When you’re paying tax in India, you may come across two interrelated terms “AIS” & “Form 26AS” respectively. In this regard, AIS serves the taxpayers a wholesome view of tax deductions, but Form 26AS gives the view of partial or high-value TCS transactions.
Here, we’ll explore the significant differences between AIS & Form 26AS.
One of two tax documents, AIS provides a roadmap of various sectors’ tax payments to investors. The income tax department in 2021 launched the new Annual Information Statement. Thus, it presents taxpayers an overall overview of their transactions in a specific fiscal year.
To check AIS form, you can log in to www.incometax.gov.in for easy filing of your returns, and encourage your voluntary compliance and deter non-compliance.
Form 26AS provides in-depth reports on self-assessment transactions, TDS or TCS transactions, moreover, high-value transactions. It also takes into account the comprehensive documentation of off-market transactions and foreign remittances, and mutual funds.
To know more details, taxpayers can log in to www.incometax.gov.in.
AIS and Form 26AS, both serving as an important module in tax payments in India can also serve different purposes or information. They can be stated as follows:-
- First of all, AIS statements are made by taxpayers for high-value transactions during a specific financial year. Contrarily, Form 26AS provides a consolidated statement containing tax deducted at source and advanced tax payment.
- AIS comprises details that include the quantity of cash deposited in the bank accounts, credit card payments, purchase or sale of immovable property of shares of mutual funds. Form 26AS includes details of any refunds received by the taxpayer from the department.
- AIS also provides flexibility to crosscheck documents to help provide information available to the taxpayers with the tax department. Form 26AS helps taxpayers reconcile their tax liability with their tax paid during a fiscal year.
Overall, taxpayers get important information about their tax deductions from these two significant documents. While, AIS provides a comprehensive view of all financial transactions, Form 26AS provides a consolidated statement of tax credits that helps taxpayers reconcile their tax liabilities with the TDS deducted on their behalf. To avoid any inconveniences, you should also crosscheck your transactions other than only filing what is shown by the documents to improve transparency and penalties.