What is the story about?
With the July 31 deadline for filing income tax returns (ITR) for many individual taxpayers drawing closer, tax experts say reviewing the Annual Information Statement (AIS) before starting the filing process can help minimise errors and ensure all taxable income is reported correctly.
The AIS, available on the Income Tax Department's portal, provides a consolidated view of financial information reported by banks, employers, mutual funds, stock brokers and other institutions during the financial year.
Unlike Form 26AS, which primarily captures tax credits such as TDS and TCS, AIS includes a wider range of financial transactions.
What does AIS contain?
According to CA Ruchika Bhagat, Managing Director, Neeraj Bhagat & Co., a firm of Chartered Accountants (CA) and corporate financial advisors, the AIS includes details such as salary income, bank interest, dividend income, securities transactions, mutual fund investments, foreign remittances, property transactions and other specified high-value financial dealings reported to the Income Tax Department.
Reviewing this information before filing an ITR helps taxpayers ensure that all sources of income have been disclosed correctly and reduces the chances of omissions.
Why experts recommend checking AIS first
Sonam Chandwani, Managing Partner, KS Legal & Associates, a full-service boutique law firm, said the AIS should be the first document taxpayers review before filing their income tax return because it acts as a consolidated record of financial information available with the Income Tax Department.
According to Chandwani, taxpayers should use the statement to reconcile details such as salary, interest income, dividends, securities transactions, tax deducted at source (TDS) and other reported financial transactions with their own records. Doing so can help identify omissions, inconsistencies or reporting errors before the return is filed.
She added that if any discrepancy is noticed, taxpayers should first seek clarification or correction from the reporting entity and ensure the return reflects accurate and substantiated information instead of relying solely on auto-populated data.
How reviewing AIS can help
Bhagat noted that checking the AIS before filing can help taxpayers avoid common mistakes such as:
Since the department compares the information reported in an ITR with the data available in AIS, mismatches could lead to tax notices, additional scrutiny or delays in processing refunds, she said.
Can taxpayers report errors in AIS?
Yes. Experts point out that taxpayers can submit feedback through the AIS if any transaction appears incorrect, duplicated or does not belong to them. Raising such discrepancies before filing the return can help avoid future compliance issues.
They also recommend reconciling the AIS with Form 26AS, salary statements, bank account records and investment documents before submitting the return.
The AIS, available on the Income Tax Department's portal, provides a consolidated view of financial information reported by banks, employers, mutual funds, stock brokers and other institutions during the financial year.
Unlike Form 26AS, which primarily captures tax credits such as TDS and TCS, AIS includes a wider range of financial transactions.
What does AIS contain?
According to CA Ruchika Bhagat, Managing Director, Neeraj Bhagat & Co., a firm of Chartered Accountants (CA) and corporate financial advisors, the AIS includes details such as salary income, bank interest, dividend income, securities transactions, mutual fund investments, foreign remittances, property transactions and other specified high-value financial dealings reported to the Income Tax Department.
Reviewing this information before filing an ITR helps taxpayers ensure that all sources of income have been disclosed correctly and reduces the chances of omissions.
Why experts recommend checking AIS first
Sonam Chandwani, Managing Partner, KS Legal & Associates, a full-service boutique law firm, said the AIS should be the first document taxpayers review before filing their income tax return because it acts as a consolidated record of financial information available with the Income Tax Department.
According to Chandwani, taxpayers should use the statement to reconcile details such as salary, interest income, dividends, securities transactions, tax deducted at source (TDS) and other reported financial transactions with their own records. Doing so can help identify omissions, inconsistencies or reporting errors before the return is filed.
She added that if any discrepancy is noticed, taxpayers should first seek clarification or correction from the reporting entity and ensure the return reflects accurate and substantiated information instead of relying solely on auto-populated data.
How reviewing AIS can help
Bhagat noted that checking the AIS before filing can help taxpayers avoid common mistakes such as:
- Missing interest income from savings accounts or fixed deposits.
- Forgetting to report capital gains from shares or mutual fund transactions.
- Omitting other taxable receipts reflected in the Income Tax Department's records.
Since the department compares the information reported in an ITR with the data available in AIS, mismatches could lead to tax notices, additional scrutiny or delays in processing refunds, she said.
Can taxpayers report errors in AIS?
Yes. Experts point out that taxpayers can submit feedback through the AIS if any transaction appears incorrect, duplicated or does not belong to them. Raising such discrepancies before filing the return can help avoid future compliance issues.
They also recommend reconciling the AIS with Form 26AS, salary statements, bank account records and investment documents before submitting the return.
