India replaced the Income Tax Act 1961, which was in force for over six decades, with the Income Tax Act, 2025 (Act No. 30 of 2025). The President gave his assent on 21 August 2025, and the Act came into force on 1 April 2026. One practical change that all taxpayers should be aware of this year when filing their returns is the fate of the Annual Information Statement (AIS) and how it can be used for filing purposes. Consulting an experienced tax consultant near me in Delhi, helps individuals navigate this verification process seamlessly before finalizing declarations.
What Changed in the New Act
Earlier, the AIS was regulated by Section 285BB of the Income Tax Act, 1961. But, this new legislation relocates the corresponding section to 510 and the transaction details are now officially documented by the means of Form 168, which has been declared under Rule 245 of the Income Tax Rules, 2026. The majority Still still refer to it as AIS or Form 26AS, something that is recognized by the Income Tax Department. For the Assessment Year 2026-27 (which corresponds to the financial year 2025-26), the old AIS format will still be valid. It is from the Tax Year 2026-27 onwards when this Form 168 will be officially used.
Form 168 is not something that a taxpayer can prepare themselves as it is a computer generated document by the Income Tax Department. It is only the Director General of Income-tax (Systems) or any other person authorized by the department who can upload it in your registered e-filing account online. The department is under legal obligation to upload it within 90 days from the end of the month in which they receive the information. These 90 days is a newly introduced, explicit rule which was not there in the 1961 Act.
What the AIS Contains
The statement aggregates data from various sources like banks employers mutual fund houses, brokers, and other reporting entities. It includes several types of incomes like:
- Salary, interest, dividends,
- capital gains,
- mutual fund transactions,
- property purchase/sale,
- foreign remittances,
- TDS and TCS credits,
- advance and self-assessment tax payments,
- tax proceedings (pending and completed),
- GST turnover figures, and
- information obtained through tax treaties and AEOI agreements.
The Taxpayer Information Summary (TIS) is another document that is related to the AIS. It gives you an aggregated, category-wise view of the same data and is what actually pre-fills your ITR form. Both are accessible on the same portal.
When Is AISRelevant?
The AIS system is relevant to all registered Indians filing income tax returns and acts as the foundational platform for pre-filling of digital ITR forms. In this regard, it is important as the final authority during the pre-filing period by requiring reconciliation for:
- Salaried Individuals: Reconciliation of payroll data with corporate TDS filings.
- Investors: Consolidation of gains from short and long positions on multiple platforms.
- Directors: Verification of business transactions and other related sources of income.
How to Access Annual Information Statement (AIS) Under the New Income Tax Act 2025
- Go to the official e-filing portal: https://www.incometax.gov.in.
- Log in using your PAN and password or Aadhaar-linked OTP.
- Once logged in, go to Services and click on Annual Information Statement (AIS).
- Select the relevant financial year or tax year - Part A shows your general details including PAN, masked Aadhaar, name, date of birth, and address. Part B contains the actual transaction data covering TDS/TCS, SFT entries, tax payments, and all other reported information.
- You can download the statement in PDF, JSON, or CSV format.
The Portal Path For forms under the Income Tax Act, 2025: e-File, then Income Tax Forms, then File Income Tax Forms, then Forms under Income Tax Act, 2025.
What to Do Before Filing an Annual Information Statement (AIS) Under the New Income Tax Act 2025
Open your AIS well before the filing deadline. Go through every entry and match it against your own records: salary slips, bank statements, broker ledgers, and mutual fund statements. The Income Tax Department has recently asked banks, mutual funds, and other reporting entities to tighten the quality of their SFT filings before the 31 May 2026 deadline. Errors from reporting entities do appear in AIS, and it is the taxpayer's responsibility to flag them.
If anything in your AIS is wrong, duplicated, or does not belong to you, use the online feedback option within the AIS portal. The system logs each submission with a unique Activity ID, and you receive email and SMS confirmation. Track the status under Activity History.
Once you are satisfied the data is accurate, the TIS values will pre-fill your ITR automatically.
One rule that has not changed is that you must report all income in your ITR, even if it does not appear in your AIS. AIS reflects what third parties have reported. Any mismatch between your ITR and your AIS remains a common trigger for scrutiny notices.
When Can It Be Challenged?
Because the portal aggregates data from third-party reporting entities via the Statement of Financial Transactions (SFT), administrative errors occur frequently. A taxpayer has the legal right to challenge AIS entries when data is:
- Duplicated: The same transaction is reported multiple times by a bank or financial institution.
- Inaccurate: The reported asset value or sales consideration does not match your signed sale deeds or ledger books.
- Mismatched: Jointly held property transactions are mapped entirely onto a single PAN instead of being split accurately
Practical Implications Across Key Metros
Financial profiles vary heavily by region, and the data points targeted by automated compliance tracking reflect these local realities.
- Delhi Salaried Employee
A corporate executive in Delhi must verify that their house rent allowance (HRA) claims and standard deductions match the employer data captured in the statement. Unreported high-value credit card expenditures or forgotten interest from old bank accounts will cause an immediate mismatch notice.
- Mumbai Stock Market Investor
For active traders navigating high-volume equity and derivative markets, the platform captures every single transaction. Ensuring that your broker’s capital gains statement reconciles perfectly with the numbers summarized in the TIS is non-negotiable to prevent major asset misreporting.
- Bangalore Startup ESOP Holder
Tech professionals in Bangalore exercising Employee Stock Ownership Plans (ESOPs) face rigorous tracking. The system monitors perquisite tax calculations, foreign remittances, and unlisted share holdings, making precise disclosure vital. If you need specialized guidance, a trusted tax advisor in Bangalore can help map these complex corporate stock options correctly.
Frequently Asked Questions (FAQs)
- What is AIS in simple terms?
The Annual Information Statement (AIS) is a digital financial ledger issued by the tax department that tracks every major transaction linked to your PAN, including investments, interest, and asset sales.
- Can AIS be denied even if tax is paid?
An entry in your statement cannot be deleted arbitrarily; however, if a third party reports incorrect data, you can file an online objection to modify the active figures used for your return.
- What documents are required to reconcile AIS?
You will need your bank account statements, salary certificates (Form 16), broker capital gains logs, and property contract deeds to verify your portal information.
- What are the consequences of ignoring AIS mismatches?
Filing an ITR that under-reports the financial transactions listed in your statement triggers an automated mismatch flag, leading to processing delays, interest penalties, and formal tax scrutiny notices.