Annual Information Statement: A Comprehensive Guide on AIS, AIS password and Feedback

What is an Annual Information Statement?

The Annual Information Statement (AIS) is a comprehensive overview of taxpayer information on Form 26AS. Taxpayers can provide feedback on the information displayed on the AIS. Under each section (i.e., TDS, SFT, Other information), AIS displays both the reported value and the derived value (i.e., the value after considering taxpayer feedback). The objectives of AIS are to:

• Provide complete information to taxpayers, including the ability to provide online feedback.
• Encourage voluntary compliance by allowing for seamless prefilling of returns.
• Deter non-compliance
  In this guide, we will explore the annual information statement in detail.

What are the features of the Annual Information Statement?

• It includes new data such as interest, dividends, securities transactions, mutual fund transactions, international remittance data, etc.
• Information duplication is eliminated, and a streamlined Taxpayer Information Summary (TIS) is generated for easier return filing (pre-filling will be enabled in a phased manner).
• Taxpayers will be able to provide online feedback on the information provided in AIS and download data in PDF, JSON, and CSV forms.
• The AIS Utility will allow taxpayers to view AIS and provide feedback.
• The AIS Mobile App allows taxpayers to view AIS and provide feedback on their handheld devices.

What are the Different Types of Information Shown in AIS?

The information displayed on AIS is split into two sections:

Part- A
Part-A contains general information about you, such as your PAN, Masked Aadhar Number, Name of the Taxpayer, Date of Birth/Incorporation/Formation, mobile number, e-mail address, and Taxpayer's address.

PART- B
TDS/TCS Information: - This section displays information about tax deducted/collected at the source. The TDS/TCS Information code, category, source of such information, description, and value are displayed.

SFT Information: - Information received from reporting entities under the Statement of Financial Transaction (SFT) is displayed under this heading. Obtaining the SFT code, Information description, and Information value is possible.

Tax Payments: - This section displays information about tax payments under several headings, such as Advance Tax and Self-Assessment Tax.

Demand and Refund: - During a financial year, you will be able to see the specifics of the demand made and the refund initiated (AY and amount).

Other Information: - This section displays details on information obtained from other sources, such as data on Annexure-II salary, interest on refunds, outward foreign remittances/purchases of foreign currency, and so on.

How to check Annual Information status (AIS)?

Here are the steps to check AIS:

1. Visit the official website (https://eportal.incometax.gov.in/iec/foservices/#/login) of the Income Tax Department of India.
2. Log in to your account by entering your User ID, and Password.
3. Once you have logged in, click on the "services " option from the main menu.
4. Select the "AIS (Annual Information Services) " option from the dropdown menu. It will redirect you to the compliance portal, click proceed for visiting the compliance portal.
5. Choose the relevant assessment year for which you want to check the AIS.
6. You can open AIS by clicking on the AIS option on the compliance portal page. Also, there you can see 2 options, one is download and the other is upload AIS feedback file
7. If the AIS is available, it will be displayed on the screen. You can download and print the document for future reference.

If the AIS is unavailable, you can contact the Income Tax Department's customer care service for further assistance.

How to open the downloaded AIS PDF?

If you download the PDF file, it is password protected. To unlock the AIS PDF file, follow these steps:

1. Open the AIS PDF file on your computer.
2. When prompted to enter the password, type your Permanent Account Number (PAN) in lowercase letters.
3. Then, type your date of birth or date of incorporation/formation in the format DDMMYYYY without any spaces.
4. For example, if your PAN is AAAAA1234A and your date of birth is 28th July 1997, the password will be aaaaa1234a28071997.
5. After entering the correct password, you can view and print the AIS PDF file.

If you encounter any issues or errors while unlocking the AIS PDF file, you can contact the Income Tax Department's customer care service for further assistance.

What is the difference between the AIS and Form 26AS?

Form 26AS mostly shows the information on property purchases, high-value investments, and TDS/TCS transactions made throughout the fiscal year.

A far more extensive statement is the Annual Information Statement (AIS). It covers savings account interest, securities/immovable property purchase and sale transactions, overseas remittances, deposit interest, etc. All of the data is available in aggregate for each transaction.

TDS/TCS transactions, SFT information, tax payment, demand or refund, and other information are all covered by AIS. Only Form 26AS is displayed if the taxpayer has to verify GST turnover based on the information provided in Form GSTR-3B. AIS does not capture GST information.

Step-by-step Guide for Accessing AIS and TIS through e-Filing Portal

Taxpayers can access their AIS by going to the e-filing portal and logging in with their PAN or Aadhaar number:

Step 1: Use the URL https://www.incometax.gov.in/ to access the e-filing system.

Step 2: Click the "Login" button in the top-right corner of the webpage.

Step 3: Enter user ID i.e. PAN No and click on “Continue”

Step 4: Enter your password and click on “Continue” to navigate to the e-filing portal homepage

Step 5: Click on the AIS tab under the service section

Step 6: On the AIS home page you will see the two different parts

Display of Information Reported Under TDS & SFT

Information under TDS

Information under SFT

AIS Preparation Steps

The following are some important steps in the information processing process:

• PAN Population: If the given information does not have a valid PAN, the PAN will be populated based on matching Aadhaar and other essential parameters.
• Information Display: In most cases, the reported information is shown next to the PAN holder. The information display logic for specific information such as property, bank account, Demat account, etc., intends to display information to relevant PAN holders for evaluation and feedback.
• Information Deduplication: When the same information is reported under different information types (for example, interest/dividend reporting in SFT and TDS), the information with the lesser value is tagged as "Information is duplicate / included in other information" by automatic rules.
• Preparation of the Taxpayer Information Summary (TIS): After deduplicating information based on pre-defined rules, a taxpayer's aggregated information summary is created by information category. Under each information category, it displays the processed value (i.e., the value obtained after deduplication of data based on pre-defined rules) and derived value (i.e., value derived by considering taxpayer feedback and processed value).

How to submit feedback in AIS?

The taxpayer will have access to AIS data and be able to provide the following types of responses in response to it.

• Information is correct
• Receipt is not taxable
• Receipt is like reimbursement of expenses
• Receipt like refundable security

Processing of AIS Feedback

The AIS processing approach is as follows:

• The assessee's feedback will be recorded in the Annual Information Statement (AIS), and the reported value and modified value (i.e., the value following feedback) will be displayed separately.
• The assessee's input will be used to update the derived value (the value calculated after taking into account the taxpayer's feedback) in the Taxpayer Information Summary (TIS)
• Information in AIS assigned to other PAN/Years will be processed and shown in the taxpayer's AIS using automatic rules.
• If the assigned information is changed or refused, the feedback will be assessed according to risk management guidelines, with high-risk feedback highlighted for further investigation.

Launch of AIS app by IT department: How is it convenient for taxpayers?

Recently, for taxpayers' convenience, the Income Tax department has launched the Annual Information Statement (AIS) mobile app called “AIS for Taxpayer,” which allows taxpayers to easily access their tax-related information on the Annual Information statement on their mobile phones. The app provides a simple and user-friendly platform named the "AIS for Taxpayer" app. This app is free of cost and can be downloaded from the google play store and the apple app store.

The app details various financial transactions such as TDS (Tax Deducted at Source), TCS (Tax Collected at Source), interest, dividends, share transactions, tax payments, income tax refunds, and foreign remittances.

This app allows taxpayers to easily track and monitor financial transactions so that they can calculate their tax liability and ensure compliance with tax regulations. Additionally, the app allows users to provide feedback regarding the information displayed. The app makes it convenient for taxpayers to access their financial information on the go, anytime and anywhere.

To register and set MPIN for AIS for Taxpayer App on mobile, please follow these steps:

1. Download the AIS for Taxpayers App from the app store on your mobile device.
2. An Onboarding screen will pear where you can tab and select “Get Started”.
3. Enter your PAN number and Date of Birth, and select your preferred login ID.
4. Next, you will be prompted to enter your PAN and the date of your birth/incorporation/formation; check the box next to the terms and conditions.
5. Now enter your mobile number and email ID.
6. Separate OTPs will be shared on the primary mobile number and email address. Enter the OTPs received and click “Verify”.
7. Now the “MPIN” page will open, where you need to enter a 4-digit MPIN and select Next.
8. Confirm the MPIN by re-entering it in the next field.
9. Click on the "Submit" button.
10. Once MPIN is successfully set up, the user is registered and can log in using the MPIN.

Please Note:- The user will only have five attempts to input the MPIN correctly. If the user cannot enter the right MPIN after the number of attempts allowed, the user account will be locked for 24 hours. Hence, if you forget the MPIn password, you can use forgot MPIN to reset the MPIN.