Annual Information Statement
A consolidated statement from the income tax department showing financial transactions reported against a taxpayer's PAN.
How it is identified
Test: the transaction was reported to the tax department by a bank, broker, depository, fund house or registrar against the taxpayer's PAN
Unit
qualitative
In depth
The AIS aggregates reported securities transactions, dividends, interest, mutual fund purchases and redemptions, and much else, which means the tax department already sees most of what an investor did before the return is filed. Reconciling it before filing catches both omissions and errors, and errors are common — off-market transfers, corporate actions and cost basis are frequently misreported by the reporting entity. Feedback can be submitted on individual entries where they are wrong. Filing a return that contradicts the AIS without explanation is the most likely trigger for a notice.
Worked example
The AIS reports a ₹12,00,000 securities sale that the investor forgot was a rights entitlement sale. Omitting it from the return contradicts a figure the department already holds, and the mismatch is machine-detected.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “Annual Information Statement” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.