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Time of India
2 days ago
- Business
- Time of India
ITR e-filing AY 2025-25: What is Annual Information Statement (AIS) and how is it different from Form 26AS? Top points for taxpayers
ITR filing FY 2024-25: When filing your income tax return for FY 2024-25 (AY 2025-26), the Annual Information Statement is an important document that every taxpayer should be aware of. Tired of too many ads? go ad free now Introduced a few years ago, the Annual Information Statement is a helpful document for transparent and easy tax compliance. The Annual Information Statement serves as a crucial document that displays comprehensive details of a taxpayer's financial transactions throughout the fiscal year. The Annual Information Statement (AIS) and Form 26AS are tools provided by the Income Tax Department to help taxpayers with accurate tax reporting. Individuals paying taxes have the ability to cross-check their income sources and ensure they align with their Form 16, Form 16A or personal financial records. The AIS system enables taxpayers to identify any inconsistencies in their declared income or tax remittances. Also Read | As AIS effectively records the majority of income sources, it aids in preventing omissions and understatements, thereby reducing the likelihood of tax avoidance penalties or evasion charges. To view their AIS, taxpayers need to visit the official e-filing website at and sign in with their account details. The statement is accessible under the 'Services' section, where users can select 'Annual Information Statement'. Users have the option to obtain their yearly statement in either PDF or JSON formats for their preferred financial year. What is the Annual Information Statement (AIS)? Sudhakar Sethuraman, Partner, Deloitte India explains that AIS is a comprehensive report capturing a taxpayer's financial transactions during a financial year such as interest income, dividends, securities transactions, and foreign remittances, offering a broader view of income sources. These transactions are reported in AIS even if there is no associated tax deduction/ collection at source (TDS/TCS). AIS allows the taxpayer to provide feedback on the transactions reported therein. The tax office considers the feedback provided by the taxpayer and AIS is updated to show original and modified values based on this feedback. There is also a facility to view all feedback provided in the form of 'AIS Consolidated Feedback' file which can be downloaded from the portal. As AIS provides securities-related transactions, it aids in comparison of the information reported in AIS with the information provided by the demat account. Securities transactions can be downloaded into excel and can be used for uploading into tax returns in the relevant sections (capital gains/business income). How is AIS different from Form 26AS? Sudhakar Sethuraman explains that unlike AIS, Form 26AS is more oriented towards TDS/TCS. Tired of too many ads? go ad free now It provides a list of incomes (such as salary, interest), TDS/TCS on these and types of tax payments such as advance tax. 'Form 26AS helps taxpayers verify the taxes paid in various forms (such as TDS, TCS, advance tax, self-assessment tax) and the total tax credit available for the relevant financial year,' Sudhakar Sethuraman tells TOI. In short, AIS gives a detailed overview of income and transactions, while Form 26AS focuses on taxes. Also Read |
Time of India
3 days ago
- Business
- Time of India
Income Tax Return e-filing: Can you keep switching between new and old tax regime every year? What taxpayers should know
The new income tax regime offers lower tax rates and higher standard deduction compared to the old tax regime. (AI image) ITR filing FY 2024-25 (AY 2025-26): When filing your income tax return every year, the choice between the old and the new income tax regime is an important one. The new income tax regime offers lower tax rates and higher standard deduction compared to the old tax regime. On the flip side, the old tax regime allows for popular deductions and exemptions like Section 80C, 80D, House Rent Allowance (HRA), Leave Travel Allowance (LTA) and more. As your financial situation evolves over years, you may find it beneficial to be in the old regime versus the new or vice-versa. What if you opted for the new tax regime last year, but realise that for this year's ITR filing the old tax regime results in lower tax outgo? A common question that taxpayers have is: can they choose between the new and old income tax regime every year, or is it a one time choice? Also Read | ITR filing FY 2024-25: Do you need to file your income tax return if TDS has been deducted? Explained Old vs New Tax Regime: Can you switch every year? According to Sudhakar Sethuraman, Partner at Deloitte India, the Income-tax Act, 1961 allows individual taxpayers (who do not have business income) to choose between the regular (old) and simplified (new) tax regimes each financial year. 'The choice of income tax regime is at the discretion of the individual and they can choose every year (provided they don't have business income) depending on what is beneficial for them,' he tells TOI. Sudhakar Sethuraman goes on to explain, 'Further, even if an individual had declared one tax regime to the employer for TDS purposes, he/she can change the choice of tax regime at the time of filing tax return (if he/she does not have business income).' It's important to note that the new income tax regime is now the default tax regime. In case you wish to file ITR under the old income tax regime, then you will have to opt for it. This can either be done at the start of the financial year by informing your employer, or at the time of filing the income tax return. Yet another fact that is of consequence is: you can opt for the old income tax regime at the time of ITR filing only if you file your tax return within the due date. Once the deadline to file ITR is crossed, you will automatically be switched to the new income tax regime. Also Read | ITR filing FY 2024-25: Several changes in Form 16! Top things salaried taxpayers shouldn't miss Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
