Happy Holi, everyone! 
With only a month left before the tax year wraps up, you’re probably looking back at the financial decisions you made over the last twelve months. The Income Tax Department keeps track of many of these transactions as well.
The easiest way to see this information in one place is through Form 168 – the Annual Information Statement (AIS). It shows all the financial activity reported against your PAN.
For many people, especially those earning a salary, this information often connects back to two other forms. Form 130 summarises the salary you earned during the year and the TDS deducted by your employer. This TDS is usually calculated based on Form 124, where you declare your investments so your employer can estimate your tax more accurately.
So when the details across these forms align, filing your return becomes a breeze.
We’ve handpicked threads on these topics in today’s edition.
TOP THREADS
What is Form 168, the Annual Information Statement (AIS)?
Before submitting your ITR, it’s important to verify what information the tax department already has about you. Form 168 is your Annual Information Statement, which captures the financial information reported against your PAN and helps you confirm whether…Continue Reading
What is Form 130, the salary certificate issued by your employer?
Once the tax year ends, most salaried employees wait for Form 130 in June. It’s the salary certificate issued by your employer that summarises the annual salary you earned and the TDS deducted from it. You should always compare the details in it with…Continue Reading
What is Form 124 for declaring investments to your employer?
If you wonder why your take-home salary changes even when your CTC stays the same, the difference usually comes down to how your employer calculates TDS. And that calculation depends on a declaration form called Form 124. It is made when…Continue Reading
FAQs
When should I submit Form 124?
Form 124 should ideally be submitted in April or May, at the start of the tax year. This allows your employer to spread the TDS benefit across all 12 monthly salary payments. Some employers may also allow a revised declaration at year-end (Jan or Feb) so that TDS can be adjusted based on your actual investments.
Will I get Form 130 even if my employer has not deducted TDS?
If your income does not exceed the basic exemption limit, your employer is not required to deduct TDS from your salary. In such cases, the company is not obligated to issue Form 130. However, you can still request your employer to provide Form 130 Part-B, which gives a detailed breakdown of your salary and deductions.
What kind of transactions appear in AIS?
Basically, if a bank, broker, or employer reports a transaction to the tax department, it will show up here. The AIS tracks details such as TDS, high-value transactions, tax payments, and refunds. Hence, it’s a master record of all your financial activity for the year. This helps ensure the details you report in your ITR match the information the government already knows.
RESULTS FROM LAST DIGEST
Which form should you file if you deduct TDS on payments made to NRIs?
A) Form 138 (0%)
B) Form 140 (0%)
C) Form 144 (100%) 
D) Form 143 (0%)
100% of people chose the right answer. Well done!