Annual Information Statement (AIS) & Taxpayer Information Summary (TIS): The Tax Department Knows More Than You Think
- shubhamtulsian05
- 1 hour ago
- 4 min read
When the income tax department introduced the Annual Information Statement (AIS) in November 2021, it marked a watershed moment in Indian tax administration. For the first time, taxpayers could see — in a single, consolidated document — precisely what financial information the department already possessed about them. The answer, for most people, was: far more than they expected.
What is the AIS?
The Annual Information Statement is a comprehensive financial data statement available on the income tax portal under 'Services → Annual Information Statement'. It aggregates data from multiple sources — banks, registrars, stock exchanges, mutual fund houses, employers, foreign institutions — and presents it linked to your PAN. It replaced the older Form 26AS (which continues in a modified form but is now largely subsumed by the AIS).
What Information Does the AIS Capture?
Salary and TDS income: Salary, professional fees, interest, dividends, and other TDS-deducted payments — exactly matching Form 26AS TDS data.
Interest income: Savings account interest, FD interest, recurring deposit interest — reported by banks directly to the department under Section 285BA Statement of Financial Transactions (SFT).
Dividend income: Dividends from shares and mutual funds — reported by companies and fund houses.
Capital gains: Sale of securities (shares, mutual funds, bonds) — reported by depositories, brokers, and mutual fund RTAs. Includes purchase cost information where available.
Property transactions: Purchase and sale of immovable property — reported by Sub-Registrars from property registration data. The stamp duty value and consideration are both captured.
Mutual fund transactions: Purchases, redemptions, switches — reported by mutual fund RTAs (CAMS and KFintech).
Foreign remittances: LRS remittances — reported by authorised dealer banks. This includes overseas education payments, travel bookings, and investment transfers.
Foreign income (FATCA/CRS): Income received from foreign sources reported through international information exchange agreements — this data is increasingly being integrated into AIS.
Cash deposits and withdrawals: High-value cash transactions above prescribed thresholds reported by banks.
GST turnover: For GST-registered businesses, the declared GST turnover is now incorporated — allowing cross-verification with income tax return business income.
What is the TIS?
The Taxpayer Information Summary (TIS) is a simplified version of the AIS — it categorises and aggregates AIS data by income type (salary, interest, dividends, capital gains, etc.) and shows two figures for each: the 'processed value' (what the system has computed as your income from that source) and the 'derived value' (adjusted for any feedback you have submitted on the AIS). The TIS is what is primarily used for pre-filling your ITR.
How to Use AIS Before Filing Your ITR
Step 1 — Download AIS: Log in to incometax.gov.in → Services → Annual Information Statement → Download Full AIS (JSON or PDF format). Download both Part 1 (general information) and Part 2 (financial transactions).
Step 2 — Review each category: Go through every income category — salary, interest, dividends, capital gains, property. Compare each entry against your own records (salary slips, bank statements, broker statements, property documents).
Step 3 — Submit feedback on errors: If any entry is incorrect (wrong amount, duplicated, doesn't belong to you, or has a data entry error), submit feedback directly on the AIS portal against that specific entry. Options include 'Income is not taxable', 'Income is overstated', 'Income is understated', or 'Duplicate information'.
Step 4 — File ITR after reconciliation: Ensure your ITR reflects all income shown in AIS (including income you might have missed). Any income in AIS not reported in your ITR is a potential notice trigger.
Common AIS Errors and How to Address Them
Duplicate entries: The same transaction sometimes appears twice — once from the bank's SFT report and again from the employer's TDS return. Flag as 'Duplicate Information' in AIS feedback.
Wrong PAN linkage: Transactions belonging to someone else with a similar name or a data entry error in PAN by a third party may appear in your AIS. Flag as 'Information is not as per taxpayer' with an explanation.
Property purchase at stamp duty value vs actual: AIS often shows the stamp duty value of a property purchase, which may differ from the actual consideration. Ensure your ITR reflects the correct figures and submit feedback if AIS data is inaccurate.
Mutual fund redemptions — gross vs net: AIS shows gross redemption value; your actual capital gain depends on purchase cost. Don't assume the AIS figure is your taxable income — compute the actual gain using purchase NAV and redemption NAV.
Why Matching AIS Before Filing Is Now Non-Negotiable
The income tax department's processing systems now routinely compare filed ITRs against AIS data. Any significant unexplained discrepancy — income in AIS not reported in ITR, or amounts differing by more than a threshold — triggers an automated notice under Section 143(1)(a) or even a Section 148A preliminary inquiry. Reviewing and reconciling AIS before filing is no longer just good practice; it is an essential step that directly affects whether your return is processed smoothly or triggers follow-up action.
How PGT & Associates Can Help
PGT & Associates assists clients in downloading and reviewing their AIS, reconciling AIS data with personal financial records, submitting corrections through the AIS feedback mechanism, and ensuring ITR reflects complete and accurate income across all sources. Contact us at +91-87994-99189.
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