Income tax: What are Form 16, AIS and 26AS?

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Correctly filing your income tax return (ITR) involves more than simply logging your salary and income information. Various official reports assist you in verifying your income, taxes paid, and other financial activities throughout the year. Three of the most important reports all taxpayers should know about are Form 16, the Annual Information Statement (AIS), and Form 26AS. What they are and how they assist you during tax season follows.

Form 16 is a certificate provided by your employer stating the amount of salary you received in a financial year and the amount of tax deducted at source (TDS) from that income. It serves as evidence that your employer paid the TDS to the government on your behalf.

The format has two components—Part A gives an overview of the TDS deducted and paid, whereas Part B shows the detailed breakup of your salary, exempted amounts, deductions under Chapter VI-A (such as Section 80C), and the net taxable income. According to the Income Tax Act, employers are required to provide Form 16 on or before June 15 at the end of the financial year.

Form 16 is mandatory for salaried taxpayers. It ensures you report income correctly and there is no mismatch at the time of filing returns.

Annual Information Statement, launched by the Income Tax Department in 2021, is a detailed report of your financial activity for a year. It lists income from different sources—wage, interest, dividend, mutual fund transactions, securities, foreign remittances, and high-value transactions.

AIS can be viewed using the income tax e-filing portal and assists taxpayers in matching that all their incomes are rightly reported. If mismatches exist between your ITR and AIS, it can lead to tax department questions.

In a 2025 advisory, the Central Board of Direct Taxes (CBDT) specified, "Taxpayers are advised to verify their AIS before filing returns to ensure complete and accurate reporting of income."

Form 26AS is an annual tax credit statement reflecting all taxes paid to the government against your PAN. It reflects TDS on salary, interest income, sale of property, advance tax payments, and self-assessment tax paid.

Form 26AS serves as a cross-checking tool—you can compare the taxes reflected in your ITR with the ones reported in Form 26AS to avoid missing any tax credit. It is particularly helpful if you have several sources of income or if more than one entity has deducted TDS.

As per a 2024 report by Deloitte India, almost 18% of tax return filers saw their refunds rejected or delayed due to their inability to reconcile their ITR with Form 26AS.

Verifying Form 16, AIS, and Form 26AS prior to filing your ITR ensures that your tax return is complete and accurate, saves you from notices from the tax department, and entitles you to claim all available tax credits.