- Date : 08/07/2022
- Read: 3 mins
Are you finding it challenging to keep track of all incomes earned from various sources and taxes paid during a financial year? AIS can give you comprehensive information, while TIS can pre-fill your ITR and ease the process.
People earn income from various sources such as salary, business income, interest, rent, dividend, capital gain, etc. Some people may find it challenging to keep track of all the incomes earned, the taxes paid, and the balance taxes payable, if any. To make it easy for people to calculate their overall income, taxes paid, and taxes payable (if any), the Government has introduced AIS and TIS.
In this article, we will discuss what AIS and TIS are, the information they provide, and how they can help individuals file their income tax returns.
What is the Annual Information Statement (AIS)?
The Annual Information Statement or AIS provides comprehensive information about the taxpayer’s financial transactions. AIS includes the income received from various sources, TDS deducted, TDS deposited, etc. It is a very useful document for the individual when filing income tax returns, and has two parts: A and B.
- Part A: This contains general information about the taxpayer, such as name, contact details, PAN and Aadhaar number, etc.
- Part B: This has information about the income received from various sources and the tax deducted and deposited. It also has information related to specified financial transactions (SFT) such as dividends, interest from savings banks, interest from fixed deposits, purchase and sale of shares and mutual fund units, investment in fixed deposit, etc.
What is Taxpayer Information Summary (TIS)?
The Taxpayer Information Summary (TIS) shows the aggregated value of income earned for ease of filing returns. This information is used for pre-filling the information in the Income Tax Return (ITR) form. It helps calculate the income tax payable and the payment of taxes, if any.
How do AIS and TIS help in filing income tax returns?
As discussed in the above section, the information from TIS is pre-filled in the ITR form. So, with the TIS information, an individual can get a summary of all the incomes earned from various sources and the taxes already paid on it. Using this information, they can calculate their overall income.
They can calculate the income tax payable based on their income tax slab. The amount can then be compared to the tax already paid. Accordingly, the individual can calculate whether any additional tax has to be paid, a refund has to be claimed, or the tax paid is equal to the tax payable. If any additional tax is to be paid, the individual can pay it and proceed with filing the returns.
What if the AIS information is incorrect?
If there is a discrepancy in the AIS information, there is a facility to submit online feedback. Based on AIS feedback, the derived information in the TIS will be automatically updated in real-time. The TIS-derived information will then be used for pre-filling the ITR. In this manner, the taxpayer can make modifications (if any) in the AIS, which will be reflected in the TIS and ITR.
AIS and TIS simplify the ITR process for the taxpayer
AIS gives comprehensive information about the taxpayer’s various sources of income and the taxes deducted and deposited. TIS shows the aggregated value for ease of ITR filing. The TIS information is used for pre-filling the ITR and proceeding with the completion of the ITR process. So, AIS and TIS serve to simplify the ITR filing process for the taxpayer.