Annual Information Statement (AIS): What It Is & How to Use It for ITR

The Annual Information Statement (AIS) is a statement of consolidated financial information released by the Income Tax Department. It gives a detailed summary of financial transactions reported to the taxpayer against his Permanent Account Number (PAN) for the financial year. It is intended to provide transparency, make tax filing easier and assist taxpayers in determining if the information they have with the department is complete and accurate.

AIS has emerged as a significant reference for Income Tax Return (ITR) filers. It contains information about income, taxes, investments, securities transactions, interest received and other high-value activities that could impact tax liability.

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What Is the Annual Information Statement (AIS)?

The Annual Information Statement is a new and updated version of the previous Form 26AS. Form 26AS was mainly used to get information on tax deducted at source (TDS), tax collected at source (TCS) and advance tax, whereas AIS gives a wider financial picture.

The statement is compiled from data from banks, employers, mutual fund registrars, stock exchanges, authorised reporting entities and other institutions.

AIS typically includes:

AIS is available through the Income Tax e-filing portal and can be downloaded in PDF, JSON, or CSV format.

Why AIS Matters for ITR Filing

AIS is a tool that assists taxpayers in comparing the data reported to the Income Tax Department prior to filing Income Tax Returns. Since financial institutions directly submit transaction details to the department, there may be differences between the information reported on the return and the information reported on the AIS and notices or requests for clarification may be issued.

The use of AIS during ITR filing will help minimise reporting errors and ensure consistency in income and tax reporting.

The Income Tax Department says that there are now over 100 million registered users in India as part of the e-filing ecosystem. As a result of the greater use of digitally reported financial information, the role of AIS in return verification and compliance has also grown.

Difference Between AIS and Form 26AS

Although AIS and Form 26AS are related, they are not the same document.

Form 26AS still remains relevant for checking tax credits, but AIS offers a more complete picture for return preparation.

Components of AIS

AIS is divided into two main sections.

Part A: General Information

This section includes:

• PAN details
• Aadhaar masking information
• Name and date of birth/incorporation
• Contact information
• Address details

Part B: Financial Information

This section contains transaction-level data reported by various entities.

It may include:

• Salary received
• Interest earned
• Dividend income
• Purchase and sale of securities
• Mutual fund transactions
• Rent received
• Foreign remittance information
• Tax refunds
• GST turnover information where applicable

The statement also shows both the reported value and the modified value if feedback has been submitted by the taxpayer.

How to Access AIS Online

AIS can be accessed through the Income Tax Department’s e-filing portal.

Steps to download AIS

1. Log in to the Income Tax e-filing portal using PAN credentials.
2. Navigate to the “Services” section.
3. Select “Annual Information Statement (AIS)”.
4. Open the compliance portal.
5. Choose the relevant financial year.
6. Download the AIS in the preferred format.

The PDF version downloaded is password protected. The password is typically a mixture of the PAN (minus the capital letters) and the date of birth (DDMMYYYY).

How AIS Helps During ITR Filing

AIS can assist taxpayers at different stages of return preparation.

Verifying income details

Saving bank interest, fixed deposit interest and recurring deposit interest are frequently overlooked while filing returns. AIS can be used to detect these entries.

Cross-checking capital gains transactions

Depository/Registrar-reported transactions in the share market or mutual funds could be included in AIS. This information can be used by taxpayers to compare with broker statements and capital gains reports.

Matching tax credits

AIS also reflects TDS and TCS information, allowing users to reconcile tax credits before submission.

Identifying reporting mismatches

If a bank or institution reports incorrect information, taxpayers can identify the discrepancy before filing returns.

AIS Feedback Facility

One notable feature of AIS is the ability to submit feedback on reported transactions.

Taxpayers can mark a transaction as:

• Information is correct
• Information is duplicate
• Information is denied
• Information is not fully correct
• Information relates to another PAN or year

Once feedback is submitted, the system updates the derived information accordingly.

This feature is particularly useful where duplicate entries or incorrect transaction classifications appear in the statement.

Common Issues Taxpayers May Notice in AIS

AIS is based on data submitted by reporting entities. In some cases, taxpayers may notice differences between their records and the statement.

Common issues include:

Reviewing AIS carefully before filing returns can help address these issues early.

AIS and Compliance Monitoring

AIS is part of the broader digitisation and data integration effort within India’s tax administration system. The use of centralised reporting allows the department to compare declared income with institution-reported financial activity.

India’s direct tax collections crossed ₹19 lakh crore during the financial year 2023–24, reflecting the increasing role of digital compliance systems and information reporting frameworks in tax administration.

For taxpayers, this means greater importance of accurate disclosure and proper reconciliation of financial records before filing returns.

Best Practices for Using AIS

Review AIS before starting ITR filing

Do not rely only on salary slips or bank statements. AIS may contain additional information that affects tax reporting.

Compare AIS with supporting documents

• Cross-check entries with:
• Form 16
• Interest certificates
• Capital gains statements
• Bank account summaries
• Dividend statements

Submit feedback where required

Incorrect or duplicate entries should be flagged promptly through the feedback option.

Keep records organised

Maintaining transaction records throughout the year makes reconciliation easier during tax filing season.

Key Takeaways on AIS and Income Tax Returns

The Annual Information Statement has become an important part of the ITR filing process in India. It provides taxpayers with a consolidated view of reported financial information, helping improve transparency and reduce reporting mismatches. Reviewing AIS carefully before filing returns can help ensure that declared income, tax credits, and financial transactions remain consistent with the records available to the Income Tax Department.