Income Tax: Are AIS and TIS the Booster Dose for Taxpayers?
Shivanand Pandit 11 November 2021
Tax terrorism is a known enemy of taxpayers of India. Tax disputes and assessments have instilled tremendous anxiety in the minds of the taxpayers.
 
Finally, the government recognised this fact and tried to simplify the tax processes by introducing annual information statement (AIS) and taxpayer information summary (TIS). 
 
AIS is an all-inclusive information for a taxpayer displayed in Form 26AS. TIS is a category-wise information summary for a taxpayer. Seemingly, AIS and TIS represent awareness over unawareness, while submitting the return of income.
 
Initially, as a tax credit statement of the taxpayer form 26AS was introduced. It  comprises details of advance tax paid, self-assessment tax paid, taxes deducted from the sources of income of taxpayers such as tax deducted at source (TDS) or tax collected at source (TCS), income-tax (I-T) refund received, if any, during the financial year. 
 
The Budget 2020 proposed to expand the mandate of form 26AS and make it more thorough with exhaustive data about the taxpayers’ tax profile. 
 
Accordingly, in May 2020, the I-T department had notified the new AIS iin form 26AS, effective 1 June 2020. All information given by banks and financial organisations was incorporated in the modified form.
 
Previously, these facts were included in their statement of financial transactions (SFTs). 
 
Once again, in October 2021, to expand the range of reportable matters under form 26AS, the central board of direct taxes (CBDT) released an order, as per the provisions of section 285BB of the I-T Act. 
 
The span of the form has been stretched to include eight new details of dealings, involving foreign remittances, income from dividend, purchase of mutual funds, purchase of securities, interest on I-T refund, off-market transactions, the complete division of salary and information from I-Tax return of another person. 
 
According to the statement of the I-T department, form 26AS will continue to be present on the TRACES portal until the new AIS is corroborated and is fully operational.
 
Helping Hand
 
Taxpayers can access or download new AIS by clicking on Annual Information Statement (AIS) under the ‘services’ tab on the new I-T e-filing portal (https://www.incometax.gov.in). 
 
If the taxpayer senses that the data is wrong or it relates to someone else or a different year or is a duplicate, etc, a facility has been offered to tender response online. In addition, the response can be given by submitting numerous details in bulk. 
 
An AIS utility has also been offered for taxpayers to see their AIS and upload their responses offline. The informed value and value after response will be revealed distinctly in the AIS. In case the information is altered or disapproved, the source of the information may be communicated for confirmation.
 
The variety of details that is made available in AIS and TIS exhibits how the tax department is preserving 360-degree data profiling of taxpayers. This data is not less than a birth chart plotting all financial transactions of taxpayers executed in the financial year. 
 
With the modified AIS, maximum details are now under the horizon of the I-T department. Moreover, the department has stated it also has access to data beyond what is being displayed in the AIS, which will aid tax officials to assess a taxpayer’s profile broadly and lessen the scope of evasion. 
 
Therefore, taxpayers should wisely scrutinise all transactions shown in the AIS, so that accurate data is then shown in their tax returns. They must properly make use of the feedback offered by the department and tweak all glitches before filing their tax returns. 
 
This will assist them to erase any duplicate or wrong details. If the taxpayer submits response on AIS after careful verification, the derived data in TIS will be spontaneously updated in real-time, and that information will be utilised for pre-filing of tax returns. Hence, taxpayers have been instructed to verify all connected information and to state extensive and precise information in their I-T returns.
 
If the taxpayer has already filed the I-T return and some facts have not been incorporated, the return may be revised to disclose the accurate information. 
 
The I-T department has mentioned that if there is a difference between the TDS or TCS information or the data of tax paid as displayed in form 26AS on the TRACES portal, and the TDS or TCS data or the details about tax payment as shown in AIS on the compliance portal, the taxpayer should trust the information revealed on the TRACES portal for filing their income-tax return (ITR) and for other tax compliance objects.
 
Both, AIS and TIS, are anticipated to be beneficial to taxpayers in providing particulars of all the dealings and help them to be ready in advance for required discussion with tax officers. Importantly, the move will bring more clarity and detail to the financial state of the assessees. On other hand, they also provide a complete facts database to the tax authorities in a single place. 
 
If implemented effectively, this initiative will construct a taxpayer-friendly regime and uphold the I-T department’s commitment as per taxpayers’ charter to consider the taxpayers as ‘honest’. This will also add power to the government’s endeavour of affording a seamless, painless and faceless tax administration.
 
(The writer is a tax specialist, financial adviser, guest faculty and public speaker based in Goa.) 
 
Comments
cvasantrao
4 hours ago
I have already filed my ITR before the AIS was released. I find some discrepancies in AIS. The interest on bank deposit has been shown twice and deduplication has not happened. What do I do about this?
krishan2k5
3 weeks ago
Some times the tax payer feels that a particular item should be TAX FREE or deductible from Income but the employer does not accept these facts and is not willing to amend Form 16, but options are available to the taxpayer? Does Income Tax department has a procedure to advise on such matters? Companies can obtain ADVANCE TAX RULING on certain issues, do we as taxpayers have similar facility ? Please advise.
panditgoa
Replied to krishan2k5 comment 3 weeks ago
If Form 16 does not permit you to avail of all the tax benefits, still you can avail them while filing the return of income. For example, if Form 16 displays less or no investment made to avoid tax, you can claim an eligible amount while submitting the IT return.
krishan2k5
Replied to panditgoa comment 3 weeks ago
Sir, thanks for your response. Specific issue in my daughters Income Tax case was that while she shifted from one job to another, both in Govt Medical Services, she was asked to return one month pay as per Appointment Letter issued whilest joining the job. We asked them to reduce this amount from the salary shown in Form 16. There are court rulings that if REFUND of money is done as per contract the deduction is allowed. But the department is not willing to modify Form 16. So she is paying tax on the PAY which actually has not been received. Such cases if referred to Income Tax authorities for RULING may help the Tax Payer. I was seeking advise on this matter.
panditgoa
Replied to krishan2k5 comment 3 weeks ago
Disclose the income on which you are supposed to pay tax.
r_ashok41
3 weeks ago
Still there are lot of doubts and discrepencies and it would be good if all these are sorted out before introduction and i feel puttingwhole salaried class into doubts giving something new and unfamiliar is not the right thing and should be implemented by giving a webinar and also some level of training to people and the local IT dept could have done some kind of meets for people in batches so that their queries could be heard.Now it looks like everyone has to go to a tax consultant to file their returns which is not easy for a senior citizens and who do not have much means of income
panditgoa
Replied to r_ashok41 comment 3 weeks ago
There are numerous writeups and materials on how to use AIS and TIS. They definitely train the taxpayers. However, it is advisable to consult tax advisors as far as one's tax planning and compliance is concerned like we consult dentists for dental problems or architects for designing/redesigning spaces of our home. Nowadays many tax experts provide online services so that senior citizens or differently-abled people can access them.
sachinasher2004
3 weeks ago
There are too many discrepancies on AIS.

For example, depositories are not even able to differentiate between short term and long term assets... I had some shares in my demat account for a few years and I sold these last year. NSDL has reported these are short-term assets in spite of the fact that the shares were in the same account for a few years.
panditgoa
Replied to sachinasher2004 comment 3 weeks ago
You can submit a request for rectification of mistakes. Kindly do it or consult the tax advisor to do so.
anant.9196
3 weeks ago
Looks like a proactive move. But like everything else time and implementation will show if this indeed makes the Tax dept more customer oriented!
panditgoa
Replied to anant.9196 comment 3 weeks ago
True. If implemented effectively, this initiative will construct a taxpayer-friendly regime.
r_ashok41
3 weeks ago
AIS is more exhaustive than 26AS and which one should we use to file .Mistakes in the AIS especially with respect to delisting of a company how does one deal with it.Also Losses incurred with respect to NCD say of DHFL how does one report it or capture it
panditgoa
Replied to r_ashok41 comment 3 weeks ago
If details are not available in AIS, taxpayers can disclose them under appropriate heads of income.
drneerajm
Replied to panditgoa comment 11 hours ago
As per DP report price of delisted shares are shown as Rs 1 or 5 for Geetanjali gems and DHFL ...price of acquisition should be taken for calculating losses and not the price at the time of delisting...How should I get it rectified in DP and AIS Sir?
govindwattal
3 weeks ago
If a mutual fund uploads wrong data or doesnt upload data at all, Is it the tax payers job to correct govt records? What penalty will be imposehad on the reporting entities for innacurate data ? In my case one MF has not uploaded data.

What is the last date for the reporting entity to upload the records? When do we know that the "position " is final?





panditgoa
Replied to govindwattal comment 3 weeks ago
Taxpayers should check the information displayed in AIS/TIS carefully. Whether it is their job or not, who will impose a penalty for AMCs is debatable. Taxpayers have to report deviations or mistakes before filing the return of income. As per the IT Department mistakes will be rectified in real-time and taxpayers will be informed accordingly.
govindwattal
Replied to panditgoa comment 3 weeks ago
If wishes were horses, beggars would ride. Have been seeing this "simplification" for some time now.
panditgoa
Replied to govindwattal comment 3 weeks ago
Raise the flag. Protest.
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