Demonetisation Deposit ITAT India
Tax rules and filing guide
Expert brief on Demonetisation Deposit ITAT India for businesses, promoters, and individuals. Reconcile with latest notifications before filing.
Post Your Requirement - FreeThe Role of AIS and TIS in Income Tax Filing
The Annual Information Statement (AIS) is a comprehensive portal-generated document that shows all financial transactions undertaken by a taxpayer during the financial year. The Taxpayer Information Summary (TIS) aggregates these details into category-wise summaries for easy entry in your Income Tax Return (ITR).
Why You Must Wait for the May 31st Update
- TDS/TCS Filing Deadline: Deductors (employers, banks, mutual funds) are legally required to file their Q4 TDS returns by May 31st.
- AIS Sync Period: The Income Tax Department processes these filings and updates your AIS/TIS in the first week of June.
- Risk of Early Filing: Filing your ITR in April or May before the AIS is fully updated often results in omitting bank interest, dividend payments, or capital gains, triggering automated mismatch notices.
Form 26AS vs. AIS/TIS Reconciliation
Reconciling your financial statements is mandatory to ensure complete reporting and avoid tax audits:
- Form 26AS Scope: Shows only taxes deducted or collected at source (TDS/TCS) and self-assessment/advance tax payments.
- AIS Scope: Shows all financial transactions, including interest from savings accounts, dividends, sale of mutual funds/shares, foreign remittances, and purchase of property, regardless of whether tax was deducted.
- Feedback Mechanism: If any transaction in your AIS is incorrect, you must submit online feedback (e.g. "Information relates to other taxpayer" or "Information is duplicate") to update the TIS processed value.
Frequently Asked Questions
1. What is the difference between Form 26AS and AIS?
Form 26AS primarily displays details of TDS, TCS, tax payments (advance tax, self-assessment tax), and high-value transactions. AIS (Annual Information Statement) is a comprehensive profile containing all financial transactions like savings interest, dividends, mutual fund purchases/redemptions, stock transactions, and foreign remittances, regardless of whether TDS was deducted.
2. Why should I wait for the AIS to be updated before filing my ITR?
Employers, banks, and financial institutions file their quarterly TDS/TCS returns by May 31st. Consequently, the AIS and Form 26AS are fully updated with all interest, salary, and tax details only in the first week of June. Filing before this update may cause mismatches, leading to automated tax notices under Section 143(1).
3. What is the Taxpayer Information Summary (TIS)?
TIS is a simplified, one-page summary that aggregates the transaction details shown in the AIS category-wise. It shows the original value and the processed value (after feedback), which you can use directly to pre-fill and verify your ITR.
4. How do I download my AIS and TIS?
Log in to the Income Tax e-filing portal, go to the 'Services' tab, select 'Annual Information Statement (AIS)', click 'Proceed' to redirect to the AIS portal, and download the AIS and TIS in PDF or JSON format.
5. What should I do if there is an error in my AIS?
If a transaction in your AIS is incorrect, duplicated, or belongs to someone else, you can submit online feedback on the AIS portal. Select the transaction, click 'Feedback', and choose the appropriate option (e.g., 'Information is duplicate', 'Information is incorrect', 'Information relates to other taxpayer').
6. How long does it take for AIS to update after submitting feedback?
Once you submit feedback on the AIS portal, the status is updated immediately. The TIS processed value is also updated in real-time, reflecting the corrected amount for your ITR.
7. Will the Income Tax Department accept my corrected figures if I change them in TIS?
Yes, but the tax department may ask for supporting documents if the mismatch between the reported value and your filed ITR is significant. Submitting feedback on the AIS portal helps justify the difference.
8. Why is my dividend income in AIS different from my bank statement?
Dividend income is reported in the AIS on an accrual basis (based on the record date or payment date declared by the company). Banks or companies may also deduct 10% TDS under Section 194, which is reported separately. Check the exact dividend declarations to reconcile.
9. Does savings bank interest appear in the AIS?
Yes. Under the Statement of Financial Transactions (SFT), banks report savings account interest and fixed deposit interest to the tax department, which is populated in your AIS. This interest must be reported under 'Income from Other Sources' in your ITR.
10. What happens if I don't report transactions shown in my AIS?
If your ITR does not match the income reported in your AIS, the CPC (Central Processing Centre) will issue an automated mismatch notice under Section 143(1)(a), asking you to explain the difference or file a revised return.
11. Is the AIS always 100% accurate?
No. Sometimes entities like banks or brokers report incorrect SFT details or duplicate entries. That is why it is essential to download your AIS, cross-verify it with your bank statements, and submit feedback for corrections where necessary.
12. What is SFT in AIS?
SFT stands for Statement of Financial Transactions. It is a reporting mechanism where specified entities (banks, mutual funds, registrars, sub-registrars) report high-value transactions (cash deposits, property buy/sell, mutual fund transactions) to the tax department.
13. Does sale of mutual funds and equity shares appear in AIS?
Yes. The AIS contains a section called 'Information from SFT' which lists the purchase cost, sale proceeds, and date of transaction for all mutual funds and equity shares sold during the financial year, as reported by depository participants (NSDL/CDSL).
14. Can I file my ITR using only Form 26AS?
No. While Form 26AS is critical for verifying TDS credits, it does not show non-TDS incomes like savings interest, dividends below TDS thresholds, or capital gains. You must use both Form 26AS and AIS/TIS to ensure complete reporting.
15. What if my employer has deducted TDS but it doesn't show in 26AS or AIS?
This occurs if the employer has not filed their TDS return (Form 24Q) or has deposited the tax under an incorrect PAN. You must contact your employer to rectify the TDS return so the credit reflects in your 26AS and AIS, allowing you to claim it in your ITR.