The introduction of AIS (Annual Information Statement) has simplified tax documentation to a great extent. It provides a complete record of your financial transactions during a fiscal year, including your income, interest, dividends, Tax Deducted at Source (TDS), Tax Collected at Source (TCS), etc. But what exactly is the AIS, how you can download it, and how you can use it for ITR (Income Tax Return)? Below, you will get answers to these questions and find more information.
What is an Annual Information Statement?
AIS is an annual statement containing information about all your financial transactions during a fiscal year. This vital document lists all your finance-related information in one place. These include your income, rent, dividends, interest, expensive purchases, etc. As a taxpayer, you must cross-check this document before filing your ITR.
The information included in the AIS is as follows:
- Income earned from various sources, including salary, interest, dividend, property transactions, recurring deposits, selling or purchasing bonds, equity shares, mutual funds, etc.
- Information related to TDS, TCS and other tax refunds or demand
Objectives of an Annual Information Statement
The objectives behind AIS are as follows:
- Displays Information: The statement provides comprehensive financial details in a single place. You may refer to it for a complete insight into your finances.
- Ensures Compliance: With readily available financial information, it ensures tax compliance with reduced chances of income underreporting.
- Streamlines Tax Filing: AIS pre-fills ITRs, making the filing process faster and easier.
Stepwise Instructions to Download the AIS
Downloading your AIS is a simple process. You may complete it using these steps:
Step 1: Visiting the Income Tax e-Filing Portal: Open your internet browser and visit the official income tax e-filing portal at www.incometax.gov.in.
Step 2: Logging in to the Account: Use your login credentials to access your account. If you have not created an account yet, provide your PAN number to register. It is mandatory to access various services on the portal.
Step 3: Navigating to the AIS Section: After logging in, go to ‘Services’ tab and select ‘Annual Information Statement (AIS)’ from the dropdown menu.
Step 4: Selecting the Financial Year: Select the financial year for which you want the AIS.
Step 5: Accessing the AIS: Once you select the AIS and year, a new page will open where you can view your Annual Information Statement.
Step 6: Downloading the AIS: On the new page that appears, you will see a ‘Download’ button. Click PDF or JSON to download the statement in your desired format.
Password to Open the Annual Information Statement
Since the AIS you download contains sensitive financial and personal information, it is password-protected. You must enter a relevant password to open it after downloading. The password is your PAN in lowercase, followed by your date of birth. For non-individual taxpayers, it is the PAN in lowercase, followed by their date of formation or incorporation. It is in DDMMYY format without any special characters or spaces.
For instance, if your PAN number is XXXXX1234X and your date of birth is 6th November 1983, your password to open the AIS will be xxxx1234x06111983. For non-individuals, the format will remain the same. However, the date of birth section will be replaced by its date of formation or incorporation.
How to Use AIS for Filing Income Tax Returns?
Follow these steps to file your Income Tax Return using AIS:
- Visit the income tax portal at www.incometax.gov.in.
- Enter your login details to access your account.
- Follow the above steps to download AIS from the income tax portal. The document contains your financial and taxation details.
- Carefully select the tax regime you want to opt for.
- Review and check the actual TDS, TCS, or tax paid. If there is a discrepancy, reconcile it with your bank, tax deductor, or employer.
- Gather the documents required to file the ITR. These include your passbook, bank statement, claims deductions or exemptions, interest certificates, Form 16, AIS, investment proofs, etc.
- Double-check the details in the pre-filled form, including your bank account, contact, address, and PAN details.
- Select the type of return you want to file.
- Provide details like your total income, interest, deductions, tax payments or collections, etc.
- File the ITR electronically on or before the due date. Delaying the process attracts late filing fees, loss of tax deductions or exemptions, and refusal to carry forward the losses.
- After filing the ITR, e-verify it electronically. You can also verify it physically by sending a copy of the ITR-V Acknowledgement to the Centralised Processing Centre, Income Tax Department, Bengaluru 560500 (Karnataka).
The Income Tax Department launched the Annual Information Statement in 2021. The document proves your income for finance companies, improving your eligibility for credit products like instant Personal Loans. Since it may contain errors or duplicates, you must check it thoroughly before filing the ITR.
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