Annual information statement (AIS) is a complete statement restraining details of 44 financial transactions (income, investment, expenditure) undertaken in a financial year. AIS is an information statement; it provides all the income received from numerous origins irrespective of whether tax has been subtracted on such income or not. Further, any investments made will be affected in the AIS as well.
Here are the 44 financial transactions tracked via AIS:
Salary AIS will show details about the salary amount paid to you along with the tax subtracted if any. In addition, it will show the TAN of the employer and the PAN of the employee. The amount indicated in the AIS will be gross salary, including all exempt allowances. The individual will be required to claim exemption and deductions as applicable while filing an income tax return (ITR).
Rent received This section includes rent received from various services. This involves:
If you have given your PAN to your tenant, he has given PAN to his employer to claim HRA exemption.
If you are receiving rent Rs. 50,000 or more per month.
If you have obtained rent from land, building, machinery etc. where TDS have been deducted at the rate of 10%.
As per the income tax, information for rent received will be summed up at PAN level. Similarly, the employer reports the PAN of the landlord to whom rent is paid by an employee of the TDS statement. The sum of rent collected from all tenants will be review in the Taxpayer Information System (TIS).
Balance in amount Opening of account other than a savings account or fixed deposits will be shown in AIS. Further, bank accounts with a balance exceeding Rs. 50,000 at the closing of the financial year will be affected in AIS.
Cash deposits Cash deposits made in current accounts will be considered in AIS. Also, cash deposits made in other accounts described by financial entities, acquired under income tax law, will be evaluated in AIS. Form 61A has to be filed by the reporting agency that includes a bank, co-operative bank, post office, NBFC etc.
Cash withdrawals Cash withdrawals made from current accounts will be considered in AIS. Also, cash withdrawals from other accounts described by financial entities such as a bank, co-operative bank, post office etc., directed to so under income tax law will be reflected in AIS.
Credit/ debit card Any credit/ debit card issued to you throughout the financial year will be collected in AIS.
Dividend It will show dividends acquired by you from equity shares, mutual funds. Further, tax deducted by the firms, mutual fund houses will also be considered in the AIS. Dividend income will be listed on the ground of PAN of the reportee, data source and value.
Interest from saving banks Interest paid, credited or accrued on savings account held by you throughout the financial year is reported in the AIS. However, you are permitted to assert deduction of up to rs. 10,000 under section 80TTA excluding senior citizens and super citizens.
Purchase of time depositsIf you have made any investments in time deposits (such as bank fixed deposits), then such investments will be reviewed in AIS. Reporting entity involves bank, NBFC, post office etc.
Interest from deposits This section includes interest accepted by individuals from various deposits like fixed deposits, like fixed deposits, recurring deposits. If any tax has been deducted, then it will be reviewed as well. Reporting entities, such as banks notify the income tax department about the interest paid/ credited/ accrued on fixed deposits and recurring deposits. Reporting entities comprise banks, post office etc.
Purchase of securities and units and mutual funds Buying of shares, bonds, mutual fund units etc. will be considered in AIS. Information pertaining to purchase of mutual funds is reported to the income tax department by the AMC.
Sale of securities of units and mutual fund Registrar and transfer agents (RTAs) and depositories outlines sale transactions based on PAN, name and other details etc. of an individual to the income tax department. The capital gains accrued from the sale of units of mutual funds will be analyzed on the basis of holding period. The capital gains will be considered in the AIS.
Interest from other sources If you have obtained the interest from sources other than saving account, term deposits, recurring deposits, and then such interest information will be described to the income tax department by the paying entity. This interest income obtained from these other sources will also be listed in your AIS.
Cash payments Cash payments made for goods and services, purchase of bank drafts or pay orders or banker’s cheque, prepaid instruments in cash, bullion and jewelry etc. will be considered in AIS, wherever these payments are made to the reporting entity as directed under the law.
Receipt of accumulated balance of PF from employer u/s 111 If you have withdrawn from provident fund account or have obtained accumulated balance from your employer, then the amount received will be reflected in the AIS.
Receipts from life insurance policy Receipts from life insurance policy are cleared from tax under section 10(10D), provided definite conditions are met. If the conditions are not met, then receipt will be taxable, and TDS will be deducted as well.
Withdrawal of deposits from national savings scheme National saving scheme is also known as post office savings scheme. Money obtained from these schemes, either prematurely withdrawn or at the time of maturity, will be reflected in the AIS.
Interest from income tax refund The income tax department pays interest on the income tax refund amount. The interest is computed at the rate of 0.5% per month.
Purchase of foreign currency Foreign currency purchased for the buying of equity shares, debt instruments, real estate etc. Or opening of bank account abroad or for travel for pilgrimage, medical treatment, education etc. will be considered in the AIS.
Rent payments AIS will not only show the rent obtained by you but also rent payments made by you, provided tax has been deducted at the time of making payment.
Foreign travel Purchasing of overseas tour package or payment made in connection with foreign travel is considered in the AIS.
Purchase of immovable property Throughout the financial year, if you have bought any immovable property such as house, land building etc. then such purchase will be reflected in AIS.
Receipts from transfer of immovable property The amount obtained from sale of immovable property such as house etc. will be reviewed in the AIS. The data will be sourced from form 26QB as reported by the buyer. Form 16B will be provided to the seller for the tax deducted on the amount paid to him/her.
Receipt of foreign remittance Any payment obtained by non-residents related to royalty or fees for technical services etc. will be reviewed in AIS.
Rent from plant and machinery If you are obtaining rent from plant and machinery, where tax has been deducted at the rate of two per cent, then such data will be reflected in the AIS as well.
Winnings from lottery and horse race u/s 115BB Winnings from lottery/ crossword and any tax deducted on it will be considered in the AIS. At the time of making payment to the winner of the lottery etc. payer will be essential to deduct tax at the application etc. Winning from horse race will also be reflected in the AIS.
Interest from infrastructure debt fund Interest obtained from investment made in infrastructure debt fund will be considered in the AIS. Tax will be deducted at the time of receiving interest payment from infrastructure debt fund.
Income from specified company by a non-resident As a non-resident, if you obtain interest from stated company under the law, then the amount obtained will be considered in AIS. Further, any tax deducted at the time of making the payment will be reflected as well.
Interest from specified company by a non-resident As a non-resident, if you receive interest from stated company under the specified under section 115, then interest obtained will be shown in the AIS.
Income and long-term capital gain from foreign currency bonds or share of Indian companies Interest from an Indian company or dividends from global depository receipts as stated under section 115AC of the Income tax Act, as obtained by a non-resident, will be shown in AIS.
Insurance commission Insurance commission obtained from selling of insurance policy will be shown in AIS.
Receipt of commission etc. on sale of lottery tickets AIS also show the amount of commission obtained from sale of lottery tickets. The amount of commission paid is reported by payer of commission via Form 26Q.
Sale of land or building Any amount obtained from the sale of land or building will be considered in the AIS. The amount reported in the AIS will be taken from form 26QB. This is the TDS return form filed by the buyer of the property after deducting tax on the sale contemplation paid to the seller.
Receipt of commission etc. on sale of lottery tickets AIS also show the amount of commission obtained from sale of lottery tickets. The amount of commission paid is reported by payer of commission via Form 26Q.
Off-market debit/ credit transactions The depository and registrar and transfer agents (RTAs) will be needed to submit details of off-market transactions (of shares, other securities) to be essential in AIS. Off- market transactions include gifting of shares, mutual funds, transmission due to death of first holder etc. Off-market credit transaction will also be reflected in AIS.
Business receipts Receipts related to business income will be reflected in the AIS. The particulars here include receipts from contract payments, as reported in form 26Q, fees for professional or technical services, any other commission or brokerage obtained as reported in form 26QD.
Business expenses Any expenses incurred in managing business are also considered in AIS. Expenses that will be shown here are, purchase of alcoholic liquor, timber acquired under forest lease or from any other mode, scrap, commission or brokerage paid, payment for professional services etc.
Miscellaneous payments The miscellaneous payments include –payment made for contact, purchase of bank drafts or pay orders, payment to hotel, life insurance premium, credit card etc. These payments would be reported by the unit receiving the payment subject to reporting requirements under income tax laws.
Purchase of vehicle Purchase of a vehicle where tax has been collected from purchaser at time of buying will be considered in AIS.
Income distributed by business trust Income from units of business trust which is reported by payer in form 27Q is shown in the recipient’s AIS.
Income distributed by investment fund Income from units of investment fund as reported by payer in form 26Q is shown in AIS of the recipient of the income.
Income from investment in securitization trust Income from investment made in securitization trust is subject to tax deduction at source. The payer reports such details in form 26Q on a quarterly basis.
Sale of vehicle Amount obtained from the sale of vehicle will be shown in the AIS of the seller.
Payment to non-resident sportsmen or sports association under section 115BBA If any non-resident sportsmen or sports association receives income from participating in any game in India then such amount obtained will be shown in AIS of the recipient of the income.
At AJSH, we assist our clients in dealing with various income tax compliances, including income tax assessments, TDS returns, tax advisory and other related services by providing them with adequate support and guidance from our end. If you have any questions or wish to know more about these financial transactions, kindly contact us.
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