When you sit down to file your income tax return, it may seem like you are providing an account of the government on your finances throughout the year. But the reality is that most of this data is already lying with the Income-tax Department. All thanks to forms like Form 26AS and the Annual Information Statement (AIS), your earnings, tax deposits, and significant financial transactions are all available to the department. Knowing these forms will assist you in filing your taxes correctly and prevent you from facing nasty surprises in the form of mismatch notices or delays in processing.
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What Form 26AS Informs You
Form 26AS is your passbook for taxes. It brings together all the tax information associated with your PAN, including the tax deducted at source (TDS) by your bank or employer or, the advance tax or self-assessment tax you paid, and even the tax collected at source (TCS) on certain transactions. It indicates any refund made by the department as well. In short, it assists you in confirming whether the taxes paid on your account or by yourself align with your own records.
You can get this form using the TRACES portal by logging into the Income Tax e-filing site.
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A Broader Perspective With the AIS
The Annual Information Statement, or AIS, was introduced in 2021 to provide a broader view of your financial footprint. It encompasses all the data present in Form 26AS and takes it a few steps ahead. For example, it includes your interest income from fixed deposits and savings, stocks and mutual fund dividends, profit on the sale of assets, rent earned, and even foreign remittances. If you are engaged in business, your GST turnover can also be included here.
The AIS is intended to provide taxpayers with a better idea of what the tax authority already has. It even lets you provide feedback in the event that any transaction shown does not pertain to you or is incorrect. This comes in useful if, for instance, interest income from a bank is shown under your PAN because of a typographical mistake.
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Why These are Important
Verification of both Form 26AS and AIS prior to filing your return makes sure that what you provide to the tax department is consistent with what they already hold. Discrepancies can cause refunds to be postponed or notices requesting clarification. They also enable you to identify any income that you have possibly overlooked, like interest on older fixed deposits or dividends posted to your demat account.
In the last few years, the Income Tax Department has been increasingly depending on technology and data matching. So, discrepancies between your reported and actual income are likely to be flagged. By cross-verifying your returns with Form 26AS and AIS, you are ahead of the game.
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How to Access Them
The AIS, as well as the Form 26AS, can be downloaded online. Once you are logged in to the Income Tax e-filing portal, you can access Form 26AS through the 'e-file' tab. It will take you to the TRACES website, where you can see or download it. For AIS, there is an individual link on the portal dashboard that leads to the AIS utility, where you can see and download the complete statement.
What to Do if You Spot an Error
If you come across errors in Form 26AS, like non-reporting of TDS entries, the ideal method is to contact the deductor—most likely your company, bank, or the organisation that deducted. For AIS, you can give feedback directly via the portal as well. There are choices to indicate entries as incorrect, partially correct, or not applicable to you. The department may then revalidate the data.
It is also a good idea to have supporting documents in hand—like Form 16, bank interest certificates, and capital gains statements from mutual fund websites—so that you can quickly refer to them while checking these forms or replying to any discrepancies.
Maintain Records During the Year
Although these documents are most useful during tax filing season, it’s good practice to check them periodically during the year. This helps catch any wrong entries early and ensures there are no last-minute surprises. Being proactive also makes it easier to plan your taxes better, especially if you’re required to pay advance tax.
Form 26AS and AIS are tax forms, but they represent much more than that. They represent the degree to which your financial information is already tracked and reported. By checking them out carefully, you can make sure your tax return is complete, accurate, and less likely to prompt questions.
