Form 26AS, AIS, TIS.

Income tax filing is quite an overwhelming process for many. Understanding different income tax documents and their significance is crucial to file a precise return. Three central figures namely, Form 26AS, Annual Information System (AIS) & Taxpayer Information Summary (TIS) will be explicitly laid open, elucidating how they factor into effective income tax return planning and filing.

FORM 26AS:

Filing ITR involves a host of documents, which substantiate a person’s tax liability. One such critical piece of document is Form 26AS. It’s an annual consolidated credit statement, containing information on direct taxes that a person has already paid to the government. Income Tax Form 26AS acts a ledger of all taxes paid and refunds received during a specific Assessment Year. By means of this document, it is ensured that accurate taxes have been deducted from a person’s income and deposited into the government’s account. 

(Every taxpayer can access their Form 26AS via the Income Tax Department’s official website by using their Permanent Account Number or PAN.)

Structure of form 26AS (From FY 2022-23 and onwards):

PART-I: Details of Tax Deducted at Source. (TDS on salary, business, profession, interest income etc., shall be reported here)

PART-II: Details of Tax Deducted at Source for 15G/15H. (TDS on which no TDS is made because of Form 15G/15H due to income being less than the basic exemption limit.)

PART-III: Details of Transactions under Proviso to section 194B/First Proviso to sub-section (1) of section 194R/ Proviso to sub-section (1) of section 194S. (TDS made on payment made in kind (car in a lottery, foreign trips for meeting sales targets etc.)

PART-IV: Details of Tax Deducted at Source u/s 194IA/ 194IB / 194M/ 194S (For Seller/Landlord of Property/Contractors or Professionals/ Seller of Virtual Digital Asset. TDS made on sale of house property/rent payment in excess of Rs. 50,000 per month, payment to a contractor / professional service in excess of Rs.50 lakhs/sale of virtual digital asset (cryptocurrency).)

PART-V: Details of Transactions under Proviso to sub-section (1) of section 194S as per Form-26QE (For Seller of Virtual Digital Asset).

PART-VI: Details of Tax Collected at Source. (TCS made under various sections of 206C).

PART-VII: Details of Paid Refund (For which source is CPC TDS. For other details refer AIS at E-filing portal).

PART-VIII: Details of Tax Deducted at Source u/s 194IA/ 194IB /194M/194S (For Buyer/Tenant of Property /Person making payment to contractors or Professionals / Buyer of Virtual Digital Asset. These details consist of the TDS made by you in relation to the purchase of house property/rent payment in excess of Rs. 50,000 per month, payment to a contractor/professional service in excess of Rs.50 lakhs/purchase of virtual digital asset (cryptocurrency). This is just for information purposes.)

PART-IX: Details of Transactions/Demand Payments under Proviso to sub-section(1) of section 194S as per Form 26QE (For Buyer of Virtual Digital Asset)

PART-X: TDS/TCS Defaults (Processing of Statements. TDS defaults value (after processing of TDS returns) but do not include demands raised by the assessing officer.)

Importance of Form 26AS for ITR Filing:

The Income Tax Department provides a user-friendly online platform for taxpayers        to access their Form 26AS. By logging into their accounts on the Income Tax e-filing portal, taxpayers can conveniently view, download, and cross-reference their Form 26AS. This easy accessibility enables taxpayers to verify the accuracy of the information presented in the form and identify any discrepancies or missing details that need to be addressed before filing their ITRs. Its importance is highlighted below:

1. Proof of tax payments.
2. Correct income reporting.
3. Verification of TDS certificate.
4. Claiming tax credits.

ANNUAL INFORMATION STATEMENT (AIS):

The tax department has introduced an Annual Information Statement (AIS) to incorporate new details like foreign remittances, off-market transactions, interest on income tax refunds, mutual fund purchases and dividend details, and break-up details of salary and ITR information of another person.

 The AIS report has two parts: (i) Taxpayers Information Summary (TIS) and (ii) Annual Information Statement (AIS). TIS is a simplified statement showing aggregate value, whereas AIS is a comprehensive statement. TIS shows the processed value (i.e. the value according to income tax records) and derived value (i.e. the value modified after considering the taxpayer’s feedback). On feedback submission, the derived information in TIS will automatically update in real-time.

The information shown on AIS is divided in two parts:

PART A- General Information

Part A displays general information pertaining to you, including PAN, Masked Aadhar Number, Name of the Taxpayer, Date of Birth/ Incorporation/ Formation, mobile number, e-mail address and address of Taxpayer.

PART B – TDS/TCS Information

Information related to tax deducted/collected at source is displayed here. The Information code of the TDS/TCS, Information description and Information value is shown.

TAXPAYER INFORMATION SYSTEM (TIS):

In addition to the Annual Information System (AIS) and Form 26AS, taxpayers also need to familiarize themselves with the Taxpayer Information Summary (TIS). The TIS statement provides taxpayers with a summarized overview of their tax-related information, including tax returns filed, taxes paid, refunds received, and other essential details.

The Taxpayer Information Summary (TIS) is a statement that consolidates the tax information available with the Income Tax Department for a specific taxpayer. The TIS statement includes details such as the number of tax returns filed by the taxpayer, taxes paid, refunds received, and any outstanding tax liabilities. It serves as a useful tool for taxpayers to review and reconcile their own tax records with the information maintained by the Income Tax Department.

Importance of AIS and TIS for Taxpayers:

The Annual Information System (AIS) and Taxpayer Information Summary (TIS) play significant roles in the tax compliance process for individuals and businesses. These systems provide taxpayers with comprehensive information about their financial transactions, taxes deducted at source, taxes paid, and refunds received. Understanding the importance of AIS and TIS can help taxpayers ensure accurate reporting of their income and taxes, avoid discrepancies, and stay compliant with tax laws.

Accessing the Annual Information System (AIS) and Taxpayer Information Summary (TIS) is crucial for taxpayers to stay informed about their tax obligations and ensure accuracy in their tax filings. The Income Tax Department provides a user-friendly online platform that enables taxpayers to conveniently access their AIS and TIS statements.

CONCLUSION:

In conclusion, understanding and utilizing the AIS and TIS statements are essential for effective tax planning and accurate income tax return filing. By accessing the AIS through Form 26AS and reviewing the TIS statement, taxpayers can ensure the accuracy of their tax information, reconcile their records, and stay compliant with tax laws. By leveraging these tools, taxpayers can have a comprehensive view of their tax-related information, optimize their tax compliance, and avoid any potential penalties or audits. Regularly checking the AIS and TIS statements allows taxpayers to stay informed, proactive, and in control of their tax affairs.