Mitali
Overview
Every year, many taxpayers file their ITR solely from their Annual Information Statement but every entry in AIS may not be taxable. Similarly, several taxable transactions may not appear in AIS but you may still need to report in your ITR.
What is AIS?
AIS most commonly refers to the Annual Information Statement is an financial summary available on the Income Tax portal that contains information about your financial transactions, including:
- Salary
- Interest income
- Dividend
- TDS/TCS
- Share transactions
- Mutual funds
- Property transactions
- Credit card payments
- Cash deposits
- Foreign remittances
- High-value transactions
- Payment of taxes
- Demand and Refund
- Interest on Income Tax Refund
Transactions Reflected In AIS But Not Taxable
| Transaction | Report in ITR? | Taxable | Reason |
| Purchase of shares | No | Capital Gain on Sale | Buying shares is an investment doesn't create capital gains. |
| SIP or Mutual Fund purchase | No | Capital Gain on Redemption | Tax arises only from profit on redemption or sold. |
| Purchase of property | No | Seller's Capital Gain | Buyer doesn't earn taxable income. |
| FD/RD principal received on maturity | No | Interest | Deposit amount is not income, only interest is taxable. |
| Cash deposited | No | Only if source is unexplained | Explained cash deposits are generally not taxable. |
| Transfer between your own bank accounts | No | Nil | It's only movement of money. |
| Gifts from relative | No | Nil | Fully exempt under the IT Act. |
| Loan Received | No | No | Loan is liability not income. |
| Gold purchase | No | Capital Gain on Sale | Purchase is an investment. |
| NPS, PPF, NSC investment | No | Nil | Investment doesn't create taxable income. |
| Foreign remittance for personal expenses | No | Nil | Personal expenditure is not taxable. |
Transactions Not Reflected In AIS But Taxable
| Transaction | Reflected in AIS | Taxable | Reason |
| Intraday Share | No | Yes | Speculative Business Income |
| Future and Option Trading | No | Yes | Non-Speculative Business Income |
| Crypto Trading on Foreign Exchange | No | Yes | Virtual Digital Assets |
| Foreign Share, Bank A/C , MF | No | Yes | Schedule FA Mandatory |
| Sale of Property | No | Yes | Capital Gain Taxable |
If you fail to disclose these transactions, it may result in notices, reassessment, penalties or interest. So you must check carefully before submitting income tax return.
Also Read: Individual Income Tax Return Filing Due Dates for FY 2025-26
FAQs
Is every transaction shown in AIS taxable?
No. AIS reports financial information, but many transactions are not taxable by themselves.
Is FD maturity amount taxable?
Yes, it is taxable but only the interest amount not the principle amount.
Can I ignore transactions that are missing from AIS?
You cannot ignore transactions if taxable, it must be reported even if that are missing from AIS.
Do I need to report foreign assets?
Yes. Resident taxpayers who are required to disclose foreign assets must report them in Schedule FA, even if they do not appear in AIS.
CAclubindia
