New I-T Annual Information Statement: How does the new AIS impact Form 26 AS?

Find out more about the new Annual Information Statement (AIS).

Understanding the new I-T Annual Information Statement and how it will affect taxpayers

The Income Tax Department of India recently introduced a new Annual Information Statement (AIS) on their online portal. This statement contains taxpayer information as well as information on mutual fund transactions, foreign remittance, interest and dividends earned, and securities transactions. 

Keep reading to find out more.

What is the new Annual Information Statement (AIS)?

The new AIS includes information on additional tax categories, such as tax deducted at source (TDS) and tax collected at source (TCS), interest and dividends earned, remittances from abroad, mutual fund transactions, and securities transactions. The new AIS can also be used to submit feedback. The feedback submitted by a taxpayer will be updated in real-time. 

These features were previously missing in Form 26 AS. Form 26 AS contains details of advance tax, TDS, and self-assessment. This form can be found on the income tax website. Any taxpayer can visit the website, enter their Permanent Account Number (PAN), and check the Form 26 AS. In the Budget 2020-21, the government had announced the revised version of Form 26 AS. This new version contains more wholesome and detailed information on the taxpayer. The new AIS is a step forward that contains more additional information.

Related: What Are The Income Tax Implications Of Selling Or Switching Mutual Funds?

How does the new AIS impact Form 26 AS?

There has been no impact of the new AIS on Form 26 AS, as of now. Form 26 AS will be available on the income tax portal until the new AIS is authenticated and operational. However, in May 2020, the Income Tax Department had added the new AIS in Form 26 AS. The new statement that was put into effect on June 1, 2020, contained details previously available in the Statement of Financial Transactions (SFTs). These included any figures provided by banks and financial institutions on the taxpayer.

Related: Different ITR Forms You Should Know About

What does this mean for taxpayers?

The Income Tax Department shared some dos and don’ts for taxpayers when using the new AIS. Taxpayers must use only the latest version of AIS. They can give feedback on the information displayed in the AIS and check their taxpayer information summary (TIS) to confirm the values used for pre-filing their income tax returns. However, the taxpayer cannot use the older version of AIS JSON for feedback. It is also advised not to provide incorrect feedback or share personal e-filing credentials with another person. 

Taxpayers can visit the new Income tax e-filing portal and click on "Annual Information Statement" (AIS) under the 'Services' tab. The feedback can be submitted in bulk. It can also be done offline. The feedback can be seen in a separate tab on the AIS.

Also read: How is taxable income calculated?

To sum it up

The new AIS aims to increase transparency in the system. However, taxpayers must keep the dos and don’ts issued by the Income Tax Department in mind when using the new AIS. The department is working on other features too that may be introduced at a later stage.

The Income Tax Department of India recently introduced a new Annual Information Statement (AIS) on their online portal. This statement contains taxpayer information as well as information on mutual fund transactions, foreign remittance, interest and dividends earned, and securities transactions. 

Keep reading to find out more.

What is the new Annual Information Statement (AIS)?

The new AIS includes information on additional tax categories, such as tax deducted at source (TDS) and tax collected at source (TCS), interest and dividends earned, remittances from abroad, mutual fund transactions, and securities transactions. The new AIS can also be used to submit feedback. The feedback submitted by a taxpayer will be updated in real-time. 

These features were previously missing in Form 26 AS. Form 26 AS contains details of advance tax, TDS, and self-assessment. This form can be found on the income tax website. Any taxpayer can visit the website, enter their Permanent Account Number (PAN), and check the Form 26 AS. In the Budget 2020-21, the government had announced the revised version of Form 26 AS. This new version contains more wholesome and detailed information on the taxpayer. The new AIS is a step forward that contains more additional information.

Related: What Are The Income Tax Implications Of Selling Or Switching Mutual Funds?

How does the new AIS impact Form 26 AS?

There has been no impact of the new AIS on Form 26 AS, as of now. Form 26 AS will be available on the income tax portal until the new AIS is authenticated and operational. However, in May 2020, the Income Tax Department had added the new AIS in Form 26 AS. The new statement that was put into effect on June 1, 2020, contained details previously available in the Statement of Financial Transactions (SFTs). These included any figures provided by banks and financial institutions on the taxpayer.

Related: Different ITR Forms You Should Know About

What does this mean for taxpayers?

The Income Tax Department shared some dos and don’ts for taxpayers when using the new AIS. Taxpayers must use only the latest version of AIS. They can give feedback on the information displayed in the AIS and check their taxpayer information summary (TIS) to confirm the values used for pre-filing their income tax returns. However, the taxpayer cannot use the older version of AIS JSON for feedback. It is also advised not to provide incorrect feedback or share personal e-filing credentials with another person. 

Taxpayers can visit the new Income tax e-filing portal and click on "Annual Information Statement" (AIS) under the 'Services' tab. The feedback can be submitted in bulk. It can also be done offline. The feedback can be seen in a separate tab on the AIS.

Also read: How is taxable income calculated?

To sum it up

The new AIS aims to increase transparency in the system. However, taxpayers must keep the dos and don’ts issued by the Income Tax Department in mind when using the new AIS. The department is working on other features too that may be introduced at a later stage.

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