It will now be easier for taxpayers to take into account all their financial transactions held with different institutions like Banks, Insurance companies, mutual fund agencies, fund brokers, etc online through the Income tax department AIS App. These entities are required to report their annual data to the Income tax department related to an Individual taxpayer having high volume or high-value transactions with them.
The Annual Information Statement (AIS) report has been linked with the PAN of the taxpayer where all transactions are reported through the AIS Section of the E-filing portal to the taxpayer. To simplify access to the information about transactions and those who don’t have access to the Income tax department website, can now check their financial transactions reported to the department through the AIS App.
Income Tax Annual Information Statement Report
The AIS System by the Income Tax Department was introduced to bring taxpayers into tax compliance requirements if they are required to pay taxes or report their high-value transactions with different departments and financial institutions. With the use of an Annual information statement, an automated report is generated on account of a taxpayer where all financial transactions monthly, quarterly, and annually undertaken are reported on the portal.
The statement not only indicates the department for high-value transactions but also reminds the taxpayer of his compliance duties towards the tax department for undertaking such transactions. The AIS report is accessible to the taxpayer with the E-Filling portal online and all annual deductions, payments, and tax grossing transactions are reflected on the portal. For instance, the payments towards the purchase of equity, trading in stock options or futures, or sale of any real estate investment all shall be tracked and reflected onto the AIS Report of the taxpayer.
Compliance and Objectives of Annual Information Statement
From the taxpayer’s viewpoint, the Annual Information statement is an essential statement to consider before doing the Income Tax filing compliance for the year. The AIS includes a summary of major transactions about investments, deductions, receipts, and high-value transactions of a taxpayer. The objective of the creation of such a statement for the taxpayer is to alert him to the associated compliances for the financial year for undertaking the disclosed transactions in the statement.
It will become mandatory for the taxpayer to report all such transactions and the linked fund sources to explain to the department through filing the Income tax return to avoid any kind of penalties and legal consequences.
Tracking of Annual Transactions through the AIS App
Disclosures from multiple sources and institutions shall be provided to the taxpayer under the AIS Report. To help every taxpayer, know what transactions they have undertaken during the year or to keep track of their monthly payments, investments, and much more, the Income tax department has come up with an AIS Mobile application that can be accessed through any smartphone IOS or Android.
On the AIS App, the users can view information related to their TDS/TCS deductions, foreign remittances, tax payments, interest receipts, dividends or share returns, income tax refunds, GST payments, and investments.
On the AIS Mobile app, taxpayers will be able to view their tax and investment information through the use of their PAN and an MPIN ( Mobile Personal Identification Number) which is created at the time of Registration on the application.
Benefits of Using Income Tax Department AIS App
The application will provide a month-to-month report of the transactions also which will be reported by the associated institution in such transactions. The taxpayer on receiving updates about his financial affairs on the app will benefit by way of :
- Checking the value of transactions and knowing the parties linked in such transactions.
- Not ignoring or missing such transactions while filing their tax compliances.
- By matching their computation of income and tax payable with that provided under the AIS Statement.
- Downloading and checking the statement in offline mode through the app.
- Providing feedback to the department in the app for the correct and incorrect information reported by the institutions.
Registration on Tax Department AIS App
As per the Tax department guidelines, Form 26AS from FY 2023-24 onwards shall only provide details regarding deductions of TDS / TCS during the year where all other tax details and transactions shall be reported through the AIS. To access the AIS for Taxpayers with the mobile app, you can :
- Download the “AIS For Taxpayers” Mobile Application from the Play Store or the Apple IOS Store.
- Register on the application by Verifying the PAN and Date of Birth with the Mobile OTP.
- Create an account MPIN to access your account.
Once an MPIN is generated, you can check your AIS every month using your MPIN. The statement can be downloaded in the application also for its offline usage.
What if I lost the MPIN generated on the AIS Mobile app?
You can generate the MPIN on the application again, by verifying your registered mobile number and email with OTP.
Can I check for AIS for previous years on the Income tax department AIS App?
AIS for previous years can be viewed and downloaded in the AIS for Taxpayers mobile application.
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