AIS and Form 16 Difference: If the amount of TDS given in Form 16 and the information extracted by the Annual Income Statement do not match, then it can cause trouble for the taxpayer. For this, a notice can also be issued by the Income Tax Department.

While filing income tax returns, taxpayers often make such small mistakes, due to which they are later sent an income tax notice. Similarly, the difference in the information of the Annual Information Statement (AIS) and Form 16 can also become a big problem for taxpayers. If you also want to avoid such problems during income tax filing, then definitely read the full news.

What are AIS and Form 16?

First of all, you should know what is AIS and Form 16? How are they used while filing income tax returns? And why is it more important. If you are also filing income tax return then you should also know the answers to these questions.

Form 16:

This is a proof of your salary which is a document issued by the employer. Form 16 contains information about your salary, deductions and other types of exemptions. Which is issued for salaried employees. It also contains information about the amount of TDS, PAN and TAN. It is considered a basic document at the time of filing ITR for salaried people.

AIS:

This is an account of your complete financial transactions in the financial year. It is a document issued by the Income Tax Department which includes all the financial information.

This document includes information about salary, interest, dividend, rental income, TDS, TCS details, transactions like shares, mutual funds, property purchase and sale, foreign remittance and GST turnover, tax payment, refund, and demand etc.

To make income tax return filing easier, taxpayers are given a record of all their financial activities at one place.

Difference between AIS and Form 16

1. Form 16 contains information only about salary, exemption and TDS related to it. Whereas AIS contains information about the entire transaction done in the financial year along with interest from all other sources.

2. Form 16 is issued by the employer. AIS is issued by the Income Tax Department. For which the Income Tax Department collects information from banks, stock exchanges, mutual funds etc.

3. Only limited information is available from Form 16, this information is focused only on salary. But detailed information is given in the Annual Income Statement in which the taxpayer also has the option to give feedback.

What will happen if there is a difference between Form 16 and AIS?

If the amount of TDS given in Form 16 and the information extracted by the Annual Income Statement do not match, then it can cause trouble for the taxpayer. For this, a notice can also be issued by the Income Tax Department. But taxpayers can get out of this trouble by correcting some of their small mistakes.

For example, many times wrong or duplicate information can be found in the annual income statement. Such as data about dividend or interest is entered twice. You can avoid trouble by correcting this small mistake. If it is not corrected, there may be an error in the income tax return as well.

You may have to pay a penalty

If wrong information is given in the income tax return, then you may have to pay a heavy penalty and interest for it. Thousands of such cases have come to light in which notices were sent to taxpayers by the Income Tax Department due to mismatch between the income tax return and the annual income statement.

Pay attention to these things before filing income tax return -

1. Match Form 16 and annual income statement. If there is any kind of mismatch, then correct it immediately.

2. If you want, you can also get the information shown in your annual income statement like interest or dividend from your bank statement, demat statement. So that the error is revealed on time.

3. If any wrong or duplicate information is found in the annual income statement, then you can submit online feedback for it. You can do this work through the official portal of Income Tax Department www.incometax.gov.in.

4. After your feedback, the taxpayer information summary is updated.

5. If there is a difference in the information of TDS and tax payment in the annual income statement and Form 26 AS, then give priority to Form 26 AS.

6. Before filing income tax return, keep the necessary documents like bank statement, interest certificate, investment certificate, rent agreement ready. Through all these documents, you can verify the information given in the annual income statement.0