All you need to know about AIS TIS 26AS - Sinewave Computer Services Pvt Ltd

Government of India with the help of CBDT have aimed at ensuring accuracy, transparency and authenticity of financial transactions carried out by different types of persons. Since we live in the age of automation, keeping a track of activities done in the financial sector has been comparatively easy as escaping any kind of significant financial transaction has become a little difficult due to this.

Keeping in mind increased flow of financial transactions, CBDT has come up with a portal of income tax where specified financial transactions of different persons are reflected. One of such portal is of Traces portal where Form 26AS is reflected which provides a detailed overview of your financial activities for a specific year, including not just TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) transactions but also showing proofs of incomes, payment of taxes, foreign remittance details or amount of income tax refunded etc. Recently, CBDT has also enabled AIS(Annual Information Statement) and TIS (Taxpayer Information Summary) which shows entire summary of Incomes, tax payments, remittances or any other kind of significant financial transaction of a person. Reporting of such financial transactions are done by various authorities like Banks, financial institutions or corporations to the CBDT in order to make their compliance of reporting.

Annual Information Statement (AIS):
AIS is a comprehensive information of a taxpayer as reported in form 26AS. This also provides taxpayer an option to modify information reflected on AIS portal. Objectives of AIS includes accuracy in financial reporting, modification to the information wherever necessary or seamless compliance and prefilling of Income tax return. AIS is the extension of Form 26AS. Form 26AS displays details of property purchases, high-value investments, and TDS/TCS transactions carried out during the financial year. AIS additionally includes savings account interest, dividend, rent received, purchase and sale transactions of securities/immovable properties, foreign remittances, interest on deposits, GST turnover etc.

To access AIS portal, one has to login to income tax portal with his registered account and then clicking on AIS tab will redirect him to the AIS portal.

AIS has two types of information which is PART A General information and PART B TDS/TCS information.

PART A displays general information pertaining to you, including PAN, Masked Aadhar Number, Name of the Taxpayer, Date of Birth/ Incorporation/ Formation, mobile number, e-mail address and address of Taxpayer.

PART B displays Information related to tax deducted/collected at source. This also displays information like SFT or High-value transactions, payment of other than TDS/TCS taxes, Demand or Refund amounts and any type of other information required to be reported on AIS.

Taxpayer Information Summary:
Taxpayer Information Summary (TIS) is an information category wise aggregated information summary for a taxpayer. It shows value processed by system (i.e. value generated after deduplication of information based on pre-defined rules) and value accepted by taxpayer (i.e. value derived by taxpayer after considering the taxpayer feedback and value processed by system) under each information category (e.g. Salary, Interest, Dividend etc.). The information accepted by taxpayer in TIS will be used for pre-filling of return, if applicable. TIS tab is very next to the tab of AIS on the AIS portal.

You will be shown various details within the Taxpayer Information Summary such as,

Information Category
Value processed by system
Value accepted by taxpayer

Further, within an Information Category, following information is shown:

Part through which information received
Information Description
Information Source
Amount Description
Amount (Reported by Source, Processed by System, Accepted by Taxpayer)

Form 26AS:
Form 26AS reports information related to amount of income generated by a taxpayer as reported to CBDT by various authorities and the details of tax payments of the taxpayers. Form 26AS is divided in PART A to PART G which shows :

A) Details of TDS
B) Details of TCS
C) Details of Tax Paid (Other than TDS or TCS)
D) Details of Paid Refund
E) Details of Statement of Financial Transactions (SFT)
F) TDS on Property Sale, Rent, and Professional Fees (From Buyer/Tenant Perspective)
G) TDS Defaults (Processing of Defaults)

Checking all the information reflected in Form 26AS is important while filing your ITR as any mismatch in reporting of ITR by taxpayer and information in 26AS may lead to scrutiny or notices by Department of Income tax.

Conclusion:
Verifying all the information reflected in Form 26AS, AIS and TIS is necessary while filing ITR as any omission of information in ITR of these amounts will lead to multiple consequences to taxpayer. These above reporting information statements provides taxpayer with seamless information so that no information is left out from reporting and transparency, accuracy and authenticity is maintained in financial transactions.

About Author:
CA Chinmay Shirish Agate
Chinmay Agate is a Practicing Chartered Accountant having 4+ years of experience and expertise in the field of Direct Taxation and Auditing compliances. In the past, he worked in various CA firms and comes with wide industry experience from services, retail to manufacturing to trading where he has handled various complex assignments. He has keen interest in Forex and Derivative knowledge as well as fundamental analysis.