Overview: The Annual Information Statement (AIS) has evolved as the most important reconciliation tool for the 2026 tax season. Smart business owners and meticulous tax professionals are now using the AIS as a robust defence mechanism to thwart unwarranted tax compliance risks.
There is very little room for error in tax filing today. Whether you are reconciling GST turnover, handling foreign remittances, or managing the new requirements of Form No. 168 (Income-tax Act, 2025), outdated filing methods are no longer helpful. This guide provides the expertise required to reconcile your financial data. With professional guidance from SetIndiaBiz, businesses can transform this regulatory requirement into an opportunity to ensure audit-readiness, mitigate risk, and streamline their annual compliance journey.
The Annual Information Statement (AIS) gives taxpayers a consolidated view of information available with the Income Tax Department. It may include TDS/TCS, specified financial transactions, GST turnover, securities transactions and certain foreign transaction information. Reviewing AIS before filing the Income Tax Return (ITR) helps businesses identify mismatches and correct errors. From Tax Year 2026-27, the evolved Annual Information Statement is provided through Form No. 168 under the Income-tax Act, 2025.
For a business owner, AIS is more useful as a reconciliation tool than as another document to download at the time of ITR filing. Information in AIS should be compared with the books of account, GST returns, TDS records, bank statements and investment records.
A mismatch does not automatically mean non-compliance. What matters is whether the difference has a genuine explanation and supporting records.
What is the Annual Information Statement (AIS)?
AIS provides a consolidated view of information presently available with the Income Tax Department. Depending on the taxpayer, it may include:
- TDS and TCS
- Specified financial transactions
- Tax payments
- Securities transactions
- GST turnover
- Certain foreign remittances
- Other reported information
Under the existing AIS framework, taxpayers can also view the Taxpayer Information Summary (TIS), which provides a category-wise summary of information after processing and may support return pre-filling where applicable.
AIS 2026 and Form No. 168: What Has Changed?
The introduction of the Income-tax Act, 2025 brings a new reporting framework from Tax Year 2026-27.
For AY 2026-27, AIS continues for FY 2025-26 under the Income-tax Act, 1961. For Tax Year 2026-27, covering FY 2026-27, the evolved Annual Information Statement is provided through Form No. 168 under the Income-tax Act, 2025.
| Particulars | AY 2026-27 | Tax Year 2026-27 |
|---|---|---|
| Income period | FY 2025-26 | FY 2026-27 |
| Applicable law | Income-tax Act, 1961 | Income-tax Act, 2025 |
| Information statement | AIS | Form No. 168 |
Businesses should therefore confirm the correct assessment year or tax year before starting reconciliation.
GST Turnover in AIS: Why Should Businesses Reconcile It?
GST turnover can appear in AIS under information code EXC-GSTR3B in the Other Information section
For example, if:
- Turnover as per books: ₹5 crore
- GST turnover in AIS: ₹5.40 crore
the difference should be examined, but it does not automatically indicate suppressed income.
Possible reasons include:
- Tax-inclusive and tax-exclusive figures
- Exempt or non-GST supplies
- Advances
- Credit notes and adjustments
- Timing differences
- Different GST and accounting treatments
The business should identify the actual reason and retain supporting records. The purpose of reconciliation is not to make every figure identical, but to ensure that differences are genuine, explainable and properly documented.
Foreign Remittances and Foreign Assets in AIS
Certain information relating to outward foreign remittances or purchase of foreign currency may appear in AIS. Businesses making overseas payments should maintain bank records, invoices, agreements, accounting entries and documents supporting the purpose of the payment.
AIS does not replace separate FEMA or overseas investment compliance wherever applicable.
There is also an important 2026 development relating to foreign assets. The Income Tax Department enabled taxpayers to view certain Foreign Asset Information received under the CRS/FATCA automatic exchange of information framework through AIS.
However, taxpayers should not assume that every foreign asset will appear in AIS. Applicable foreign-asset and foreign-source income disclosures must still be made in the ITR.
Off-Market Securities Transactions and AIS
Businesses should also review off-market securities transactions, particularly transfers involving unlisted shares.
It is important not to assume that every off-market transaction will automatically appear in AIS. The information available depends on the applicable reporting mechanism and the information received by the Income Tax Department.
For such transactions, businesses should maintain:
- Share transfer documents
- Purchase or sale agreements
- Consideration details
- Acquisition records
- Valuation documents, where applicable
- Demat or depository records
- Details of the parties involved
Proper documentation helps explain a transaction if information reported by another party differs from the company’s records.
AIS vs Books vs ITR: Why Reconciliation Matters
AIS is an information statement, not a tax demand. Businesses should compare relevant information with their internal records before filing the ITR.
| Area | Records to Reconcile |
|---|---|
| GST turnover | GST returns, books and ITR |
| TDS/TCS | AIS, Form 26AS and books |
| Bank transactions | Bank statements and accounting records |
| Securities | Broker and depository records |
| Foreign remittances | Bank records and purpose of payment |
| Foreign assets | AIS and applicable ITR disclosures |
| Off-market transactions | Transfer and valuation records |
A mismatch should be investigated rather than immediately treated as an error.
What if AIS Contains Incorrect Information?
AIS information may sometimes be incorrect, duplicated or require modification. The taxpayer should first verify the underlying transaction and supporting documents.
If required, feedback can be submitted through the AIS facility on the income tax e-filing portal. After submission, the modified value is displayed along with the reported value, and the taxpayer can view the feedback history and download an acknowledgement receipt.
Businesses should retain the supporting documents along with the acknowledgement.
How Should Businesses Review AIS Before Filing ITR?
A practical review can be completed through these steps:
- Confirm the correct tax period: Check whether the records relate to AY 2026-27 or Tax Year 2026-27.
- Review TDS/TCS: Match AIS with Form 26AS, books and tax records.
- Reconcile GST: Compare AIS turnover with GSTR-3B, books and ITR.
- Check investments: Review dividends and securities transactions against broker, demat and accounting records.
- Review foreign transactions: Match remittances with bank records, invoices and their purpose.
- Resolve material differences: Submit AIS feedback where information is incorrect or requires modification.
Does an AIS Entry Mean That Tax is Payable?
No. An AIS entry does not by itself create an additional tax liability. The tax treatment depends on the nature of the transaction and applicable law.
At the same time, a transaction should not be omitted from the ITR merely because it is missing from AIS. The Income Tax Department states that AIS contains information presently available to it and may not contain every transaction. Taxpayers remain responsible for complete and accurate reporting.
Conclusion
AIS has become an important checkpoint for business tax compliance. GST turnover, TDS/TCS, securities transactions, foreign remittances and certain foreign-asset information can all require reconciliation with the company’s own records.
The key is not to panic over every mismatch, but to understand, reconcile and document it.
For AY 2026-27, AIS continues under the Income-tax Act, 1961. For Tax Year 2026-27, businesses should also understand the new Form No. 168 framework under the Income-tax Act, 2025.
A timely review can help businesses identify errors early and file their ITR with greater confidence.
FAQs
What is AIS in income tax?
Does GST turnover appear in AIS?
What is Form No. 168 under the Income-tax Act, 2025?
Can foreign assets appear in AIS?
What should I do if AIS contains incorrect information?
Setindiabiz Support
Navigating complex tax regulations is much simpler when you have the right experts in your corner. We have designed our professional income tax, GST, and corporate compliance services at SetIndiaBiz to shield your business from unwarranted penalties and stressful audit notices.
Our dedicated team of Chartered Accountants handles the heavy lifting, ensuring your financial records are flawless:
- Proactive AIS & TIS review: We cross-reference your records to eliminate mismatches before the tax department notices them.
- GST turnover alignment: We reconcile GSTR-3B filings with your books to resolve and document reporting gaps.
- Foreign & investment audits: We verify outward remittances and foreign assets to ensure absolute compliance with current tax laws.
- Audit-ready ITR filing: We prepare and submit your annual returns with watertight supporting evidence.
Secure your compliance and protect your business. Get in touch with SetIndiaBiz today and as we handle all compliance matters you focus on your business goals.
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Author Bio
Setindiabiz Editorial Team is a multidisciplinary collective of Chartered Accountants, Company Secretaries, and Advocates offering authoritative insights on India’s regulatory and business landscape. With decades of experience in compliance, taxation, and advisory, they empower entrepreneurs and enterprises to make informed decisions.
