In the New Annual Information Statement, there will be 50 transactions to disclose in Annual Information Statement(AIS)
So, if you’re going to use your PAN number, be aware of what you’re doing.
The IRS has announced the launch of a new statement called the Annual Information Statement (AIS), which will give you practically all information about your financial transactions throughout the year. The Income Tax Department has been producing Form 26AS to provide information on taxable income and tax deducted at source (TDS) for the past few years, but it will soon be replaced by the Annual Information Statement (AIS). The new AIS statement will provide detailed information on the taxpayer and will be quite helpful when completing a tax return. The data will be available in AIS when duplicate data has been removed, and taxpayers will be able to download it in PDF, JSON, and CSV forms.
If the information is incorrect, refers to another person/year, or is duplicated, a taxpayer can offer feedback online. The Top 50 Transactions to be reported in the New Annual Information Statement are shown below.
1. Salary
In Annexure-II of the TDS statement (24Q) for the previous quarter, the employer presents a thorough breakdown of the salary, perquisites, profits in lieu of salary, and other compensation received to the employee. In Part B (Annexure) of Form 16, the employer also provides this information to the employee (taxpayer). All financial activities are displayed in AIS, including salary income, dividend income, interest income from savings and fixed deposits, sale and purchase of stocks, and so on. It would be simple for a taxpayer to report the correct information in their income tax return if they had access to all of this financial information.
2. Received Rent
Tenants who are responsible for paying rent are required to deduct tax at the source. In Form 26Q, the deductor reports the amount paid/credited, the date of payment, and the details of any tax deductions made. The deductor provides this information to the deductee (taxpayer) on Form 16A. When a tenant (individual/HUF) pays a rent of more than 50,000, the landlord is required to deduct tax from the payment. In Form26QC, the tenant submits details of rent paid, including the amount paid/credited, property information, payment date, and tax deduction information, among other things.
3. Income from dividends
All firms (reporting entities) pay/declare dividends, which are reported in the Statement of Financial Transactions (SFT). Companies that pay or distributes dividends are required to deduct TDS from the amount paid, subject to the Act’s threshold, and report using Form 26Q. (quarterly statement). The deductor provides this information to the deductee (taxpayer) on Form 16A.
4. Savings account interest
Savings account interest is recorded on the Statement of Financial Transactions as paid, credited, or accrued (SFT).
5. Interest from a savings account
When paying/crediting interest on deposits, the bank/deductor is required to deduct tax on depositors paid up to the applicable act’s threshold. The bank/deductor must submit this information on form 26Q. (quarterly statement). The deductor provides this information to the deductee (taxpayer) on Form 16A.
6. Other people’s interest
Interest paid/credited/accrued on non-savings accounts, term deposits, and recurring deposits is recorded in the Statement of Financial Transactions (SFT). When paying/crediting other interest (interest on securities), the bank/deductor is required to deduct tax from depositors paid up to the applicable act’s threshold. The bank/deductor must submit this information on form 26Q. (quarterly statement). The deductor provides this information to the deductee (taxpayer) on Form 16A.
7. Interest on a refund of income tax
Interest on an income tax refund received during the fiscal year is taxable as income from other sources.
8. Lottery or crossword puzzle winnings
From lottery or crossword puzzle winnings, for example, the payer is required to deduct tax at the corresponding rate as set out in the act. TDS form 26Q is used by the payer to report information concerning wins. The data is updated on a quarterly basis. Income is taxed at a reduced rate. The deductor provides this information to the deductee (taxpayer) on Form 16A.
9. Plant and machinery rental
Tenants who pay rent are required to deduct tax at the applicable rate under the Act from the rent they pay. The deductor reports details of plant and machinery rent on TDS form 26Q. The tenant provides rent payment information on a quarterly basis. The deductor provides this information to the deductee
10. Prize money from a horse race
From winnings from a horse race, the payer is required to deduct tax at the applicable rate as set forth in the legislation. TDS form 26Q is used by the payer to report information concerning wins. The data is provided on a quarterly basis and is subject to a particular tax rate. The deductor provides this information to the deductee (taxpayer) on Form 16A.
11. Employer’s accumulated PF balance is received u/s 111.
In Form 26Q, the employer/recognized supplied fund reports information about the accrued balance owed to an employee. The data is provided on a quarterly basis and is subject to a particular tax rate. The deductor provides this information to the deductee (taxpayer) on Form 16A.
12. Infrastructure debt fund interest
In form 27Q, the payer reports information about interest paid. The data is provided on a quarterly basis and is subject to a particular tax rate. The deductor provides this information to the deductee (taxpayer) on Form 16A.
13. A non-interest resident’s in a specified corporation u/s 115A(1)(a) (iiaa)
In form 27Q, the payer reports information about interest paid. The data is provided on a quarterly basis and is subject to a particular tax rate. The deductor provides this information to the deductee (taxpayer) on Form 16A.
14. Bond and government security interest
In form 27Q, the payer reports information about interest paid. The data is provided on a quarterly basis and is subject to a particular tax rate. The deductor provides this information to the deductee (taxpayer) on Form 16A.
15. Income from non-residential units u/s 115A(1)(a) (iiab)
In form 27Q, the payer reports information about income from Non-Resident units. The data is provided on a quarterly basis and is subject to a particular tax rate. The deductor provides this information to the deductee (taxpayer) on Form 16A.
16. Income and long-term capital gain from units held by an offshore fund, as defined in section 115AB(1) (b)
In form 27Q, the payer reports information about income and long-term capital gains from units payable to an offshore fund. The data is provided on a quarterly basis and is subject to a particular tax rate. The deductor provides this information to the deductee (taxpayer) on Form 16A.
17. Foreign currency bonds or shares of Indian companies: income and long-term capital gain u/s 115AC
In form 27Q, the payer reports income and long-term capital gains from foreign currency bonds or shares of Indian companies. The data is provided on a quarterly basis and is subject to a particular tax rate. The deductor provides this information to the deductee (taxpayer) on Form 16A.
18. Income from securities for foreign institutional investors u/s 115AD(1) (i)
In form 27Q, the payer reports information about foreign institutional investors’ securities income. The data is provided on a quarterly basis and is subject to a particular tax rate. The deductor provides this information to the deductee (taxpayer) on Form 16A.
19. Insurance commission
The payer reports information concerning insurance commissions received on a quarterly basis in Form 26Q. The deductor provides this information to the deductee (taxpayer) on Form 16A.
20. Life insurance policy receipts
Section 10(10D) exempts receipts from life insurance policies, subject to certain restrictions. If these conditions are not met, the receipts become taxable, and tax is deducted in accordance with section 194DA. The payer submits the information on a quarterly basis in Form 26Q. The deductor provides this information to the deductee (taxpayer) on Form 16A.
21. Withdrawal of deposits from the national savings scheme
Withdrawals from the National Security System are taxed. Tax is deducted from such withdrawals and reported quarterly by the payer on Form 26Q. The deductor provides this information to the deductee (taxpayer) on Form 16A.
22. Receipt of commissions and other fees from lottery ticket sales
Section 194G of the Internal Revenue Code allows for a tax deduction for lottery commissions. On a quarterly basis, the payer submits Form 26Q with this information. The deductor provides this information to the deductee (taxpayer) on Form 16A.
23. Profit from a securitization trust investment
The income earned from a securitization trust investment is tax-deductible. On a quarterly basis, the payer submits Form 27Q with this information. The deductor provides this information to the deductee (taxpayer) on Form 16A.
24. Income from the MF/repurchase UTI’s of units
The income received by MF/UTI as a result of the buyback of units is subject to a tax deduction under section 194F. On a quarterly basis, the payer submits Form 26Q with this information. The deductor provides this information to the deductee (taxpayer) on Form 16A.
25. Payments to the government in the form of interest, dividends, or other payments
Interest, dividends, and other taxable income are not entitled to tax deduction. On a quarterly basis, the payer submits Form 26Q with this information. The deductor provides this information to the deductee (taxpayer) on Form 16A.
26. Payment to non-resident athletes or sports organisations under section 115BBA
Deductor reports information on amounts paid to non-resident athletes or sports organisations on Form 27Q. The deductor provides this information to the deductee (taxpayer) on Form 16A.
27. Land or building sale
The consideration for the sale of immovable property is recorded in the Statement of Financial Transactions (SFT). All sellers’ information will be displayed in AIS, allowing them to submit comments. When the transacting party does not provide a PAN, the sale of immovable property is also recorded on Form 61. The PAN is generated using the person’s aadhaar number and other personal information. The person making payment for the specified agreement enters into reports information relevant to receipts under the specified agreement. The deductor provides this information to the deductee (taxpayer) on Form 16A.
28. Receipts from the sale of real estate
The buyer of the property reports information on receipts from the transfer of immovable property on Form 26QB. The deductor provides this information to the deductee (taxpayer) on Form 16B.
29. Vehicle sales
When the transacting party does not provide a PAN, the sale of a motor vehicle is reported on Form 61. The PAN is generated using the person’s aadhaar number and other personal information.
30. Securities and mutual fund units are sold.
The estimated sale consideration for the debit transaction in SFT reporting of depository transactions is based on the best possible available price of the asset with the depository (e.g. end of day price). Before filing the return, the taxpayer will be allowed to change the sales consideration and other related information. The estimated sale consideration for the debit transaction in SFT reporting of depository transactions is based on the best possible available price of the asset with the depository (e.g. end of day price). Before filing the return, the taxpayer will be allowed to change the sales consideration and other related information.
31. Debit transactions made outside of the market
The depository publishes details of off-market debit transactions in the SFT reporting of depository transactions. The transaction’s value is calculated using the security’s end-of-day price. If the consideration is available, it is also displayed.
32. Off-market credit transactions
The depository discloses information on off-market credit transactions in the SFT reporting of depository transactions. The transaction’s value is calculated using the end-of-day pricing.
33. Receipts from businesses
The contractee reports information on the amount paid to the contractor on Form 26Q. The deductor provides this information to the deductee (taxpayer) on Form 16A. The recipient of services reports information on the amount paid to the service provider on form 26Q. The deductor provides this information to the deductee (taxpayer) on Form 16A.
34. Costs of doing business
TCS form 27EQ is used by the tax collector to report information on alcoholic liquor purchases (quarterly statement). The collector provides this information to the taxpayer on Form 27D.
35. Rent payments
In form 26QC, the person making the payment reports the information. The deductor provides this information to the taxpayer on Form 16C.
36. Miscellaneous payments
In form 26QD, the person making the payment reports the information. The deductor provides this information to the taxpayer on Form 16D. If the transacting party does not provide a PAN, purchases of bank draughts or pay orders can be recorded on Form 61. PAN is generated using the person’s aadhaar number and other information.
37. Deposits in cash
Form 61A is used by reporting entities to record information on cash deposits in accounts other than current accounts. All account holders’ information will be displayed in AIS, allowing them to submit comments. Form 61A is used by reporting entities to record information on cash deposits in current accounts. All account holders’ information will be displayed in AIS, allowing them to submit comments.
38. Cash withdrawals
The reporting organization must report information on cash withdrawals from current accounts on Form 61A. All account holders’ information will be displayed in AIS, allowing them to submit comments. Cash withdrawals from accounts other than current accounts are occasionally recorded in SFT-004 by the Reporting Entity. All account holders’ information will be displayed in AIS, allowing them to submit comments. TDS statement 26Q is used by reporting entities to submit information on cash withdrawals. The deductor provides this information to the taxpayer on Form 16A.
39. Payments in cash
The reporting company must submit information on cash payments for goods and services on Form 61A. The reporting entity must disclose information on the purchase of bank draughts, pay orders, or banker’s cheques in cash on Form 61A. The reporting company must provide information on the purchase of prepaid instruments in cash on Form 61A.
40. Outward foreign remittances/foreign currency purchases
Authorized dealers must disclose outward foreign remittance information on form 15CC. For specified overseas transfers made by remitter PAN, information concerning remittance under LRS for educational loans received from financial institutions listed in section 80E (Third proviso to Section 206C(1G)) is reported by the authorized dealer using TCS form 27EQ. For specified international transfers made by remitter PAN, information about remittances under LRS for purposes other than the acquisition of an overseas travel package or educational loan received from a financial institution (Section 206C(1G(a)) is submitted by the approved dealer through TCS form 27EQ.
41. Receipt of foreign remittances
Deductor reports information on payments of royalties or fees for technical services, etc., made to non-residents on form 27Q. The deductor provides this information to the deductee (taxpayer) on Form 16A. For overseas remittances made by remitter PAN, information is recorded on form 15CC by the authorized dealer. A remittee’s receipt of foreign remittance is recorded by an authorized dealer on form 15CC.
42. International travel
TCS form 27EQ is used to report information by the deductor (quarterly statement). The collector provides this information to the taxpayer on Form 16D. If the transacting party does not provide a PAN, payments made in connection with travel to any foreign nation may be reported on Form 61. The PAN is generated using the person’s aadhaar number and other personal information.
43. Purchase of real estate
The Property Registrar reports information on the immovable property using SFT. All buyers’ details will be displayed in AIS, allowing them to submit comments. When making a payment toward the acquisition of a property, the buyer is required to deduct tax from the amount paid to the seller, up to the applicable threshold. Form 26QB is used to report this information. In ITR schedule CG, the seller of the property reports the buyer’s information. If the transacting party does not provide a PAN, the payment for the purchase of immovable property may be reported on Form 61. The PAN is generated using the person’s aadhaar number and other personal information.
44. Vehicle purchase
TCS form 27EQ is used to report information by the deductor (quarterly statement). The collector provides this information to the taxpayer on Form 16D. If the transacting party does not provide a PAN, the payment for the acquisition of a motor vehicle can be recorded on Form 61. The PAN is generated using the person’s aadhaar number and other personal information.
45. Purchase of time deposits
The reporting institution (such as the bank) reports information on the Purchase of Time Deposits in the Statement of Financial Transactions (SFT). When the transacting party does not provide a PAN, information on time deposit investments is provided on Form 61. The PAN is generated using the person’s aadhaar number and other personal information.
46. Purchase of securities and mutual fund units
The reporting entity reports information in the Statement of Financial Transactions (SFT). The purchase of stock (including share application money). The reporting entity reports information in the Statement of Financial Transactions (SFT). In the Statement of Financial Transactions, reporting entities (such as mutual fund firms) report information (SFT).
47. Credit/debit card
When the transacting party does not provide a PAN, information on the application for issuance of a credit/debit card is reported in Form 61. The PAN is generated using the person’s aadhaar number and other personal information.
48. Account balance
Details of bank accounts opened throughout the year, other than savings and time deposits, as reported on Form 61. Bank account with a balance of more than 50,000 dollars at the end of the fiscal year, as reported on Form 61.
49. Income distributed by a company trust
In form 27Q, the payer reports information about income from business trust units. The data is provided on a quarterly basis and is subject to a particular tax rate.
50. The income distributed by the investment fund
The deductor reports this information on a quarterly basis in Form 26Q.
So now the income tax department knows more about you, and you must be extra careful in your next ITR file, as well as keep correct records for the above list of goods, as the department may inquire about them .
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