1 / 7ITR filing: The Annual Information Statement (AIS) is a comprehensive statement that consolidates various financial transactions carried out by an individual during a financial year. It includes details of income earned, investments made, and taxes paid, among other financial activities.
2 / 7ITR filing: The AIS is divided into several parts. Part A contains general information such as the taxpayer's basic details, including name, PAN, and Aadhaar number, along with the financial year to which the AIS is applicable.
3 / 7ITR filing: Part B of AIS is the information summary, which includes details of tax deducted at source (TDS) and tax collected at source (TCS) from various incomes like salary, interest, and dividends. It also includes the Statement of Financial Transactions (SFT), which encompasses high-value transactions such as large deposits, credit card payments, and property purchases. Additionally, Part B provides information on self-assessment tax, advance tax, and other tax payments made by the taxpayer, as well as any tax demands raised or refunds issued during the financial year.
4 / 7ITR filing: To access the AIS, taxpayers need to visit the Income Tax Department's e-filing portal and log in using their credentials (PAN/Aadhaar and password). Once logged in, they should navigate to the 'Services' section and select 'Annual Information Statement (AIS)'. The AIS can be viewed and downloaded in PDF format, which is advisable for future reference.
5 / 7ITR filing: When reading and utilising the AIS for ITR filing, taxpayers should first verify their personal information to ensure it is correct. They should then cross-check the income details in the AIS with their records, including salary, interest income, dividends, and capital gains, to ensure all income sources are accurately reported. It is important to verify the TDS/TCS credits reported in the AIS against Form 26AS and other TDS certificates to ensure all tax deductions are correctly accounted for.
6 / 7ITR filing: Taxpayers should also review the SFT information to confirm that all high-value transactions are accurately reported, ensuring there are no discrepancies in their financial transactions. Additionally, they should verify the details of any advance tax, self-assessment tax, or other tax payments made during the year, and reconcile any tax demands raised or refunds issued with their records.
7 / 7ITR filing: Common issues that taxpayers may encounter include discrepancies in income reporting, missing TDS credits, and incorrect SFT reporting. If discrepancies in income reporting are found, they should be rectified before filing the ITR. For missing TDS credits, taxpayers should ensure that their PAN is correctly mentioned in the TDS certificates issued by the deductor. If high-value transactions are incorrectly reported, taxpayers should contact the financial institution that reported the transaction to rectify it.
