New Annual Information Statement and 50 Transactions to be Included

The Income Tax Department has issued a new statement namely the Annual Information Statement (AIS) which is sure to provide practically all the significant financial transactions during the year by the taxpayers.

Previously, the Income Tax Department provided Form 26AS, which contained information about taxable income and tax deducted at source (TDS). The contents and details of the Annual Information Statement (AIS) will now be broader, though the existing Form No. 26AS will continue to provide information on TDS/TCS/Advance Tax Payment, among other things.

The new AIS statement will be a document containing comprehensive information about the taxpayer and will be of great help when preparing tax returns. Information is provided in his AIS after removing duplicate information and taxpayers can download this information in PDF, JSON and CSV formats.

A taxpayer can submit her feedback online if the information is inaccurate, pertains to another person/year, or is duplicated. Responses are for rejecting information, confirming transactions, commenting on information, etc.

Let’s take a look at the top 50 deals reported in the new annual information report.

1. Starting salary

The employer provides a detailed breakdown of salary, benefits, and benefits in lieu of salary paid to the employee in Schedule II of her TDS statement (24Q) for the most recent quarter. This information is also provided to the employee (taxpayer) by the employer on Form 16, Part B (Appendix). AIS displays all financial transactions such as salary income, dividend income, interest income from savings/deposits, and buying and selling securities. All of this financial information will be used to make it easier for taxpayers to provide accurate information. their income tax returns

2. Receipt of rent

Tenants who are responsible for paying rent must withhold tax on their rent payments. The deductor reports details such as the amount paid/credited, the date of payment, and details of tax deductions made. on Form 26Q. This information is provided by the withholding agent to the withholding agent (taxpayer) on Form 16A. Tenants (individuals/HUF) paying rent over 50,000 are eligible for tax credits when paying their landlord. Tenants report paid/credit details, property details, payment dates, tax deduction details, etc. related to renting paid on Form26QC.

3. Dividend

Dividends paid/declared by all companies (reporting entities) are reported on the Statement of Financial Statements (SFT). Companies that pay/distribute dividends must deduct the TDS from the amount paid and report it on Form 26Q (Quarterly Statement) as per applicable standards by law. This information is provided by the withholding agent to the withholding agent (taxpayer) on Form 16A.

4. Interest from savings bank

Interest paid/credited/accrued to your savings account will be reflected on your Statement of Financial Statements (SFT).

5. Interest from the deposit

The bank/withholding agent must deduct the tax paid by the deposit holder at the time the interest is paid/credited to the deposit, subject to thresholds applicable by law. This information will be reported by your bank/withholding agent on Form 26Q (Quarterly Summary). This information is provided by the withholding agent to the withholding agent (taxpayer) on Form 16A.

6. Interest from others

Other payments/credits/accrued interest (excluding savings deposits, term deposits, and term deposits) are accounted for on your Statement of Financial Statements (SFT). Banks/deductors are required to deduct tax paid by deposit holders upon payment/credit of other interest (interest on securities) in accordance with thresholds applicable by law. This information will be reported by your bank/withholding agent on Form 26Q (Quarterly Summary). This information is provided by the withholding agent to the withholding agent (taxpayer) on Form 16A.

7. Interest on income tax refund

Interest on income tax refunds during the financial year is taxed as income from other sources.

8. Factory/machine rent

A rent-paying tenant is obliged to deduct taxes from the rent paid at the applicable rate in accordance with the law. Plant and machinery lease details are reported by the deductible item on TDS Form 26Q. Tenants provide details of rent paid quarterly. This information is provided by the withholding agent to the withholding agent (taxpayer) on Form 16A.

9. Winnings from lottery or crossword puzzle

The payer is liable to deduct tax at the applicable rate as per act from winnings from lottery or crossword puzzle etc. Information about winnings is reported by the payer in TDS form 26Q. Information is reported on a quarterly basis. Income is taxable at a special rate. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.

10. Winnings from horse race

The payer is liable to deduct tax at the applicable rate as per act from winnings from the Horse race. Information about winnings is reported by the payer in TDS form 26Q. Information is reported on a quarterly basis and is chargeable to tax at a special rate. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.

11. Receipt of accumulated balance of PF from employer u/s 111

Employer/recognized provided fund reports information about the accumulated balance due to an employee in form 26Q. Information is reported on a quarterly basis and is chargeable to tax at a special rate. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.

12. Interest from infrastructure debt fund

Information relating to interest paid is reported by the payer in form 27Q. Information is reported on a quarterly basis and is chargeable to tax at a special rate. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.

13. Interest from specified company by a non-resident u/s 115A(1)(a)(iiaa)

14. Interest on bonds and government securities

15. Income in respect of units of non-resident u/s 115A(1)(a)(iiab)

Information about income in respect of units of Non-Resident is reported by the payer in form 27Q. Information is reported on a quarterly basis and is chargeable to tax at a special rate. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.

16. Income and long-term capital gain from units by an offshore fund u/s 115AB(1)(b)

Information about income and long-term capital gain from units payable to an offshore fund is reported by the payer in form 27Q. Information is reported on a quarterly basis and is chargeable to tax at a special rate. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.

17. Income and long-term capital gain from foreign currency bonds or shares of Indian companies u/s 115AC

Information about income and long-term capital gain from foreign currency bonds or shares of Indian companies is reported by the payer in form 27Q. Information is reported on a quarterly basis and is chargeable to tax at a special rate. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.

18. Income of foreign institutional investors from securities u/s 115AD(1)(i)

Information about the income of foreign institutional investors from securities is reported by the payer in form 27Q. Information is reported on a quarterly basis and is chargeable to tax at a special rate. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.

19. Insurance commission

Information about the insurance commission received is reported by the payer in Form 26Q on a quarterly basis. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.

20. Receipts from a life insurance policy

Receipts from a life insurance policy are exempt under section 10(10D) subject to conditions specified therein. If such conditions are not met, the receipts become taxable and tax is also deducted u/s 194DA. The information is reported by the payer in Form 26Q on a quarterly basis. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.

21. Withdrawal of deposits under the national savings scheme

Withdrawals from NSS are taxable. Tax is also deducted on such withdrawals and reported in Form 26Q by the payer on a quarterly basis. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.

22. Receipt of commission etc. on sale of lottery tickets

Commission on lottery business is subject to tax deduction under section 194G. The payer reports such information in Form 26Q on a quarterly basis. This information is provided by the deductor to the deductee (taxpayer) in Form 16A

23. Income from investment in securitization trust

Income from the investment made in a securitization trust is subject to a tax deduction. The payer reports such information in Form 27Q on a quarterly basis. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.

24. Income on account of repurchase of units by MF/UTI

Receipt of income on account of repurchase of units by MF/UTI is subject to tax deduction under section 194F. The payer reports such information in Form 26Q on a quarterly basis. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.

25. Interest or dividends or other sums payable to the government

Income from interest or dividends or other sums payable is not subject to tax deduction. The payer reports such information in Form 26Q on a quarterly basis. This information is provided by the deductor to the deductee (taxpayer) in Form 16A

26. Payment to non-resident sportsmen or sports association u/s 115BBA

Information pertaining to the amount paid to non-resident sportsmen or sports associations is reported by the deductor in form 27Q. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.

27. Sale of land or building

Sales consideration of immovable property transferred is reported under the Statement of Financial Transactions (SFT). The information will be shown in the AIS of all sellers to enable the submission of feedback. The sale of immovable property is also reported in Form 61 where PAN is not furnished by the transacting party. PAN is populated based on aadhaar and other attributes of the person. Information related to receipts under the specified agreement is reported by the person making payment for the specified agreement entered into. This information is provided by the deductor to the deductee (taxpayer) in Form 16A.

28. Receipts from transfer of immovable property

Information related to receipts from transfer of immovable property is reported by buyer of property in Form 26QB. This information is provided by the deductor to the deductee (taxpayer) in Form 16B.

29. Sale of vehicle

The sale of motor vehicles is reported in Form 61 where PAN is not furnished by the transacting party. PAN is populated based on aadhaar and other attributes of the person.

30. Sale of securities and units of mutual fund

In the SFT reporting of depository transactions, the estimated sale consideration for the debit transaction is determined by the best possible available price of the asset with the depository (e.g. end of day price). The taxpayer will be able to modify the sales consideration and other related information before filing the return. In the SFT reporting of depository transactions, the estimated sale consideration for the debit transaction is determined on the best possible available price of the asset with the depository (e.g. end of day price). The taxpayer will be able to modify the sales consideration and other related information before filing the return.

31. Off-market debit transactions

In the SFT reporting of depository transactions, the depository reports details of off-market debit transactions. The value of transaction is computed on the basis of the end-of-day price of the security. In case, the consideration is available, the same is also shown.

32. Off-market credit transactions

In the SFT reporting of depository transactions, the depository reports details of off-market credit transactions. The value of transaction is computed on the basis of the end of day price

33. Business receipts

Information pertaining to amount paid to contractor is reported by contractee in form 26Q. This information is provided by the deductor to the deductee (taxpayer) in Form 16A. Information pertaining to amount paid to the service provider is reported by recipient of services in form 26Q. This information is provided by the deductor to the deductee (taxpayer) in Form 16A

34. Business Expenses

Information pertaining to purchase of alcoholic liquor is reported by tax collector in TCS form 27EQ (quarterly statement). This information is provided by the collector to the taxpayer in Form 27D.

35. Rent payments

Information is reported by person making payment in form 26QC. This information is provided by the deductor to the taxpayer in Form 16C

36. Miscellaneous payments

Information is reported by person making payment in form 26QD. This information is provided by the deductor to the taxpayer in Form 16D. Purchase of bank drafts or pay orders may be reported in Form 61 if PAN is not furnished by the transacting party. PAN is populated based on aadhaar and other attributes of the person

37. Cash deposits

Information pertaining to cash deposits in an account other than current account is reported by reporting entity in form 61A. The information will be shown in AIS of all account holders to enable submission of feedback. Information pertaining to cash deposits in current account is reported by reporting entity in form 61A. The information will be shown in AIS of all account holders to enable submission of feedback.

38. Cash withdrawals

Information pertaining to Cash withdrawals from current account is reported by reporting entity in form 61A. The information will be shown in AIS of all account holders to enable submission of feedback. Sometimes, cash withdrawals from accounts other than current account are reported by the Reporting Entity in SFT-004. The information will be shown in AIS of all account holders to enable submission of feedback. Information pertaining to Cash withdrawals is reported by reporting entity through TDS statement 26Q. This information is provided by the deductor to the taxpayer in Form 16A.

39. Cash payments

Information pertaining to Cash payments for goods and services is reported by reporting entity in form 61A. Information pertaining to Purchase of bank drafts or pay orders or banker’s cheque in cash is reported by reporting entity in form 61A. Information pertaining to Purchase of prepaid instruments in cash is reported by reporting entity in form 61A.

Read More: Important changes in GSTR B w.e.f 1st Sep’ 2022.

40. Outward foreign remittance/purchase of foreign currency

Information of outward foreign remittance is reported by the authorized dealers in form 15CC. Information about Remittance under LRS for an educational loan taken from financial institutions mentioned in section 80E (Third proviso to Section 206C(1G)) is reported by the authorized dealer through TCS form 27EQ for specified foreign remittances made by remitter PAN. Information about Remittance under LRS for purposes other than for the purchase of an overseas tour package or for an educational loan taken from a financial institution (Section 206C(1G(a))) is reported by the authorized dealer through TCS form 27EQ for specified foreign remittances made by remitter PAN.

41. Receipt of foreign remittance

Information relating to the payment of royalty or fees for technical services etc., paid to non-residents is reported by the deductor in form 27Q. This information is provided by the deductor to the deductee (taxpayer) in Form 16A. Information is reported by the authorized dealers in form 15CC for foreign remittances made by remitter PAN. Information of receipt of foreign remittance by a remittee is reported by the authorized dealer in form 15CC.

42. Foreign travel

Information is reported by the deductor in TCS form 27EQ (quarterly statement). This information is provided by the collector to the taxpayer in Form 16D. Payment in connection with travel to any foreign country may be reported in Form 61 if the PAN is not furnished by the transacting party. PAN is populated based on aadhaar and other attributes of the person.

43. Purchase of immovable property

Information relating to immovable property is reported by the Property Registrar through SFT. The information will be shown in the AIS of all buyers to enable the submission of feedback. The buyer at the time of making a payment towards the purchase of property is liable to deduct tax from the amount paid to the seller subject to the threshold applicable. This information is reported in form 26QB. Seller of property reports the details of property buyer in schedule CG of ITR. Payment for the purchase of immovable property may be reported in Form 61 if the PAN is not furnished by the transacting party. PAN is populated based on aadhaar and other attributes of the person.

44. Purchase of vehicle

Information is reported by the deductor in TCS form 27EQ (quarterly statement). This information is provided by the collector to the taxpayer in Form 16D. Payment for purchase of motor vehicle may be reported in Form 61 if the PAN is not furnished by the transacting party. PAN is populated based on aadhaar and other attributes of the person.

45. Purchase of time deposits

Information relating to the Purchase of Time deposits is reported by reporting entity (such as the bank) in the Statement of Financial Transaction (SFT). Information pertaining to investment in Time deposit is reported in Form 61 where PAN is not furnished by the transacting party. PAN is populated based on aadhaar and other attributes of the person.

46. Purchase of securities and units of mutual funds

Information is reported by reporting entity in the Statement of Financial Transaction (SFT). Purchase of shares (including share application money). Information is reported by reporting entity in the Statement of Financial Transaction (SFT). Information is reported by reporting entities (such as mutual fund companies) in the Statement of Financial Transaction (SFT).

47. Credit/Debit card

Information pertaining to the application for issuance of credit/debit card is reported in Form 61 where PAN is not furnished by the transacting party. PAN is populated based on aadhaar and other attributes of the person.

48. Balance in account

Details of bank accounts other than saving and time deposits opened during the year, as reported in Form 61. Bank account with a balance exceeding 50,000 at the closing of the Financial year, as reported in Form 61.

49. Income distributed by business trust

Information relating to income from units of a business trust is reported by the payer in form 27Q. Information is reported on a quarterly basis and is chargeable to tax at a special rate.

50. Income distributed by8 investment fund

This information is reported by the deductor in Form 26Q on a quarterly basis