The Annual Information Statement serves as a crucial record offering the summary of an individual’s financial activities throughout the year. By highlighting income or deduction discrepancies, it enables taxpayers to make necessary corrections before submitting their income tax returns. It contains all the financial transactions that the individual has undertaken in the previous year. Today we will discuss AIS and its importance.
Meaning Of AIS
AIS is a consolidated statement provided by the income tax department. It helps in finding out the high-valued transaction undertaken in the financial year. AIS is similar to “Form-26AS” but has a more detailed version. It is designed to provide more detailed information regarding your financial transactions.
Importance Of AIS
The annual Information Statement is a very important document because:
- It provides an overview of all the financial transactions during the financial year.
- It aids the taxpayer to find any discrepancy in income and deductions.
- It helps to rectify the above discrepancies.
- It encourages taxpayers to report their income accurately.
- It helps to prevent tax evasion by providing details about high-valued transactions.
- It improves tax compliance
- Checking AIS helps in avoiding penalties
Contents Of AIS
The Annual Information Statement provides the following financial information:
- Tax Deducted at Source
- Tax Collected at Source
- Specified Financial Transaction
- Tax Payments
- Pending or Completed Processing
All this information helps the taxpayer to verify their income and the tax paid by them. This ensures accurate filing. Taxpayers can view all this information on the e-filing portal of the income tax department.
Also Read: Your Checklist For ITR Filing
Steps To Access AIS
We can straightaway download AIS from the income tax filing portal. The steps to access the annual information statement are as follows:-
- Go to the official e-filing site
- Log in with your credentials
- Go to the services tab
- Select the AIS Option
This document is usually updated every quarter. You can either download the document or view it online in HTML format.
In conclusion, AIS is a valuable tool for tax filing as it gives a comprehensive overview of all your transactions done in the financial year. It helps in a better understanding of one’s tax liability and better tax planning. Apart from that, it also helps in identifying tax-saving opportunities and better investment decisions. By properly studying and utilizing the AIS, we can make our tax planning more efficient and streamlined. Along with it, it also ensures compliance with the tax laws.
For gaining more information on AIS and its application in tax saving, contact our tax experts at FileMyReturn today.