Understanding the Annual Information Statement: A Detailed Guide

Annual Information Statement: The AIS is basically a tool in an income tax portal that provides comprehensive information about the income received and transactions carried out by the taxpayer in a particular financial year from various sources. This information is available in the annual information statement or AIS and can be accessed by taxpayers from the income tax portal. Here is a look at income categories that reflect in the AIS.
AIS is the government’s new step that will replace form 26AS in the future. AIS is a Detailed form whereas 26AS is a brief description. So while filing an income tax return one has to be very careful as all the details are already available with the department.

INCOME FROM SALARY

AIS (Annual Information Statement) will provide the complete details about the salary amount earned by the taxpayer along with the TDS means tax deducted by the employer, if any including the TAN of the employer and PAN of employee. The Gross salary including all exempt allowances will be reflect in AIS.

RENTAL INCOME

AIS will also show Rental income received by an Assessee in the following cases

• If the taxpayer is receiving rent of Rs 50,000/- or more per month;
• If the taxpayer has given the PAN to his tenant and his tenant has given PAN to his employer to claim HRA exemption from salary.
• If the taxpayer has received rent from land, building, machinery etc. where TDS has been deducted at the rate of 10% by the tenant.

As per the new income tax portal, the information of any rent received by the taxpayer will be summed up at PAN level. And the employer is liable to report the PAN of the landlord to whom rent is paid by an employee in Annexure II of the TDS statement/return. The sum of rent received by the taxpayer from all tenants (in case of rent received from more than one tenant) will be reflected in the Taxpayer Information Summary.

DIVIDEND INCOME

Dividends received by the taxpayer will also reflect in AIS from equity shares, and mutual funds. Further, tax deducted by the companies on such dividends, and mutual funds will also be reflected in the AIS.

INTEREST FROM SAVINGS BANK

Any Interest paid or credited or accrued on a savings account held by the taxpayer during the financial year will be reported in the AIS. Do keep in mind that interest earned from savings accounts is taxable. However, taxpayers are allowed to claim a deduction of up to Rs 10,000/- under section 80TTA except for senior citizens and super citizens.

INTEREST FROM DEPOSITS

If Interest is earned by the taxpayers from deposits like fixed deposits and recurring deposits. If any tax has been deducted, then it will be reflected as well in the AIS. Reporting entities, like banks, inform the income tax department about the interest paid/credited/accrued on fixed deposits and recurring deposits. Reporting entities include banks, post offices, etc. Interest from FD and RD is fully taxable. However, senior citizens and super senior citizens can claim a deduction of Rs 50,000/- under section 80TTB.

INTEREST FROM OTHER SOURCES

If the taxpayer has received the interest from other than a savings account, term deposits, recurring deposits, etc. then such interest details will be reported to the income tax department by the paying entity. This interest income earned from other sources will also be reflected in the taxpayer’s AIS.

Note:” This document has been written to provide an update in simple/ lucid language. The Author shall not be responsible for any decision made based on the content of this document. Care has been taken to produce authentic and reliable information however the users are expected to obtain professional advice before implementing.