on the information reported, while Form 26AS does not. TIS is a system that aggregates transactions at the information source level, which can help taxpayers get a better understanding of their financial situation.