As everyone launch or disclose some or the other fruitful or new thing in the festive season, exactly like that Income Tax Department has also come up with Annual Information Statement to provide benefits to the taxpayers.
The Income Tax department has rolled out the new Annual Information Statement (AIS) on the Compliance Portal, which provides a comprehensive view of information to a taxpayer with a facility to give online feedback.
What is the AIS, and how will it help?
The Form 26AS is a consolidated annual tax statement. Form 26AS documents the entire list of Tax deducted at source/Tax collected at source, Advance tax, etc. paid by the taxpayer along with details of taxpayer in the Financial Year. It is available on the Income-Tax website against a taxpayer’s Permanent Account Number (PAN). The 2020-21 Budget had announced the revised Form 26AS, giving a more comprehensive profile of the taxpayer, going beyond the details of tax collected and deducted at source.
The revised AIS (Annual Information Statement) includes additional categories of information – on interest, dividend, securities transactions, mutual fund transactions, and remittances from abroad, along with information on many other transactions that are at present available with the Income-Tax Department. The Income Tax Department also gave one declaration such as “There may be other transactions relating to the taxpayer which are not presently displayed in the AIS”.
Will Form 26A cease to exist now?
Form 26AS will continue to exist on the TRACES portal until the new AIS is validated and is completely operational. In May last year, the Department had notified the new AIS in Form 26AS, effective from June 1, 2020. The revised Form 26AS included all details provided by banks and financial institutions, which were earlier recorded in their Statement of Financial Transactions (SFTs).
On October 26, the Central Board of Direct Taxes (CBDT) issued an order under Section 285BB of the Income-tax Act to expand the scope of reportable transactions under Form 26AS. The additional categories include foreign remittance made by any person through an authorised dealer, breakup of salary with deductions claimed by the employee, information in income tax returns of other taxpayers, interest on income tax refund, information published in SFTs along with off-market transactions reported by the depository/ registrar and transfer agent (RTA), and information about dividend and purchases of mutual fund reported by the RTA.
How to Download Annual Information Statement?
- Visit the income tax website – incometax.gov.in
- Login to your account
- From the ‘Services” dropdown menu, select the final option – “Annual Information Services (AIS)”.
- You will be redirected to the instructions page
- Select the ‘AIS’ tab placed next to ‘Instructions’.
- Select download button
- Next, select the format in which you would like to download the AIS.
- Once the statement is downloaded, open the file.
- Enter a password and view your AIS.