Previously, one could easily find details of income, tax deducted at source (TDS), etc., in the 26AS form and this aided the filing of income tax return (ITR). However, the tax department has now trifurcated the annual information statement (AIS) into three sections—AIS, taxpayer information summary (TIS) and statement of financial transaction (SFT). Sometimes, this is very confusing as all three sections can have different figures under a particular income head. How do I ensure that there are no errors in filing the ITR and avoid attracting a tax notice?
—Dilip Saxena
Form 26AS is an annual tax statement which primarily provides details of TDS, and tax collected at source (TCS), along with the corresponding income against which such deduction has been done. These are on the basis of the details given by deductors or collectors of TDS or TCS in the statements filed by them. Further it also displays details of paid refunds, property purchases, high value investments, etc., during a financial year.
AIS provides a comprehensive view of information for a taxpayer displayed in Form 26AS. In addition to information relating to TDS and TCS and corresponding income, the AIS includes SFT information (based on information received from reporting entities) relating to interest on savings, deposits, dividend, rent received, purchase and sale transactions of securities, mutual fund transactions, miscellaneous payments such as credit cards, foreign remittances, tax payments, refunds etc. Hence, there may be additional information in AIS, which may not be reflecting in your form 26AS. In case of any deviation in amounts with the taxpayer’s actual records and transactions, a taxpayer can provide feedback on information displayed in AIS through the prescribed process.
TIS is largely a summarized version of information in the AIS that is given category wise such as salary, interest, dividend, etc.
The AIS form specifies that in case of any variation in the TDS and TCS amounts between Form 26AS and AIS, the taxpayer may reply on information in 26AS for the tax returns. In case of any variation between the taxpayer’s financial documents and Form 26AS and AIS or TIS, it is advisable to provide online feedback on the information displayed in AIS, to reconcile the same with the records. In case of deviation in form 26AS from the taxpayer’s records, the deductor may also be informed to make necessary corrections in their filings.
For the purpose of filing of individual tax return, one should always reconcile the data appearing in Form 26AS, AIS and TIS with the individual documents and records (such as bank statements, portfolios, broker statements, tax deduction certificates, etc.). The tax return should be filed on the basis of all correct information and the financial data available with the taxpayer. In case of any queries raised by tax department, such documents would be required to explain any queries or claims made in the tax return form.
Parizad Sirwalla is partner and head, global mobility services, tax, KPMG in India.
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Updated: 30 Jul 2023, 11:04 PM IST