Income tax dept tracks these 46 financial transactions of yours Annual Information Statement(AIS) - 28.12.2021
The newly launched Annual Information Statement (AIS) is a comprehensive statement containing details of 46 of
the financial transactions (income, investment, expenditure) undertaken by you in a financial year (FY). Sujit Bangar, Ex-IRS officer and founder, Taxbuddy.com, an ITR filing website, says, "AIS is an information statement. It provides details of all the income received from various sources irrespective of whether tax has been deducted on such income or not. Further, any investment ..
1. Salary
AIS will show information about the salary amount paid to you along with the tax deducted, if any. It will show the TAN of employer and PAN of employee. The amount mentioned in the AIS will be gross salary including all exempt allowances. Individual will be required to claim exemption and deductions as applicable while filing income tax return (ITR).
2. Rent received
This section includes rent received from various sources. This includes:
If you have given your PAN to your tenant and your tenant has given PAN to his employer to claim HRA exemption.
If you are receiving rent of Rs 50,000 or more per month;
If you have received rent from land, building, machinery etc. where TDS has been deducted at the rate of 10%.
As per the new income tax portal, information for rent received will be summed up at PAN level. Similarly, employer reports the PAN of landlord to whom rent is paid by an employee in Annexure II of the TDS statement. The sum of rent received from all tenants will be reflected in the Taxpayer Information Summary (TIS).
3. Balance in account
Opening of account other than savings account or fixed deposits (e.g., recurring deposit accounts) will be shown in AIS. Further, bank accounts with balance exceeding Rs 50,000 at the closing of financial year will be reflected in AIS.
4. Cash deposits
Cash deposits made in current accounts will be reflected in AIS. Also, cash deposits made in other accounts reported by financial entities, mandated to do so under income tax law, will be reflected in AIS. Form 61A has to be filed by the reporting agency that includes bank, co-operative bank, Post office, NBFC etc.
5. Cash withdrawals
Cash withdrawals made from current accounts will be reflected in AIS. Also, cash withdrawals from other accounts reported by financial entities such as bank, co-operative bank, post office etc., mandated to so under income tax law will be reflected in AIS.
6. Credit/debit card
Any credit/debit card issued to you during the financial year will be reflected in AIS.
7. Dividend
It will show dividends received by you from equity shares, mutual funds. Further, tax deducted by the companies, mutual fund houses will also be reflected in the AIS. Dividend income will be listed on the basis of PAN of the reportee, information source and value.
8. Interest from savings bank
Interest paid, credited or accrued on savings account held by you during the financial year is reported in the AIS. Do keep in mind that interest earned from savings account is taxable in your hands. However, you are allowed to claim 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 any investments in time deposits (such as bank fixed deposits), then such investments will be reflected in AIS. Reporting entity includes bank, NBFC, post office etc.
10. Interest from deposits
This section includes interest received by individuals from various deposits like fixed deposits, recurring deposits. If any tax has been deducted, then it will be reflected as well. Reporting entities, such as banks inform the income tax department about the interest paid/credited/accrued on fixed deposits and recurring deposits. Reporting entities include banks, post office etc.
Interest from fixed deposits and recurring deposits are fully taxable. However, senior citizens and super senior citizens can claim deduction of Rs 50,000 under section 80TTB. This section covers interest received from savings account, fixed deposits, recurring deposits, post office schemes etc.
11. Purchase of securities and units of mutual funds
Buying of shares, bonds, mutual fund units etc. will be reflected in AIS. Information relating to purchase of mutual funds is reported to the income tax department by the AMC.
12. Sale of securities of units and mutual fund
Registrar and Transfer Agents (RTAs) and depositories report sale transactions based on PAN, name and other details etc. of an individual to the income tax department. The capital gains accrued from the sale of units of mutual funds will be classified on the basis of holding period. The capital gains will be reflected in the AIS.
13. Interest from other sources
If you have received the interest from sources other than savings account, term deposits, recurring deposits, then such interest information will be reported to the income tax department by the paying entity. This interest income received from these other sources will also be listed in your AIS.
14. Cash payments
Cash payments made for goods and services, purchase of bank drafts or pay orders or bankers' cheque, prepaid instruments in cash, bullion and jewellery etc. will be reflected in AIS, wherever these payments are made to the reporting entity as mandated under the law.
15. Receipt of accumulated balance of PF from employer u/s 111
If you have withdrawn from provident fund account or have received accumulated balance from your employer, then the amount received will be reflected in the AIS. Do keep in mind that if you have withdrawn more than Rs 50,000 before the completion of five years of service, then tax at source (TDS) will be deducted on the amount. If the withdrawal is made before the completion of five years of continuous service, then the entire amount received will be taxable. If withdrawn after 5 years, it will be exempt from tax.
16. Receipts from life insurance policy
Receipts from life insurance policy are exempted from tax under section 10(10D), provided certain conditions are met. If the conditions are not met, then receipt will be taxable, and TDS will be deducted as well. Amount received from life insurance policy will be shown in AIS. If the proceeds are tax-exempt, then you can report the same while filing income tax return.
17. Withdrawal of deposits from national savings scheme
National Savings Scheme is also known as Post Office Savings Scheme. Money received from these schemes, either prematurely withdrawn or at the time of maturity, will be reflected in the AIS.
18. Interest from income tax refund
The income tax department pays interest on the income tax refund amount. The interest is calculated at the rate of 0.5% per month. The interest received on the income tax refund is taxable in the hands of individual and taxed as 'Income from Other Sources'. If any such refund is received, then it would reflect in the AIS also.
19. Purchase of foreign currency
Foreign currency purchased for the buying of equity shares, debt instruments, real estate etc. or opening of bank account abroad or for travel for pilgrimage, medical treatment, education etc. will be reflected in AIS.
20. Rent payments
AIS will not only show the rent received by you but also rent payments made by you, provided tax has been deducted at the time of making payment. If you are paying monthly rent of Rs 50,000 or more, then you are required to deduct tax at the rate of 5% on the payment made. As a tenant, the total amount paid by you as rent will be reflected in AIS in this situation.
21. Foreign travel
Purchasing of overseas tour package or payment made in connection with foreign travel is reflected in AIS.
22. Purchase of immovable property
During the financial year, if you have bought any immovable property such as house, land building etc. then such purchase will be reflected in AIS.
23. Receipts from transfer of immovable property
The amount received from sale of immovable property such as a house etc. will be reflected in the AIS. The information will be sourced from Form 26QB as reported by the buyer. Form 16B will be issued to the seller for the tax deducted on the amount paid to him/her.
Tax is deducted if the overall payment in respect of such property exceeds Rs 50 lakh.
24. Receipt of foreign remittance
Any payment received by non-residents related to royalty or fees for technical services etc. will be reflected in AIS. Similarly, any other receipt of foreign remittances such as money received due to sale of foreign shares or dividend received from foreign shares etc. will also be reflected in AIS.
25. Rent from plant and machinery
If you are receiving rent from plant and machinery, where tax has been deducted at the rate of two per cent, then such information will be reflected in the AIS as well
26. Winnings from lottery or crossword puzzle u/s 115BB
Winnings from lottery/crossword and any tax deducted on it will be reflected in the AIS. At the time of making payment to the winner of the lottery etc., payer will be required to deduct tax at the applicable rate. Individual will receive Form 16A from the payer reflecting amount paid and tax deducted on it.
27. Winnings from horse race u/s 115BB
Similar to winnings from lottery/crosswords, winnings from horse race will also be reflected in the AIS.
28. Interest from Infrastructure Debt Fund
Interest received from investment made in infrastructure debt fund will be reflected in the AIS. Tax will be deducted at the time of receiving interest payment from infrastructure debt fund. The interest received is taxable under the head 'Income from Other Sources'.
29.Interest from specified Company by a non resident
As a non resident, if you receive interest from specified company under the law , then the amount received will be reflected in AIS. Further, any tax deducted
at the time of making the payment will be reflected as well.
30. Interest on bonds and government securities
Interest received from government securities and/or bonds is taxable in the hands of an individual. Information related to interest paid will be reflected in the AIS. If tax has been deducted on the interest paid, then Form 16A will be issued to individual by the tax deductor.
31. Income in respect of units of non-resident
If a non-resident receives interest income from an Indian company as specified under section 115A(1)(a)(iiab), then interest received will be shown in the AIS. Any tax deducted will be reflected in the AIS and Form 16A will be issued to the non-resident.
32. Income and long-term capital gain from foreign currency bonds or shares of Indian companies
Interest from an Indian company or dividends from Global Depository Receipts as specified under section 115AC of the Income Tax Act, as received by a non-resident, will be shown in AIS.
33. Insurance Commission
Insurance commission received from selling of insurance policy will be shown in AIS.
34. Receipt of commission etc. on sale of lottery tickets
AIS also shows the amount of commission received from sale of lottery tickets. The amount of commission paid is reported by payer of commission via Form 26Q.
35. Sale of land or building
Any amount received from the sale of land or building will be reflected in the AIS. The amount reported in the AIS will be taken from Form 26QB. This is the TDS return form filed by the buyer of the property after deducting tax on the sale consideration paid to the seller. If no tax is deducted on the sale amount, then data will be collected via your PAN which would be furnished by the transacting party. Compensation received on acquisition of immovable property (for e.g. individual receives compensation from government on the land or building acquired by the government) will also be reflected here as well.
36. Off-market debit transactions
The depository and registrar and transfer agents (RTAs) will be required to submit details of off-market transactions (of shares, other securities) to be reflected in AIS. Off-market transactions include gifting of shares, mutual funds, transmission due to death of first holder etc.
37. Off-market credit transactions
Similar to off-market debit transactions, off-market credit transactions will also be reflected in AIS.
38. Business receipts
Receipts related to business income will be shown in the AIS. The information here includes receipts from contract payments, as reported in Form 26Q, fees for professional or technical services, any other commission or brokerage received as reported in Form 26QD. The incomes received are taxable under the head 'Income from business and profession'.
39. Business expenses
Any expenses incurred in conducting business are also reflected in AIS. Expenses that will be shown here are: purchase of alcoholic liquor, timber obtained under forest lease or from any other mode, scrap, commission or brokerage paid, payment for professional services etc.
40. Miscellaneous payments
The miscellaneous payments include - payment made for contract/work, purchase of bank drafts or pay orders, payment to hotel, life insurance premium, credit card etc. These payments would be reported by the entity receiving the payment subject to reporting requirements under income tax laws.
41. Purchase of vehicle
Purchase of a vehicle where tax has been collected from purchaser at time of buying will be reflected in AIS.
42. Income distributed by business trust
Income from units of business trust which is reported by payer in Form 27Q is shown in the recipient's AIS.
43. Income distributed by investment fund
Income from units of investment fund as reported by payer in Form 26Q is shown in AIS of the recipient of the income.
44. Income from investment in securitisation trust
Income from investment made in securitisation trust is subject to tax deduction at source (TDS). The payer reports such information in Form 27Q on a quarterly basis. Therefore, it would reflect in the recipient's AIS
45. Sale of Vehicle
Amount received from the sale of vehicle will be shown in the AIS of the seller.
46. Payment to non-resident sportsmen or sports association under section 115BBA
If any non-resident sportsman or sports association receives income from participating in any game in India (Other than winnings from the game, advertisement and contribution to articles relating to game or sport in India in newspapers, magazines etc.,) then such amount received will be shown in AIS of the recipient of the income.
https://economictimes.indiatimes.com/wealth/tax/income-tax-dept-tracks-these-46-financial-transactions-of-yours-via-the-annual-information-statement/articleshow/88446198.cms
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