What is tis in income tax

ANNUAL INFORMATION STATEMENT (AIS) The AIS is a comprehensive statement containing details of all the financial transactions undertaken by you in a financial year (FY). It contains the information relating to income earned from various sources such as salary, dividend, interest from savings account, recurring deposits, sale and purchase of equity shares, bonds, mutual funds etc. The statement also contains information related to TDS, TCS. TAXPAYER INFORMATION STATEMENT (TIS) The TIS is a generation of Taxpayer Information available in AIS in a simplified format. TIS contains category-wise aggregated information summary for a taxpayer. It shows processed value (i.e., the value generated after processing of information) and derived value (i.e., the value derived after considering the taxpayer feedback and processed value) under each information category (e.g., Salaries, Interest, Dividend etc.). OBJECTIVE OF AIS The objective of AIS is (i) Provide comprehensive tax information to the taxpayer (ii) Promote voluntary compliance and enable seamless prefiling of return. SALIENT FEATURES OF (i) Inclusion of various detailed information about the taxpayer. (Interest, dividend, securities transactions, mutual fund transactions, foreign remittance information etc.) (ii) AIS can be download information in PDF, JSON, CSV file formats. (iii) AIS allows taxpayers to submit feedback about information stated inAIS in both online and offline mode. (iv) Income tax department will launch AIS...

The transaction in securities rules are legislation aimed at schemes which look to turn income into capital and thereby benefit from a lower tax charge ie a tax advantage. The rules apply mainly to income tax and are particularly relevant when a company is returning capital to its shareholders. Paying out accumulated reserves through a capital transaction can result in a beneficial capital gains tax (CGT) rate when compared to paying out dividends. The TiS rules for corporation tax are largely obsolete now. The TiS legislation targets arrangements very broadly, by providing that the regime will apply where there is a transaction in securities (this essentially includes all transactions involving shares or securities ― eg a sale of a company), the main purpose, or one of the main purposes, of the transaction is to obtain a tax advantage and the person concerned receives ‘relevant consideration’. Relevant consideration’ usually means the value of reserves available for distributions as a dividend by the company subject to the TiS and any companies it controls. In practice, a company liquidation should not represent a TiS if the liquidation occurs in isolation and is not part of a series of transactions which together represent a TiS. Although the phoenix targeted anti-avoidance rules (TAAR) may apply to certain company distributions in respect of share capital on a winding up. There are exclusions that apply in an effort to prevent genuine commercial transactions from being ...

Over the past few years, the tax filings in India have become digital and due to the requirement of furnishing a permanent account number (PAN) for any major financial transaction, the tax authorities have access to a lot of information regarding the tax filers. Form 26AS and Annual Information Statement (AIS) are important documents which are made available by the income tax authorities to the tax filers using technology and the information collated from the above. It is important that before furnishing their tax returns, the tax filers review the same and reconcile their financial data to avoid unwarranted notices and tax demands. Taxpayers initially referred to Form 26AS for reconciling their tax details, especially tax deducted at source (“TDS”) and tax collected at source (“TCS”) credits, etc. However, in order to promote transparency and simplifying the tax return filing process, the Central Board of Direct Taxes (CBDT) expanded the scope of Form 26AS by way of introducing AIS and Taxpayer Information Summary (TIS) to help provide a complete profile of the taxpayer for a particular year. Here’s a deep dive into what the Form 26AS, AIS and TIS are and how to use them for filing taxes. What is Form 26AS? Form 26AS is an Annual Tax Statement, specific to a Permanent Account Number (PAN) furnished in accordance with erstwhile Section 203AA read with second provision to section 206C(5) of the Income Tax Act, 1961 (hereinafter referred to as the ‘IT Act’) and erstwhile Rul...

On 1 st November, 2021 Income Tax Department has rolled out the new AIS (Annual Information Statement) on Compliance Portal which provides comprehensive view of financial transaction done by taxpayer ( i.e. PAN based transactions) in a Financial Year at one place. This includes information relating to Interest, Dividend, Business receipts, Cash deposits/withdrawals, Sale/ Purchase of Securities and units of mutual funds, investments in govt. bonds, Along with AIS income tax department also introduced TIS (Taxpayer Information Summary). TIS provide summarised view of information provided in AIS for the taxpayer for ease of return filling. TIS show the processed value and derived value (i.e. the value derived after considering the taxpayer feedback and processed value). The derived information in TIS will be used for pre-filling of return. Taxpayer will be able to download AIS in PDF, JSON, CSV formats. If taxpayer feels that information shown in AIS is incorrect, duplicate, non-taxable, relates to other person/ year, etc. then, an added functionality of accepting online feedback from taxpayer, which helps taxpayer to correct and amend the information. Taxpayer can also upload feedback in offline manner by using AIS utility. If taxpayer submits feedback on AIS, the derived information in TIS will be automatically updated in real time. The new AIS has been launched with aims to achieve transparency in tax system and simplify return filling. The Income Tax Department might rep...

How to Correct or Modify or Deny Wrong information in Annual Information Statement in Income Tax The new Form 26 AS is an Annual Information Statement or AIS which will provide a complete profile of the taxpayer for a particular financial year. To promote transparency and simplifying the tax return filing process, CBDT has amended Form 26 AS (vide Notification dated May 28 2020). New information sources, not available in the current Form 26AS, have been added in AIS. Taxpayer can provide feedback on information displayed in AIS, further can also deny or approve the correctness of the information captured from third party The Agency providing information to Income Tax Department can be Banks, Financial Institutions, Registrar of Properties, etc. Many times information provided by them can be incorrect or wrong. In all such cases AIS needs to be corrected before filing your tax returns so that you do not receive notices or intimation for mis match from Income Tax Department. Click here to know Why checking AIS is Compulsory Before Filing your Income Tax Returns Currently the Income Tax Department Tracks 50 different Information, AIS and TIS Overview Annual Information Statement is comprehensive view of information for a taxpayer displayed in Form 26 AS. Taxpayer can provide feedback on information displayed in AIS Taxpayer Information Summary is an information category wise information summary for a taxpayer. The same is updated based on the feedback provided by taxpayer in ...

With less than a month left for the 31st December deadline for filing Income Tax Return for FY 2020-21, it is wise to gear up and begin the return filing process now (if you have not already) to avoid last-minute hassles and panic situations. In order to simplify the process of return filing,income tax departmenthasrecentlyintroduced Annual Information Statement(AIS) andTaxpayer Information Summary(TIS).AIS is aconsolidated annualtax statementcontaininginformationof the taxpayer’s financial transactions carried out during the year.TIS is a category-wise information summary ofthetaxpayer.Both AIS and TIS aim towards curbing tax evasion, promoting transparency and simplifying the existing return filing process. So, this year, the processof filing income tax returnshould begin withdownloadingAIS, TIS andForm 26AS fromtheincome tax e filing portal andverifying thatthe information displayed inAIS, TIS and Form 26ASmatches with the actual financial transaction undertaken by you during the financial year. This means you need to carefully access and verifyall three documentsfor filing tax returns this year. And, in case of anydiscrepancies in AISand TIS,you need tosubmit online feedbackto rectify the same. In this article, we will talk aboutTaxpayer Information Summary. What is Taxpayer Information Summary (TIS)? Taxpayer Information Summary is a summarised and simplified way of viewing the information from the Annual Information Statement. TISis a derivative ofAIS. Why do we say ...

“The choice of the appropriate ITR form primarily depends on your sources of income. For instance, if you are a salaried individual, you can file returns using ITR Form 1. However, if you have both salaried income and capital gains from investments, you should use ITR Form 2. On the other hand, if you are self-employed with business profits as your income source, you should file your returns using ITR Form 3," said Archit Gupta, Founder & CEO, Clear 2) Interest income Another critical mistake to avoid is failing to report income from all sources. Include income from salary, business/profession, house property, capital gains, and investments. “Omitting any income can attract penalties and scrutiny from tax authorities. Likewise, make sure to claim eligible deductions and exemptions under various sections of the Income Tax Act, such as Section 80C and Section 80D, to reduce your taxable income," said Amit Gupta, MD SAG Infotech. If you have foreign assets or income, comply with FEMA regulations and disclose the necessary details. Also, disclose all bank accounts, including foreign accounts, while filing your tax return, Amit Gupta added. 3) Failure to pre-validate your bank account When If not done, the income tax department will not be able to credit the income tax refund owed to you, said Archit Gupta. 4) Selecting the wrong assessment year Many taxpayers confuse the terms "Assessment Year" and “Financial Year.". The "financial year" refers to the period during which incom...

The The What is Taxpayer Information Summary (TIS)The Taxpayer Information Summary (TIS) is an information summary for a taxpayer that has been aggregated by category. Under each information category, it displays processed value i.e. value produced as a result of information deduplication based on pre-established rules and derived value i.e. value arrived at after taking taxpayer feedback into account and processed value. The derived information in the TIS will be used for prefilling of return, if applicable. • Amount (Reported, Processed, Derived) How to download TISStep 1: Login to Income tax portal Step 2: Go to ‘services’ and click on Annual Information Statement Step 3: Click on ‘Proceed’ and click on tab ‘AIS’ Step 4: In the next page, click on ‘Taxpayer Information Statement’ Step 5: Click on ‘Download’ tab The PDF that you download will be password-protected. What is the password to open TIS?You must enter the PAN (in lower case) and either the date of incorporation or formation for non-individual taxpayers or the date of birth for individual taxpayers in the format ddmmyyyy without a space in order to open the file. For example, if your PAN is AAAAA1234A and your birthdate is January 21, 1991, your password will be aaaaa1234a21011991. Once you download the TIS, you will find statement which includes the disclaimer: “Taxpayer Information Summary (TIS) includes information presently available with Income Tax Department. There may be other transactions relating to th...

Section 194C of Income Tax Act, 1961: An In-Depth Guide to Tax Deduction on Payments to Contractors The concept of Tax Deducted at Source (TDS) has been introduced with the aim of collecting tax at the source of income. It is an indirect method of tax collection that combines the principles of “pay as you earn” and “collect as it is being earned.” The responsibility for tax deduction lies with the payer when making payments of specific nature to a specified recipient. One such specific payment is payment for a work contract. In this write-up, I have attempted to analyze the provisions of Section 194C of the Income-tax Act, 1961, in a question-and-answer format. When are the provisions of section 194C applicable? The provisions of this section are applicable when the following conditions are met: 1. Payment to Contractors: When any payment is made to a resident contractor or subcontractor; 2. Nature of Payment: The payment should be in the nature of a “work contract”; and 3. Threshold Limit: When the total payment or aggregate payments made to a contractor or subcontractor in a financial year exceed a specified threshold. What is the meaning of Work for section 194C? Work, for deduction tax at the source, has been defined inclusively. When a definition is inclusive, it means that the term being defined includes not only what is explicitly mentioned but also other similar or related elements that may fall within the general understanding of the term. As per explanation (iv) ...

Over the past few years, the tax filings in India have become digital and due to the requirement of furnishing a permanent account number (PAN) for any major financial transaction, the tax authorities have access to a lot of information regarding the tax filers. Form 26AS and Annual Information Statement (AIS) are important documents which are made available by the income tax authorities to the tax filers using technology and the information collated from the above. It is important that before furnishing their tax returns, the tax filers review the same and reconcile their financial data to avoid unwarranted notices and tax demands. Taxpayers initially referred to Form 26AS for reconciling their tax details, especially tax deducted at source (“TDS”) and tax collected at source (“TCS”) credits, etc. However, in order to promote transparency and simplifying the tax return filing process, the Central Board of Direct Taxes (CBDT) expanded the scope of Form 26AS by way of introducing AIS and Taxpayer Information Summary (TIS) to help provide a complete profile of the taxpayer for a particular year. Here’s a deep dive into what the Form 26AS, AIS and TIS are and how to use them for filing taxes. What is Form 26AS? Form 26AS is an Annual Tax Statement, specific to a Permanent Account Number (PAN) furnished in accordance with erstwhile Section 203AA read with second provision to section 206C(5) of the Income Tax Act, 1961 (hereinafter referred to as the ‘IT Act’) and erstwhile Rul...