What is Annual Information Statement (AIS)? How to Check It?

Annual Information Statement (AIS): Everything You Need to Know? 

At the time of filing income tax returns (ITR) in India, the Annual Information Statement (AIS) is an important tool that has been introduced by the Income Tax Department with the view to bringing in increased transparency and ease of compliance. It was rolled out in November 2021 and gives a holistic view of taxpayers’ financial transactions in a complete financial year. Now, it is an important document for taxpayers to review before submitting their returns.

This blog will present in-depth information regarding the Annual Information Statement (AIS), its purpose, constituents, how to get it, and how it is different from Form 26AS.

What is the Annual Information Statement (AIS)?

The Annual Information Statement (AIS) is a detailed statement that contains all the information about all the financial transactions in a given financial year. It can be viewed on the Income Tax e-filing portal and is more detailed compared to the regular Form 26AS by disclosing information such as:

• Salary
• Interest income
• Dividends
• Securities transactions
• Redemption/purchase of mutual funds
• Foreign remittances
• Tax deducted at source (TDS) or Tax collected at source (TCS)
• GST turnover (for businesses)
• Other notified transactions

The AIS consists of two components:

• Part A – General Information: PAN, Aadhaar, name, date of birth, contact details, etc.
• PartB- Detailed Information: Income transactions by source and type

What is the Purpose of AIS?

The AIS is designed to:

• Facilitate full transparency in the reporting of income.
• Pre-populate income tax return forms with accurate data.
• Help taxpayers locate missing or erroneous transactions.
• Override errors and deficiencies in the submission of ITR.
• Facilitate taxpayers’ feedback in case of wrong information.

What are the components of  AIS?

These are the money highlights captured in AIS:

1. TDS/TCS Details

Reports deducted/collected tax details on various heads of income such as salary, interest, and rent.

2. SFT (Specified Financial Transactions)

Most common examples:

• Large cash withdrawals/deposits
• Credit card payments over a specified threshold
• Investments under mutual fund schemes over ₹10 lakh
• Purchase/sale of immovable property

3. Payment of Taxes

Advance tax, self-assessment tax, and regular tax are paid by the taxpayer.

4. Demand and Refund

Income tax demand or refund raised for the year to the taxpayer.

5. Other Information

Foreign remittance, salary details from Form 16, interest on bank and post office, dividend, share transaction, etc.

How to Download AIS on the Income Tax Portal?

To open AIS on the Income Tax Portal, follow the steps mentioned below:

Step 1: Visit https://www.incometax.gov.in and log in using your PAN, Aadhaar, or registered details.

Step 2: Go to the AIS Section: Services → AIS (Annual Information Statement): You will be redirected to the AIS portal.

Step 3: Select Financial Year: when you want to view your AIS.

Step 4: View or Download: Download a PDF or JSON file, You can even view the TIS Taxpayer Information Summary.

How to Open the Downloaded AIS PDF?

As soon as you have downloaded the AIS from the official portal, you can follow the below mentioned steps to open this PDF.

• Open the AIS PDF file that is on your computer
• Now you are asked to enter a password, type your PAN in lowercase letters
• Then you need to type your date of birth or date of incorporation/formation in the format DDMMYYYY without any spaces
• For example, PAN is XXXXX1234X and DOB is 4 March 1997, the potential password is xxxxx1234a04031997
• If all goes well, and you have put correct password, then now you can view and print the AIS PDF file

What is the Difference Between AIS and Form 26AS?

Can You Provide Feedback on AIS Data?

Yes. If you find faulty or duplicated information in your AIS, you can provide feedback online. You have the following options to consider:

1. Information is correct
2. Income is not taxable
3. Income is not my concern
4. Information is duplicated
5. Others (with reason)

Following feedback, the Income Tax Department may update the AIS data accordingly.

Importance of Going Through AIS Before Filing ITR

That is why you need to go through your AIS every year:

• Prevent Mismatches
• The difference between AIS and reported income can result in ITR processing or notice delay.
• Check Correctness
• AIS can be wrong if a reporting organisation (a bank, for example) entered the wrong PAN or amount.
• Claim All Deductions
• AIS can point out tax-saving investments eligible under Sections 80C, 80D, etc.
• Missing Income Sources
• AIS captures small interest incomes on savings accounts, post office, and bonds, which individuals often tend to forget to report.

Suppose your bank TDSed ₹10,000 interest, but you only reported ₹7,000 in ITR.

AIS will show ₹10,000 interest income in SFT/TDS data. This discrepancy can lead to a notice from the tax department. Pre-validation of AIS before filing prevents this.

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The Annual Information Statement (AIS) is a revolution in India’s income tax return compliance. With a bird’s eye view of your financial transactions, it makes it simple to file tax returns, eliminates errors, and improves transparency. Before you submit your income tax return, always review your AIS, reconcile it with your records, and give feedback if necessary. This can keep you compliant, save you penalties, and provide you with a clear picture of your annual financial footprint.