what is ais in income tax

What is AIS in Income Tax? Learn the full details

If you've ever filed an Income Tax Return (ITR) or are preparing for it for the first time, you've likely heard the question, "What is AIS in Income Tax?" AIS, or Annual Information Statement, is a new feature of the Income Tax Department that provides complete information about all your financial transactions in one place. This system records how much income you earned from which sources throughout the year and where you spent or invested it.

Annual Information Statement (AIS) covers every bank transaction, stock market trading, mutual fund investments, deposits and withdrawals, foreign travel, credit card expenses, and other financial activities linked to your PAN card. This statement can be downloaded online by logging into the Income Tax Department website. This allows taxpayers to view accurate data when filing their ITR, reducing the likelihood of errors.

Understanding AIS is also important because the Income Tax Department now matches most information with your AIS report. If you have concealed your income or investments, the department will automatically detect it. Furthermore, if you find any incorrect information in your AIS, you can propose corrections through the “Feedback” option on the portal.

Tip: Be sure to reconcile all your income and investment records using AIS to ensure your tax filing is error-free and avoid receiving notices or penalties.