The 26AS form previously contained details about income, tax deducted at source (TDS), etc. This made it easier to file an income tax return (ITR). According to new tax guidelines, the annual information statement (AIS) is now divided into three sections. They are the AIS, TIS and statement of financial transaction (SFT). There can be various income figures under a given head of income in all three sections, so this can be very confusing at times. In order to avoid receiving a tax notice, how can I ensure there are no errors in my ITR?
Form 26AS functions as an annual tax statement that presents information about Tax Deducted at Source (TDS), Tax Collected at Source (TCS), and the associated income for which these deductions were made. These details are sourced from statements submitted by TDS/TCS deductors or collectors. Additionally, Form 26AS highlights data like refunds issued, property acquisitions, substantial investments, etc., over a fiscal year.
The Annual Information Statement (AIS) provides an extensive overview of a taxpayer's details found in Form 26AS. Apart from TDS and TCS information along with their corresponding income, the AIS encompasses information derived from Statement of Financial Transactions (SFT). This SFT information, provided by reporting entities, covers interest from savings, deposits, dividends, received rent, securities' buying/selling, mutual fund transactions, diverse payments like credit card usage, foreign remittances, tax payments, refunds, etc. Thus, AIS might include supplementary information not present in Form 26AS. Any discrepancies can be reported by taxpayers through the established procedure.
Taxpayer Information Summary (TIS) is a summarized version of AIS, categorized into sections such as salary, interest, dividend, etc.
In cases of differences between TDS/TCS amounts in Form 26AS and AIS, taxpayers are advised to rely on Form 26AS for tax return purposes. In scenarios where financial documents and Form 26AS, AIS, or TIS do not align, offering feedback on AIS information online is recommended to reconcile these disparities. If Form 26AS deviates from a taxpayer's records, it's advisable to inform the deductor for necessary corrections.
While filing individual tax returns, it's essential to cross-reference data from Form 26AS, AIS, and TIS with personal documents (e.g., bank statements, portfolios, broker statements, tax deduction certificates, etc.). Filing taxes accurately requires using the correct information and financial data available to the taxpayer. Should the tax department raise any queries, these documents will be crucial in explaining claims or addressing concerns in the tax return form.