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Incomes which are now reported in AIS for Individuals

CA Umesh Sharma , Last updated: 05 June 2023  

Arjuna (Fictional Character): Krishna, As per the directions of Income Tax Department, there are various types of income which are available in the AIS?

Krishna (Fictional Character): Arjuna, The Income Tax Department has announced the roll-out of a statement namely Annual Information Statement (AIS) which would provide you with almost all details about your financial transactions during the year. Earlier, the Income Tax Department has been issuing Form 26AS which will now be replaced with the Annual Information Statement (AIS). The new AIS statement will provide comprehensive information of the taxpayer and will be significantly useful while preparing the tax return.

Arjuna (Fictional Character): Krishna, could you please provide an overview of the key points pertaining to the Annual Information Statement (AIS) for Individuals and Hindu Undivided Families (HUFs)

Incomes which are now reported in AIS for Individuals

Krishna (Fictional Character): Arjuna, the Following important Incomes/transactions are shown in the AIS:

  1. Salary: The AIS includes detailed information about salary, perquisites, profits in lieu of salary, and other salary-related components provided by the employer as per Form 16.
  2. Dividend Received: Dividends paid or declared by companies are reported in the Statement of Financial Transactions (SFT) under Form 26Q.
  3. Interest from Savings Bank/Fixed Deposits: Interest paid, credited, or accrued are reported in the SFT. This information is reported in Form 26Q and provided to the deductee in Form 16A.
  4. Interest from Income Tax Refund: Interest received on income tax refunds is taxable as income from other sources.
  5. Winnings from Lottery/Dream 11/MPL Poker/Junglee rummy.
  6. Receipts from Life Insurance Policy: Receipts from life insurance policies are reported in Form 26Q on a quarterly basis. This information is provided to the deductee in Form 16A.
  7. Share Market Transactions.
  8.  Any Business Receipts on which TDS is deducted.
  9. Any Business Expenses on which TCS is collected.
  10. Turnover as per GST Returns.
  11. Foreign Travel: Payments related to foreign travel are reported in TCS Form 27EQ, and this information is provided to the taxpayer in Form 16D.
  12. Purchase and Sale of Immovable Property: Details about the purchase and sale of immovable property is reported.

Arjuna (Fictional Character): Krishna, What lesson should the taxpayer take from this?         

Krishna (Fictional Character): Arjuna, In conclusion, the implementation of the Annual Information Statement (AIS) by the Income Tax Department marks a significant step towards providing taxpayers with a comprehensive overview of their financial transactions throughout the year. The AIS replaces the previous Form 26AS and offers detailed information on various transactions such as salary, rent received, dividends, interest income, and more. This statement empowers taxpayers to accurately report their income and facilitates smoother tax return preparation. Additionally, the availability of AIS in multiple formats allows taxpayers to conveniently download and review their financial information. The introduction of AIS reinforces transparency, accountability, and efficiency in the tax reporting process, benefiting both taxpayers and the Income Tax Department.

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CA Umesh Sharma
Category Income Tax   Report

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