What types of transactions come under the Annual Information Statement (AIS)?
Up till now, the Income Tax Department has been issuing Form 26AS to provide information related to taxable income and Tax Deducted at Source (TDS). This will be replaced by the Annual Information Statement (AIS). It provides you with almost all the details about your financial transactions during the year. An individual can submit online feedback if the information has been duplicated, is incorrect or pertains to another taxpayer.
This comprehensive information will be significantly useful for a taxpayer while preparing tax returns.
There are 50 transactions to be reported in the AIS.
FINANCIAL MARKET-RELATED TRANSACTIONS:
1. Dividends
Dividends paid/declared by all companies (reporting entity) are reported under the Statement of Financial Transactions (SFT).
A company paying/distributing dividends is liable to deduct TDS from the amount paid, subject to the threshold applicable in the act and report it through Form 26Q (quarterly statement).
This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
2. Interest on Bonds and Government Securities
Information related to interest paid is reported by the payer in Form 27Q.
This information is reported on a quarterly basis and is chargeable to tax at a special rate.
This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
3. Income with respect to units of Non-Resident u/s 115A(1)(a)(iiab)
Information about income with respect to units of a Non-Resident is reported by the payer in Form 27Q.
This information is reported on a quarterly basis and is chargeable to tax at a special rate.
This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
4. Income and Long-term Capital Gains from Units by an Off-shore Fund u/s 115AB(1)(b)
Information about income and long-term capital gained from units payable to an off-shore fund is reported by the payer in Form 27Q.
This information is reported on a quarterly basis and is chargeable to tax at a special rate.
This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
5. Income and Long-term Capital Gains from Foreign Currency Bonds or Shares of Indian Companies u/s 115AC
Information about income and long-term capital gains from foreign currency bonds or shares of Indian companies is reported by the payer in Form 27Q.
This information is reported on a quarterly basis and is chargeable to tax at a special rate.
This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
6. Income on Account of Repurchase of Units by a Mutual Fund/Unit Trust of India (UTI)
Receipt of income on account of repurchase of units by a Mutual Fund/UTI is subject to tax deduction under Section 194F.
The payer should report such information in Form 26Q on a quarterly basis.
This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
7. Sale of Securities and Units of Mutual Fund
In the Statement of Financial Transactions (SFT) reporting of depository transactions, the estimated sale consideration for the debit transaction is determined based on the best possible available price of the asset with the depository (for example, end-of-day price).
The taxpayer will be able to modify the sales consideration and other related information before filing their Income Tax Return (ITR).
8. Off-market Debit Transactions
In the Statement of Financial Transactions (SFT) reporting of depository transactions, the depository reports details of off-market debit transactions.
The transaction value is computed based on the end-of-day price of the security. In case, the consideration is available, the same is also shown.
9. Off-market Credit Transactions
In the Statement of Financial Transactions (SFT) reporting of depository transactions, the depository reports details of off-market credit transactions.
The transaction value is computed based on the end-of-day price.
10. Purchase of Securities and Units of Mutual Funds
Information is reported by the reporting entity in the Statement of Financial Transaction (SFT).
The purchase of shares (including share application money) is reported by the reporting entity in the SFT.
Information is also reported by the reporting entity (such as mutual fund companies) in the SFT.
11. Income Distributed by Investment Fund
This information is reported by the deductor in Form 26Q on a quarterly basis.
OTHER TRANSACTIONS:
12. Income of Foreign Institutional Investors (FII) from securities u/s 115AD(1)(i)
Information about the income of FIIs from securities is reported by the payer in Form 27Q.
This information is reported on a quarterly basis and is chargeable to tax at a special rate.
This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
13. Salary
Employers submit a detailed breakup of salary, prerequisites, and profits in lieu of salary, etc., paid to the employee in Annexure-II of the TDS statement (24Q) for the last quarter.
This information is also provided by the employer to the employee (taxpayer) in Part B (Annexure) of Form 16.
AIS displays all the financial transactions such as salary income, dividend income, interest income from saving/fixed deposits, sales and purchases of securities, etc.
With the help of such financial information, it would be easy for a taxpayer to report the correct information in their Income Tax Return (ITR).
14. Rent Received
Tenants responsible for paying rent are liable to deduct tax at source on the payment of rent. The deductor reports details of the amount paid/credited, date of payment, details of tax deduction made etc. in Form 26Q.
This information is provided by the deductor to the deductee (taxpayer) on Form 16A.
Tenants (individual/HUF) paying rent of more than Rs. 50,000 is liable deduction tax while making the payment to the landlord. The tenant reports details of rent amount paid/credited, property details, date of payment and tax deduction details, etc. pertaining to rent paid on Form 26QC.
15. Interest from Savings Bank
Interest paid/credited/accrued in a savings account is reported under the Statement of Financial Transaction (SFT).
16. Interest from Deposit
A Bank/deductor at the time of paying/crediting interest on deposits is liable to deduct tax from the deposit holder, subject to the threshold applicable in the act.
This information is reported by the bank/Deductor in Form 26Q (quarterly statement).
This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
17. Interest from Others
Interest paid/credited/accrued on others (other than a savings account, term deposit, or recurring deposit) is reported under the Statement of Financial Transactions (SFT).
The bank/deductor at the time paying/crediting this interest (on securities) is liable to deduct tax from the deposit holder, subject to the threshold applicable in the act.
This information is reported by the bank/deductor in Form 26Q (quarterly statement).
This information is provided by the deductor to the deductee (taxpayer) in Form 16A
18. Interest from Income Tax Refund
Interest received on Income Tax Refunds in the financial year is liable to be taxed as 'Income from other sources'.
19. Rent on Plant and Machinery
Tenants paying rent are liable to deduct tax at applicable rates as per the act from the rent paid. Details of rent on plant and machinery are reported by the deductor in TDS Form 26Q.
Tenants furnish the details of rent paid on a quarterly basis.
This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
20. Winnings from Lottery or Crossword Puzzle
The payer is liable to deduct tax at rates applicable as per the act, from winnings of lotteries or crossword puzzles, etc.
Information about winnings is reported by the payer in TDS Form 26Q on a quarterly basis.
Income is taxable at a special rate.
This information is provided by the deductor to the deductee in Form 16A.
21. Winnings from Horse Race
The payer is liable to tax deduction at rates applicable as per the act, from horse race winnings. Information about winnings is reported by the payer in TDS Form 26Q.
Information is reported on a quarterly basis and is chargeable to tax at a special rate.
This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
22. Receipt of Accumulated Balance on Provident Fund (PF) from Employer u/s 111
Employer/Recognised PF reports information on the accumulated balances due to an employee in Form 26Q.
This information is reported on a quarterly basis and is chargeable to tax at a special rate.
This information is provided by the deductor to the deductee (taxpayer) on Form 16A.
23. Interest from Infrastructure Debt Fund
Information related to interest paid is reported by the payer in Form 27Q.
This information is reported on a quarterly basis and is chargeable to tax at a special rate.
This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
24. Interest from Specified Company by a Non-Resident u/s 115A(1)(a)(iiaa)
Information related to interest paid is reported by the payer in Form 27Q.
This information is reported on a quarterly basis and is chargeable to tax at a special rate.
This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
25. Insurance Commissions
Information about insurance commissions received is reported by the payer in Form 26Q on a quarterly basis.
This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
26. Receipts from a Life Insurance Policy
Receipts from a life insurance policy are exempt under Section 10(10D), subject to conditions specified therein. If such conditions are not met, receipts are taxable and tax is also deducted as per u/s 194DA.
This information is reported by the payer in Form 26Q on a quarterly basis.
This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
27. Withdrawal of Deposits under the National Savings Scheme (NSS)
Withdrawals from NSS are taxable. Tax is deducted and reported by the payer in Form 26Q on a quarterly basis.
This information is provided by the deductor to the deductee (taxpayer) in Form 16
28. Receipt of Commission on the Sale of Lottery Tickets
Commissions on lottery business are subject to tax deductions under Section 194G.
The payer reports such information in Form 26Q on a quarterly basis.
This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
29. Income from Investment in Securitization Trust
Income from investments made in securitization trusts is subject to the tax deduction.
The payer reports such information in Form 27Q on a quarterly basis.
This information is provided by the deductor to the deductee (taxpayer) on Form 16A.
30. Interest or Dividend or other Sums Payable to the Government
Income from interest or dividends or other sums payable is not subject to the tax deduction.
The payer reports such information in Form 26Q on a quarterly basis.
This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
31. Payment to Non-resident Sportsmen or Sports Association u/s 115BBA
Information pertaining to the amount paid to non-resident sportsmen or sports associations is reported by the deductor in Form 27Q.
This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
32. Sale of Land or Building
Sale considerations of immovable property transferred are reported under the Statement of Financial Transactions (SFT). This information will be shown in the AIS of all sellers to enable feedback submission.
The sale of immovable property is also reported in Form 61, in case the PAN of the transacting party has not been furnished (PAN is populated based on Aadhaar and other attributes of the person).
Information related to receipts under a specified agreement is reported by the person making the payment for the specified agreement.
This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
33. Receipts from Transfer of Immovable Property
Information related to receipts from the transfer of immovable property is reported by the buyer of property in Form 26QB.
This information is provided by the deductor to the deductee (taxpayer) in Form 16B.
34. Sale of Vehicle
The sale of a motor vehicle is reported in Form 61 in case the transacting party has not furnished their PAN (PAN is populated based on the Aadhaar and other attributes of the person).
35. Business Receipts
Information pertaining to the amount paid to a contractor is reported by a contractee in Form 26Q. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
Information pertaining to the amount paid to the service provider is reported by the recipient of the services in Form 26Q.
This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
36. Business Expenses
Information pertaining to the purchase of alcoholic liquor is reported by the tax collector in TCS Form 27EQ (quarterly statement).
This information is provided by the collector to the taxpayer in Form 27D.
37. Rent Payments
Information is reported by the person making the payment in Form 26QC.
This information is provided by the deductor to the deductee (taxpayer) in Form 16C.
38. Miscellaneous Payments
Information is reported by the person making the payment in Form 26QD.
This information is provided by the deductor to the deductee (taxpayer) in Form 16D.
Purchase of bank drafts or pay orders may be reported on Form 61 if the PAN is not furnished by the transacting party (PAN is populated based on Aadhaar and other attributes of the person).
39. Cash Deposits
Information pertaining to cash deposits in an account other than the current account should be reported by the reporting entity in Form 61A.
The information will be shown in the AIS of all account holders to enable feedback submission.
Information pertaining to cash deposits in a current account is reported by the reporting entity in Form 61A.
The information will be shown in the AIS of all account holders to enable feedback submission.
40. Cash Withdrawal
Information pertaining to cash withdrawals from a current account should be reported by the reporting entity in Form 61A.
The information will be shown in the AIS of all account holders to enable feedback submission.
Sometimes, cash withdrawals from accounts other than a current account are reported by the reporting entity in SFT-004.
The information will be shown in the AIS of all account holders to enable feedback submission.
Information pertaining to Cash withdrawals is reported by the reporting entity through the TDS Statement 26Q.
This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
41. Cash Payments
Information pertaining to cash payments for goods and services is reported by the reporting entity in Form 61A.
Information pertaining to the purchase of bank drafts, pay orders or a banker’s cheque in cash is reported by the reporting entity in Form 61A.
Information pertaining to the purchase of prepaid instruments in cash is reported by the reporting entity in Form 61A.
42. Outward Foreign Remittance/Purchase of Foreign Currency
Information of outward foreign remittance is reported by an authorised dealer in Form 15CC.
Information about remittances under the Liberalised Remittance Scheme (LRS) for educational loans taken from financial institutions mentioned in Section 80E [Third provision to Section 206C(1G)] is reported by the authorised dealer through TCS Form 27EQ for specified foreign remittances made by the remitter.
Information about remittances under LRS for purposes other than the purchase of overseas tour packages or educational loans taken from financial institutions mentioned in Section 206C(1G(a)) is reported by the authorised dealer through TCS Form 27EQ for specified foreign remittances made by the remitter.
43. Receipt of Foreign Remittance
Information related to the payment of royalty or fees for technical services etc., to non-residents, is reported by the deductor in Form 27Q.
This information is provided by the deductor to the deductee (taxpayer) in Form 16A.
Information is reported by the authorised dealer in Form 15CC for foreign remittances made by the remitter.
Information on the receipt of foreign remittances by a remittee is reported by the authorised dealer in Form 15CC.
44 Foreign Travel
Information is reported by the deductor in TCS Form 27EQ (quarterly statement).
This information is provided by the collector to the taxpayer in Form 16D.
Payment in connection with travel to any foreign country may be reported in Form 61 if the transacting party has not furnished their PAN (PAN is populated based on Aadhaar and other attributes of the person).
45. Purchase of Immovable Property
Information related to immovable property is reported by the Property Registrar through the Statement of Financial Transactions (SFT).
The information will be shown in the AIS of all buyers to enable feedback submission.
The buyer is liable for tax deduction at the time of making the payment, based on the amount paid to the seller (subject to the applicable threshold). This information is reported in Form 26QB.
The seller of the property reports the details of the property buyer in Schedule CG of their Income Tax Return (ITR).
Payment for the purchase of immovable property may be reported on Form 61 if the transacting party has not furnished their PAN (PAN is populated based on Aadhaar and other attributes of the person).
46. Purchase of Vehicle
Information is reported by the deductor in TCS Form 27EQ (quarterly statement).
This information is provided by the collector to the taxpayer in Form 16D. Payment for the purchase of a motor vehicle may be reported in Form 61 if the transaction party has not furnished their PAN (PAN is populated based on the Aadhaar and other attributes of the person).
47. Purchase of Time Deposits
Information related to the purchase of time deposits should be reported by the reporting entity (such as the bank) in the Statement of Financial Transaction (SFT).
Information pertaining to the investment in a time deposit is reported in Form 61 in case the transacting party has not furnished their PAN (PAN is populated based on the Aadhaar and other attributes of the person).
48. Credit/Debit card
Information pertaining to an application for the issuance of a credit/debit card is reported in Form 61 in case the transaction party has not furnished their PAN (PAN is populated based on the Aadhaar and other attributes of the person).
49. Balance in Account
Details of your bank account, other than savings and time deposits opened during the year, are reported in Form 61.
Bank accounts with a balance exceeding Rs. 50,000 at the closing of a financial year, are also reported in Form 61.
50. Income Distributed by Business Trust
Information related to income from units of a business trust is reported by a taxpayer in Form 27Q. Information is reported on a quarterly basis and is chargeable to tax at a special rate.
Please be very careful while filing your Income Tax Returns (ITR). Proper records have to be maintained for this list of items, as the Income Tax department can inquire into it anytime.
Be alert and careful of PAN misuse. If another person uses your PAN for purchases, the transaction will reflect in your AIS. You will be liable to answer to the Income Tax department in case of inspections.Still need help? Create Ticket
