Tax season used to be synonymous with mountains of paperwork. Remember scrambling to find your Form 26AS? Well, those days are long gone! A digital revolution is sweeping across India’s tax landscape and the Indian Income Tax Department is at its forefront. To make filing a breeze for both taxpayers and chartered accountants, they’ve introduced two powerful tools: the Annual Information Statement (AIS) and the Taxpayer Information Summary (TIS).
In this blog, we would dive into how you can master tax filing with these tools, and more… but that’s not all! We’ve got another secret weapon in our arsenal to make filing a breeze. Stay tuned till the end of the blog to discover it!
AIS: Annual Information Statement
The Annual Information Statement (AIS), introduced in India in November 2021, is a comprehensive document that consolidates a taxpayer’s financial activities for a specific financial year. That is, it functions like a one-stop shop, gathering data from banks, investment firms, and government bodies to create a holistic picture. By providing a centralised view of a taxpayer’s income and expenditure, the AIS helps identify discrepancies and potential under-reporting. Additionally, the AIS streamlines the tax filing process by pre-filing tax returns with the information it collects. This not only reduces errors but also saves the taxpayers and chartered accountant’s time and effort during hectic tax season.
AIS relies on various types of data, including:
| Category | Description |
| Tax Deducted at Source (TDS) | Information on taxes deducted by employers, banks, etc. |
| Tax Collected at Source (TCS) | Details of taxes collected at source on transactions like sale of securities. |
| Interest Income | Interest earned on savings accounts, fixed deposits, etc. |
| Dividend Income | Dividends received from companies. |
| Sale of Securities | Details of stock market transactions. |
| Mutual Fund Transactions | Information on purchases, redemptions, and dividends from mutual funds. |
| Foreign Remittance Information | Details of foreign remittances received or sent. |
| Others | May include additional information like pension income, property transactions (future updates). |
Before AIS (Pre-2020):
Reliance on Form 26AS
This form provided limited information, especially for TDS, making manual data entry and reconciliation a tedious process.
Potential for Errors
Discrepancies between taxpayer records and government records could lead to delays and penalties.
Time-Consuming Filing
The manual process could be time-consuming, especially for complex tax situations.
Ease of Filing with AIS (2024):
Pre-Filled Returns
AIS data automatically populates your tax return, reducing manual entry and errors.
Improved Accuracy
Easier reconciliation between taxpayer records and government data ensures accurate filing.
Faster Filing Process
Pre-filled data significantly reduces filing time, making tax season smoother.
How to Access AIS?
1. Login to the Income Tax e-filing portal (https://www.incometax.gov.in/iec/foportal/ ).
2. Then, go to the “e-File” menu.
3. Click on “Income Tax Return” > “View AIS”.
4. Click “Proceed” and then the “AIS” tile to view the statement.
TIS: Taxpayer Information Summary
So, the Taxpayer Information Summary (TIS) is a simplified version of the Annual Information Statement (AIS) designed to be easier for taxpayers to understand. The AIS, often a lengthy document, details a taxpayer’s income, deductions, credits, and taxes owed for a specific tax year. The TIS, on the other hand, presents this information in a more concise and user-friendly format, highlighting key figures and summarising important tax components. The TIS aims to bridge the gap between the detailed AIS and a taxpayer’s comprehension of their tax situation.
Here’s what’s included in TIS:
| Dividend | Total dividends received from investments. |
| Rent Received | Total rental income received from properties. |
| Other Income | Summarises other income categories reported in AIS. |
| Tax Deducted at Source (TDS) | Total TDS deducted on your income by payers (e.g., employer). |
| Tax Collected at Source (TCS) | Total TCS collected at source on specific transactions. |
| Total Income | Aggregate of all income categories. |
| Processed Value | System generated value after removing duplicates. |
| Accepted Value | Value after considering any feedback you provide on the information in AIS. |
Before TIS (Pre-2021)
Earlier, tax season used to be a time-consuming and an error-prone process. Taxpayers had to manually collect information from a variety of sources, including Form 16 for salary income, bank statements for interest income, investment records for dividend income and capital gains, and property records. This manual data collection process was not only tedious, but also increased the risk of errors due to mistakes during data entry. The lack of a central information source meant that taxpayers often had to spend a significant amount of time compiling all the necessary documents before they could even begin the tax filing process.
Current Scenario with TIS
TIS provides a consolidated view of a taxpayer’s income and tax details in a single document. By offering this pre-populated summary, TIS can potentially save taxpayers a significant amount of time and effort during tax season.
The AIS & TIS Advantage: A Win-Win for CAs and Taxpayers
The integration of AIS and TIS offers a plethora of benefits for both CAs and their clients:
- Reduced Errors: Accurate and verified data from AIS minimises errors in tax returns, mitigating potential penalties and delays.
- Improved Efficiency: Streamlined data collection and pre-filled returns through AIS and TIS significantly reduce turnaround times for tax filing.
- Enhanced Transparency: Clients gain a clear understanding of their tax liabilities through TIS, fostering trust and stronger client relationships.
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