31 Mar
The Income Tax Department tracks your 30 important financial transactions through its annual information statement
The Income Tax Department tracks your 30
important financial transactions through its annual information statement
The newly launched Annual Information Statement (AIS) is a
comprehensive statement containing 30 details
Important financial transactions (income, investments,
expenses) that you have made in FY. "AIS is an information statement. It
provides details of all income received from various sources, regardless of
whether such income has been tax-deductible. Further, any investment you make
will also be reflected in AIS."
Here's a look at 30 key financial transactions that are
reflected in the AIS, according to the income tax website.
1. Salary
AIS will show you the amount of salary payable and if any, the
tax deduction will be made. The amount mentioned in AIS will be the total
salary including all discount allowances. It is necessary to claim exemption
and deduction as applicable while filing an income tax return (ITR).
2. Rent received
This section covers rents from various sources. Including:
· If you
have given your PAN to your tenant and your tenant has given the PAN to his
landlord to claim HRA suit.
· If you
are getting rent of Rs. 50,000 or more per month;
According to the new income tax portal, rent information
has been received.
3. Account balance
Account openings (e.g. recurring deposit accounts) other
than savings accounts or term deposits will be shown in AIS. Further, at the
end of the financial year, bank accounts with a balance of more than Rs. 50,000
will appear in AIS.
4. Cash deposits
Cash deposits made in current accounts are also will be
reflected in AIS. Also, cash deposits made in other accounts reported by
financial institutions, which are required to do so by income tax law, will be
reflected in the AIS. Form 61A has to be filled by the reporting agency which
includes Bank, Co-operative Bank, Post Office, NBFC etc.
5. Withdrawal of cash
Cash withdrawn from the current account will appear in AIS.
Also, withdrawal of cash from other accounts reported by financial institutions
such as banks, co-operative banks, post offices, etc., will appear in the
binding AIS as per the Income Tax Act.
6. Credit/debit card expenses
Any credit/debit card issued to you during the financial
year will appear in AIS.
7. Dividends received
This will show you the dividends you have received from
equity shares, mutual funds. Further, the tax deducted by companies, mutual
fund houses will also be reflected in the AIS. Dividends will be listed on the
basis of income reporting PAN, source of information and value.
8. Interest from Savings Bank
Interest accrued, credited or accrued on your savings
account during the financial year is recorded in AIS. Keep in mind that
interest earned on a savings account is taxable in your hands. However, you are
allowed to claim a deduction of up to Rs 10,000 under section 80TTA except for
senior citizens and super citizens.
9. Purchase of time deposits
If you have made an investment in time deposits (such as
bank term deposits), such investments will appear in AIS. Reporting bodies
include banks, NBFCs, post offices, etc.
10. Interest on deposits
This section covers interest earned by individuals on
various deposits such as term deposits and recurring deposits. If any tax is
deducted, it will also be reflected.
11. Purchase of Shares and Mutual Funds
Purchase of shares, bonds, mutual fund units, etc. will
appear in AIS. Information relating to the purchase of a mutual fund is
communicated to the Income Tax Department by the AMC
12. Sale of units and mutual fund securities
Registrars and Transfer Agents (RTAs) and Depositories
report sales transactions to the Income Tax Department based on a person's PAN,
name and other details. Capital gains accrued from the sale of mutual fund
units will be classified on the basis of the holding period. Capital gains will
be reflected in AIS.
13. Interest from other sources
If you have received interest from sources other than
savings accounts, term deposits, recurring deposits, such interest will be
reported to the Income-tax Department by the payer. This interest income from
these other sources will also be listed in your AIS.
14. Cash payments
Cash payments for goods and services, bank drafts or pay
orders or bankers checks, prepaid equipment in cash, bullion and jewellery etc.
Will be reflected in the AIS, where these payments are made to the reporting
body as required by law.
15. Receipts of life insurance policy
Receipts of a life insurance policy are exempt from tax
under section 10 (10D), if certain conditions are met. If the conditions are
not met, the receipt will be taxable and TDS will also be deducted.
16. Purchase of foreign currency
Foreign currency purchased for the purchase of equity
shares, debt instruments, real estate, etc., or for opening a bank account
abroad, or for pilgrimage, medical treatment, education, etc., will be
reflected in the AIS.
17. Rent payments
AIS will not only show you the rent you received, but also
the rent you paid, if the tax has been deducted while making the payment. If
you are paying a monthly rent of Rs. 50,000 or more, you are required to deduct
tax at the rate of 5% on the payment made. As a tenant, the total amount you
paid as rent will appear in AIS in this case.
18. Travel abroad
Payment for the purchase of a foreign travel package or for
foreign travel is reflected in the AIS.
19. Purchase of real estate
During the financial year, if you have purchased real
estate like a house, land, building etc., such purchase will appear in AIS.
20. Receipts for transfer of immovable property
Proceeds from the sale of real estate like houses etc. will
be reflected in AIS. Information will be obtained from Form 26QB as reported by
the buyer. Form 16B will be issued to the seller for deduction of tax on the
amount paid by him/her.
Tax is deducted if the total payment for such property
exceeds Rs 50 lakh.
21. Receipt of foreign remittances
Any payments received by non-residents related to royalties
or fees for technical services etc. will be reflected in the AIS. Similarly,
any other receipts of foreign remittances such as proceeds from the sale of
foreign shares or dividends received from foreign shares etc. will also appear
in AIS.
22. Insurance Commission
The insurance commission received from the sale of the insurance
policy will be shown in AIS.
23. Sale of land or building
Any proceeds from the sale of land or building will be
reflected in the AIS. The amount registered in AIS will be taken from Form
26QB. This is a TDS return form after the property buyer deducts tax on the
sale price paid to the seller.
24. Off-market debit transactions
Depository and Registrar and Transfer Agent (RTA) will be
required to reflect the details of out-of-market transactions (shares, other
securities) in AIS.
25. Off-market credit transactions
Similar to off-market debit transactions, off-market credit
transactions will also be reflected in the AIS.
26. Receipts of business
Receipts related to business income will be displayed in
AIS. The information here includes any commissions or brokerages received as
reported in Form 26Q, charges for commercial or technical services, as recorded
in Form 26QD. The income received is taxable under the heading 'Business and
business income'.
27. Business expenses
Any costs incurred in running a business are also reflected
in the AIS. Expenses shown here are purchase of alcoholic liquor, wood obtained
on forest lease or any other means, scrap, commission or brokerage, payment for
commercial services etc.
28. Miscellaneous Payments
The various payments include - payment for contract/work,
purchase of bank draft or pay order, payment to the hotel, life insurance
premium, credit card etc. These payments will be reported by the receiving
organization under the income tax report as required. Laws
29. Vehicle purchase
The purchase of a vehicle for which tax has been collected
from the purchaser at the time of purchase will be reflected in the AIS
30. Interest on income tax return
The income tax department pays interest on the income tax
return amount. Interest is calculated at the rate of 0.5% per month. Interest
earned on an income tax return is taxable in the hands of the individual and is
taxed as 'income from other sources. If any such refund is received, it will
also appear in AIS.
Author
Santosh Patil
ICA & MBA
Founder of Alliance Tax Experts
One-Stop Solutions for All Financial Needs
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