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  • Writer's pictureCS Joseph Sequeira

Annual Information Statement (AIS)

The Income Tax Department issued the newly launched AIS  facility which is a comprehensive statement containing details of 46 OF the financial transactions (income, investment, expenditure) undertaken by a person in a financial year (FY).


AIS provides details of all the income received from various sources irrespective of whether tax has been deducted on such income or not. Further, investments made will also be reflected in the AIS.


AIS looks at 46 financial transactions as per the income tax website:


1. Information about Salary amount paid alongwith the tax deducted, paid to the Assessee, will be shown in the AIS, TAN of employer and PAN of Assessee. The amount mentioned in the AIS will be gross salary including all exempt allowances. Individual will be required to claim exemption and deductions as applicable while filing income tax return (ITR).


2. Rent received from various sources will be shown in AIS. This includes:


- If the Assessee has given your PAN to your tenant and your tenant has given PAN to his employer to claim HRA exemption.


- If the Assessee is receiving rent of Rs 50,000 or more per month;


- If the Assessee has received rent from land, building, machinery etc. where TDS has been deducted at the rate of 10%.


The information for rent received will be summed up at PAN level. Similarly, employer reports the PAN of landlord to whom rent is paid by an employee in Annexure II of the TDS statement. The sum of rent received from all tenants will be reflected in the Taxpayer Information Summary (TIS).


3. Balance in bank accounts

Opening of account other than savings account or fixed deposits (e.g., recurring deposit accounts) will be shown in AIS. Further, bank accounts with balance exceeding Rs 50,000 at the closing of financial year will be shown in AIS.


4. Cash deposits made in current accounts will be shown in AIS. Also, cash deposits made in other accounts reported by financial entities, mandated to do so under income tax law, will be reflected in AIS. Form 61A has to be filed by the reporting agency that includes bank, co-operative bank, Post office, NBFC etc.


5. Cash withdrawals made from current accounts will be shown in AIS. Also, cash withdrawals from other accounts reported by financial entities such as bank, co-operative bank, post office etc., mandated to so under income tax law will be shown in AIS.


6. Any Credit/debit card issued to the Assessee during the financial year will be shown in AIS.


7. Dividends received by the Assessee from equity shares, mutual funds are shown in the AIS. Further, tax deducted by the companies, mutual fund houses will also be reflected in the AIS. Dividend income will be listed on the basis of PAN of the Assessee, information source and value.


8. Interest paid, credited or accrued on savings account held by the Assessee during the financial year is shown in the AIS as interest earned from savings account is taxable. However, the Assessee is allowed to claim deduction of up to Rs 10,000/- under section 80TTA except for senior citizens and super citizens.


9. Purchase of time deposits made by the Assessee (such as bank fixed deposits) will be shown in the AIS.


10. Interest from deposits received by the Assessee from deposits like fixed deposits, recurring deposits. etcis included. The tax deducted at source will also be reflected in AIS.


However, senior citizens and super senior citizens can claim deduction of Rs 50,000 under section 80TTB which covers interest received from savings account, fixed deposits, recurring deposits, post office schemes etc.


11. Purchase of securities like shares, bonds and units of mutual funds, etc. will be shown in AIS.

AMC regularly reports this information to the Income Tax department.


12. Sale of securities

Registrar and Transfer Agents (RTAs) and depository participants (DPs) report sale transactions of units and mutual fund with details of PAN, name and other details etc. of an individual to the income tax department. The capital gains accrued from the sale of units of mutual funds will be classified on the basis of holding period and will be shown in the AIS.


13. Interest from other sources, other than savings account, term deposits, recurring deposits received by the Assessee, are reported to the income tax department by the paying entity. This interest income received from these other sources will also be shown in the AIS.


14. Cash payments made for goods and services, purchase of bank drafts or pay orders or bankers' cheque, prepaid instruments in cash, bullion and jewellery etc. will be shown in AIS, wherever these payments are made to the reporting entity.


15. Receipt of accumulated balance of PF from employer u/s 111

Withdrawals received from provident fund account or any accumulated balance received from the employer from a PF Trust, will also be reflected in the AIS. Any withdrawal of more than Rs 50,000 before the completion of five years of service, will attract tax at source (TDS) on the amount. Any withdrawal made before the completion of five years of continuous service, will be taxed on the entire amount received. Amounts withdrawn after 5 years will be exempt from tax.


16. Receipts from life insurance policy are exempted from tax under section 10(10D), provided certain conditions are met. If not, then receipt will be taxable and TDS will be deducted. All amounts received from life insurance policies will be shown in AIS. The Assessee can report the same in the income tax return if the proceeds are tax-exempt,


17. Withdrawal of deposits from

National Savings Scheme also known as Post Office Savings Scheme. Money received from these schemes, either prematurely withdrawn or at the time of maturity, will be shown in the AIS.


18. Interest from income tax refund

The income tax department pays interest on the income tax refund amount. The interest is calculated at the rate of 0.5% per month. The interest received on the income tax refund is taxable in the hands of individual under the head 'Income from Other Sources'. Such refund if received, will be shown in the AIS.


19. Purchase of foreign currency purchased for the buying of equity shares, debt instruments, real estate etc. or opening of bank account abroad or for travel for pilgrimage, medical treatment, education etc. will be shown in AIS.


20. Rent payments

The rent received and rent payments made by the Assesses are shown in the AIS, provided tax has been deducted at the time of making payment. If monthly rent of Rs 50,000 or more is paid, then the Assessee is required to deduct tax at the rate of 5% on the payment made. The total amount paid by the tenant as rent will be reflected in the AIS.


21. Foreign travel expenses like

purchase of overseas tour package or payment made in connection with foreign travel will be is shown in AIS.


22. Purchase of immovable property

bought such as house, land building etc. will be shown in AIS.


23. Receipts from transfer of immovable property such as a house, plot, etc. will be shown in the AIS. The information will be sourced from Form 26QB reported by the buyer. Form 16B will be issued to the seller for the tax deducted on the sale consideration.


Tax is deducted if the overall payment in respect of such property exceeds Rs 50 lakh.


24. Receipt of foreign remittance

Any payment received by non-residents related to royalty or fees for technical services etc. will be reflected in AIS. Similarly, any other receipt of foreign remittances such as money received due to sale of foreign shares or dividend received from foreign shares etc. will also be shown in AIS.


25. Rent from plant and machinery

If the Assessee is receiving rent from plant and machinery, where tax has been deducted at the rate of two per cent, then such amount will be shown in the AIS.


26. Winnings from lottery or crossword puzzle u/s 115BB and any tax deducted on it will be shown in the AIS. At the time of making payment to the winner of the lottery etc., the payer shall deduct tax at the applicable rate. Individual will receive Form 16A from the payer showing the amount paid and tax deducted.


27. Winnings from horse race u/s 115BB will be shown in the AIS.


28. Interest from Infrastructure Debt Fund will be shown in the AIS. Tax will be deducted st source from interest payment from infrastructure debt fund. Such interest is taxable under the head 'Income from Other Sources'.


29. Interest from specified company by a non-resident and any tax deducted at the time of making the payment, will be shown in the AIS.


30. Interest on bonds and government securities is taxable in the hands of an individual. Such interest paid will be shown in the AIS.

Form 16A will be issued to the Assessee by the tax deductor for the

Tax deducted on the interest paid.


31. Interest income in respect of units of non-resident from an Indian company as specified under section 115A(1)(a)(iiab), then interest received will be shown in the AIS along with tax deducted and shown in the AIS. Form 16A will be issued to the non-resident for the amount.


32. Interest income and long-term capital gain from foreign currency bonds or shares of Indian companies, paid by an Indian company or dividends from Global Depository Receipts as specified under section 115AC of the Income Tax Act, if received by a non-resident, will be shown in AIS.


33. Insurance Commission

Insurance commission received from selling of insurance policies will be shown in AIS.


34. Receipt of commission etc. on sale of lottery tickets will be shown in the AIS. The amount of commission paid is reported by payer of commission via Form 26Q.


35. Sale of land or building

Any amount received from the sale of land or building will be shown in the AIS. The amount reported in the AIS will be taken from Form 26QB. This is the TDS return form filed by the buyer of the property after deducting tax on the sale consideration paid to the seller. If no tax is deducted on the sale amount, then data will be collected via your PAN which would be furnished by the transacting party. Compensation received on acquisition of immovable property (for e.g. individual receives compensation from government on the land or building acquired by the government) will also be sbown in the AIS. .


36. Off-market debit transactions

The Depository Participants (DPs) and Registrars and Transfer Agents (RTAs) are required to submit details of off-market transactions (of shares, other securities) which will be shown in AIS. Off-market transactions include gifting of shares, mutual funds, transmission due to death of first holder etc.


37. Off-market credit transactions

Similar to off-market debit transactions, off-market credit transactions will also be shown in AIS.


38. Business receipts

All business income receipts will be shown in the AIS. This includes receipts from contract payments, as reported in Form 26Q, fees for professional or technical services, any other commission or brokerage received as reported in Form 26QD. Such income received are taxable under the head 'Income from business and profession'.


39. Business expenses

Any business expenses is also shown in AIS. Expenses that are shown are : purchase of alcoholic liquor, timber obtained under forest lease or from any other mode, scrap, commission or brokerage paid, payment for professional services etc.


40. Miscellaneous payments in AIS

The miscellaneous payments include - payment made for contract/work, purchase of bank drafts or pay orders, payment to hotel, life insurance premium, credit card etc. These payments would be reported by the entity receiving the payment.


41. Any purchase of vehicle, where tax has been collected from purchaser at time of buying will be shown in AIS.


42. Income distributed by business trust which is reported by payer in Form 27Q is shown in the AIS.


43. Income from units distributed by investment fund as reported by payer in Form 26Q is shown in the AIS.


44. Income from investment in securitisation trust is subject to tax deduction at source (TDS). The payer reports such information in Form 27Q on a quarterly basis. Therefore, it would be shown in the AIS.


45. Sale of Vehicle

Amount received from the sale of vehicle will be shown in the AIS of the seller.


46. Payment to non-resident sportsmen or sports association under section 115BBA. If any non-resident sportsman or sports association receives income from participating in any game in India (Other than winnings from the game, advertisement and contribution to articles relating to game or sport in India in newspapers, magazines etc.,) then such amount received will be shown in the AIS of the Assessee.


The writer a Practicing Company Secretary with more than 30 years in project consultancy. He can be contacted for queries or assistance at the following address:


CS Joseph Sequeira

B.Com, LL.B, FCS, MICA

Practicing Company Secretary

Delfina Apts, Opp. Rosary Church,

Caranzalem, Panaji, Goa - 403004

Email : josephcf@yahoo.com

Phone: +91 8380087153

Website : www.csjoseph.in


Disclaimer: The information given in this document has been made on the basis of the provisions stated in the Income Tax Act. 1961 and Rules and other applicable laws, if any. The information in this document is for general informational purposes only and is not a legal advice or a legal opinion. You should seek the advice of legal counsel of your choice before acting upon any of the information in this document. We are not responsible for any loss, claim, liability, damage(s) resulting from the use, omission or inability to use the information provided in the document.


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