ITR filing: What is AIS and how it helps you file your income tax return accurately

Income Tax Return: Filing an Income Tax Return (ITR) is an important obligation for every taxpayer in India. It allows them to report income, claim deductions, and pay any pending taxes. The Annual Information Statement (AIS) has been introduced to ensure transparency and accountability in the process.

Here's everything you need to know about AIS and its importance —

What is AIS?

The Annual Information Statement (AIS) offers comprehensive details about a taxpayer for a specific financial year, including income, financial transactions and tax information. Taxpayers can view their AIS data and respond if necessary by logging into their income-tax e-filing account.

Before filing income tax returns, cross-check all the reported income in Form 26AS and Annual Information Statement (AIS) to avoid errors.

What does AIS consist of?

AIS includes information on details such as –

• Income information: salaries, interest income, dividends, etc.
• Tax information: TDS, TCS, GST returns other tax-related payments.
• Other taxable transactions, such as remittances, off-market transactions, etc.

Why is AIS important?

AIS gives a comprehensive snapshot of income and other financial transactions. It reflects financial transactions impacting the taxable income of an individual. 

According to Balwant Jain, tax and investment expert, AIS tries to ensure tax compliance as all transactions listed in it must be appropriately incorporated when filing income tax returns, maintaining transparency and accuracy. It further helps taxpayers provide accurate taxable information while filing ITRs to avoid penalties in future.

Even if the income reported in AIS is incorrect, the income tax portal has a mechanism to flag such errors.

How to check AIS?

Step 1: Go to the official website of the Income Tax Department at www.incometax.gov.in and log in.

Step 2: Select the Annual Information Statement (AIS) menu displayed on the dashboard.

Step 3: Click on the Proceed tab and you will redirected to the AIS portal, then click on the AIS tile to view the Annual Information Statement.

Another way to view AIS is —

Step 1: Log in to the URL https://www.incometax.gov.in/.

Step 2: Click on the e-File menu displayed on the homepage.

Step 3: Select Income Tax Return, then View AIS.

Step 4: Click the Proceed button to be redirected to the AIS portal, then select the AIS tile to view the Annual Information Statement.

Disclaimer: This article is for informational purposes only and does not constitute legal or tax advice. Taxpayers are advised to consult a qualified tax professional or refer to the official website of the Income Tax Department for accurate and up-to-date guidance before filing their returns.