Annual Information Statement (AIS) is a statement of financial transactions furnished to it by various entities in respect a taxpayer collated by the tax department based on the PAN.
The newly launched Annual Information Statement (AIS) is a tool that tells taxpayers what the tax department knows about them. AIS is a comprehensive statement containing details of all the financial transactions undertaken by you in a financial year (FY), i.e. it contains the information that are specified under the Income-tax Act, 1961.
AIS contains information related to income earned from various sources such as salary, dividend, interest from savings account, recurring deposits, sale and purchase of equity shares, bonds, mutual funds etc. The statement also contains information related to TDS, TCS and any tax demand or refund.
We will discuss the Income in details as below:
- Purchase of vehicle- Information under the information category ‘Purchase of Vehicle’ will be grabbed from the following sources-
- TCS return- According to provisions of section 206C(1F), every seller receiving sale consideration of a motor vehicle exceeding INR 10 Lakhs is liable to collect TCS @ 1%. After collecting TCS, the collector is required to furnish quarterly TCS return in Form 27EQ and correspondingly issue a TCS certificate in Form 27D to the collectee. The information so furnished by the collector via TCS return in Form 27EQ will be considered for the information category ‘Purchase of Vehicle’ under ‘Annual Information Statement’.
- Form 61- In case the transacting party doesn’t furnish PAN, the payment for the purchase of motor vehicles will be reported via Form 61. Accordingly, the information furnished via Form 61 will also be considered under the ‘Annual Information Statement’.
2. Purchase of immovable property- The different sources of information for the information category ‘Purchase of immovable property’ under ‘Annual Information Statement’ is summarized hereunder-
a) Statement of Financial Transaction (SFT-012)- Information relating to immovable property is furnished by the property registrar via Statement of Financial Transaction (SFT). The same will be taken into consideration under ‘Annual Information Statement’. Notably, the information will be reflected in the AIS of all the buyers.
b) Tax Deduction at Source (TDS) return in Form 26QB- As per TDS provisions covered under section 194-IA, the buyer of the specified immovable property is liable to deduct TDS and report the same via TDS return in Form 26QB. The details reported through Form 26QB will be taken into consideration under ‘Annual Information Statement’.
c) Schedule CG of Income Tax Return- Seller of the immovable property is required to furnish the details of the buyer in ‘Schedule CG’ of the Income Tax Return. The details so furnished via the referred Schedule will be considered under ‘Annual Information Statement’.
d) Form 61- If the transacting party doesn’t report PAN, then the payment of the purchase of immovable property is reported in Form 61. The details reported through Form 61 will be taken into consideration under ‘Annual Information Statement’.
3. Foreign Travel- ‘Annual Information Statement’ will grab the information under the information category ‘Foreign Travel’ from the TCS return filed by the collector in Form 27EQ.
4. ‘Receipt of foreign remittance’- As per provisions of rule 37BB, the authorized dealer is required to furnish information relating to foreign remittances made by remitter PAN in Form 15CC.
5. Outward foreign remittance/ purchase of foreign currency’- According to rule 37BB of the Income Tax Rules, 1962, the authorized dealer is required to furnish a quarterly statement in Form 15CC reporting the outward foreign remittance.
6. Income distributed by business trust- The information furnished by the deductor via Form 27Q/ Form 26Q will be taken up as a source of information for the information category ‘Income distributed by business trust’ under ‘Annual Information Statement’.
7. Bank Account balance- Bank account having balance exceeding INR 50,000 at the closing of the Financial Year.
8. Purchase of time deposits-
a. Statement of Financial Transaction (SFT)- Information relating to ‘Purchase of time deposits’ is furnished by the reporting entity (like banks) via Form 61A [SFT- 005]. Notably, such information covers both PAN as well as non-PAN transactions. Said information furnished by the reporting entity will be considered under the ‘Annual Information Statement’.
b. Form 61- Information relating to ‘Purchase of time deposits’ will be reported via Form 61 in case the PAN is not furnished by the transacting party.
9. Credit or debit card Information- Information furnished by the reporting entity via Form 61 will be taken into consideration for the information category ‘credit/ debit card’ under the Annual Information Statement.
10. Rent Payments- ‘Annual Information Statement’ will grab information, under the category ‘Rent Payments’ on the basis of challan-cum-statement in Form No. 26QC filed by the deductor.