All you need to know about AIS (Annual Information Statement)

Taxation
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What is AIS?

Up until now, Form 26AS served as a consolidated annual tax statement. AIS will include all the information that is mentioned in the Form 26AS along with the information related to securities & mutual fund transactions, interests, dividends and more.

What is its use?

Taxpayers need to carefully check all the transactions reflected in the AIS and make necessary amends (if any) because this information will be vital for filing ITR.
In case of any mismatch in the TDS/TCS details displayed on Form 26AS and AIS – at present, it is recommended to follow Form 26AS available on TRACES.

Why does trading data in AIS not match with Trading data in your Broker statement?

Following may be the reasons for discrepancies in the AIS data and the trading data:

  1. The estimated cost of acquisition for the credit is determined on the best possible available price with the reporting entity. As a result of which, data on sale/purchase of shares is showing the day’s closing prices rather than prices at which the sale/purchase was executed.
  2. The estimated cost of acquisition is taken as NIL for OFF Market credits in AIS. This may affect correct valuation of gift transactions.
  3. AIS Data is showing pledged shares as sale of shares.
  4. AIS is showing only the total purchase & the total sales value of securities. It doesn’t show previous year holding as a result of which capital gains are mismatched.
  5. Duplication of Entries may happen. Further, it may happen that the information relates to another person/year.
  6. The difference in the Amount column of source wise aggregated information of one or two rupees may be occurring because of rounding off of decimals.

You can read up more on AIS in the following article.

8 Likes
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Hi @gaurav_choudhary

Your F&O transactions (profits/losses) are not shown in either AIS or Form 26AS. They will be shown in the broker statement.

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Hi @gaurav_choudhary

Since your broker reports all the transactions of a particular PAN, the ITD has the data for the same.

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I had purchased some share from market and sold it in short term as well as in long term but AIS shows thease details as OFF MARKET transactions and made cost of acquisition as 0 why did it happen ? did it happen because I had given POA to my broker so he somehow misused the Share either by pledging it without knowing to me ?

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Hi @aashutoshg2007

If you feel the information is incorrectly reflected in your AIS, you can provide a feedback.

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I have already submitted the Feedback but my question is not related to weather information is correct or not.my concern is that why it is showing as OFF MARKET transaction as all transactions was MARKET transaction. It is clearly violations of POA. My thought is that he pledged the share and misuse the fund and when I sold the share than it reflects as OFF MARKET transaction.Can it be possible ?

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Hi @aashutoshg2007

The thought process mentioned by you is quite impossible.
The AIS still shows some incorrect data. Hence if you have provided feedback, that is enough.

1 Like
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Further, it does not show IPOs sold on the listing day since I suppose CDSL does not capture it as short-term in Buy and Sell value. Further, when there are several buyback through CNC bought and sold the same day for a meagre profit for stocks stuck in loss there is a significant variation between AIS AND TAX p&l and rectification is a cumbersome process.