Published 9 May 2026
Salary, Rent, Dividend, Interest, Lottery, Provident Fund, Insurance, Section 115A series and Specified Senior Citizen income -- Annual Information Statement categories 4.1 to 4.28
Taxpayer Brief
Twenty-eight of the fifty-nine categories that the Annual Information Statement tracks are pure income receipts -- the salary credited by the employer, the rent received from the tenant, the dividend declared by the company, the interest credited by the bank, the lottery prize, the Provident Fund withdrawal, the insurance pay-out, and a series of specialised receipts taxed under sections 115A, 115AB, 115AC, 115AD, 115BB and 115BBA. This article walks through each category, identifies who reports it and what return form it pre-fills, and points out the most common reconciliation traps.
1. The Reporting Architecture for Income Receipts
Each income category in the Annual Information Statement is populated from one or more of the three principal reporting channels under Indian tax law: the Tax Deducted at Source statement filed by the deductor under section 200 of the Income-tax Act, 1961; the Specified Financial Transaction return filed under section 285BA in Form 61A; and other statutory returns and information shared by reporting agencies. The category labels in the Annual Information Statement broadly mirror the heads under which the income is taxed in the return.
2. Salary (Category 4.1)
Source of Information: The employer who deducts Tax Deducted at Source under section 192 of the Income-tax Act, 1961 and files the quarterly statement in Form 24Q. Alongside, the same employer issues Form 16 -- Part A (the Tax Deducted at Source certificate) and Part B (the salary detail). The Annual Information Statement category 4.1 picks up the gross salary, perquisites and profit in lieu of salary as reported in Annexure II of Form 24Q.
Field | Source | Reconciliation Note |
|---|---|---|
Gross Salary including allowances | Form 24Q Annexure II | Match against Form 16 Part B and the salary slip aggregate |
Perquisites under section 17(2) | Form 24Q Annexure II | Particularly check stock options, employer-provided accommodation and motor car perquisite |
Profit in lieu of salary | Form 24Q Annexure II | Severance, gratuity in excess of section 10(10), commuted pension |
Section 10 exemption claimed (House Rent Allowance, Leave Travel Concession, etc.) | Reflected in the deducted figure | Verify the exemption is supported by rent receipts or travel bills |
Tax Deducted at Source under section 192 | Form 24Q Annexure I, also visible in the legacy Form 26AS view | Cross-tally with the credit claimed in Schedule TDS1 of the return |
Multiple-employer mid-year switch Where the taxpayer changed employers during the year, both employers report under category 4.1. Many taxpayers err by reporting only the Form 16 from the current employer and missing the previous employer's salary; the section 143(1)(a) intimation then flags the under-reporting. |
3. Rent Received (Category 4.2)
Source of Information: The tenant deducting Tax Deducted at Source under section 194-I (where the tenant is in tax audit) or section 194-IB (where the tenant is an individual or Hindu Undivided Family paying rent above rupees fifty thousand per month). The tenant files the quarterly Tax Deducted at Source statement in Form 26Q (or Form 26QC for section 194-IB) and the Annual Information Statement picks the gross rent figure.
Sub-Category | Tax Deducted at Source Section | Where in the Return |
|---|---|---|
Rent on land or building from a corporate or audited tenant | Section 194-I at 10% | Schedule HP or Schedule BP if let-out as part of business |
Rent on land or building from an individual or Hindu Undivided Family tenant paying more than rupees fifty thousand per month | Section 194-IB at 5% | Schedule HP |
4. Dividend (Category 4.3)
Source of Information: The dividend-paying company under section 194 of the Income-tax Act, 1961 filing Form 26Q; the registrar and share transfer agent reporting under the Specified Financial Transaction obligation in Form 61A. Both sources feed in -- the deduplication rule retains the higher value.
Receiver Profile | Tax Deducted at Source Rate | Practitioner Note |
|---|---|---|
Resident shareholder | 10% under section 194 if dividend exceeds rupees five thousand in the year per company | Reconcile against the dividend warrant and the demat statement |
Non-resident shareholder | 20% (plus surcharge and cess) under section 195, subject to the Double Taxation Avoidance Agreement rate | Apply for a certificate under section 197 if the treaty rate is lower |
Dividend on listed equity received via stock broker | Often credited net of Tax Deducted at Source | Match the gross figure in the Annual Information Statement against the broker dividend statement |
5. Interest from Savings Bank, Deposits, Others, and on Income Tax Refund (Categories 4.4 to 4.7)
These four categories together capture every rupee of interest credited to the taxpayer during the year. Banks report savings account interest above rupees ten thousand under the Specified Financial Transaction obligation in Form 61A and deduct Tax Deducted at Source under section 194A for term deposits when interest exceeds rupees forty thousand for a non-senior citizen and rupees fifty thousand for a senior citizen. The Income Tax Department itself reports the interest paid under section 244A on the refund under category 4.7.
Annual Information Statement Category | Source of Information | Where in the Return |
|---|---|---|
4.4 Interest from savings bank | Bank Specified Financial Transaction reporting in Form 61A above the threshold; banks may also report below threshold voluntarily | Schedule OS; deduction under section 80TTA up to rupees ten thousand for individuals or section 80TTB up to rupees fifty thousand for senior citizens |
4.5 Interest from deposit | Bank or Non-Banking Financial Company Tax Deducted at Source under section 194A in Form 26Q | Schedule OS |
4.6 Interest from others | Inter-corporate deposit, debenture, employer-provided loan interest, etc. | Schedule OS; v4.1.0 adds customised feedback for sub-categorisation |
4.7 Interest from income tax refund | Income Tax Department (intra-departmental) | Schedule OS |
Five-year sweep Term deposits with auto-renewal are often reported in the year of credit (typically the maturity year) but the taxpayer may have offered the income on accrual basis in earlier years. The Annual Information Statement does not know what method the taxpayer follows. The customised feedback option in category 4.6 lets the taxpayer flag the year-mismatch; the practitioner must respond before filing. |
6. Rent on Plant and Machinery (Category 4.8) and Lottery / Horse-Race / Online-Game Style Receipts (Categories 4.9, 4.10)
Category | Source | Tax Treatment |
|---|---|---|
4.8 Rent on plant & machinery | Tax Deducted at Source under section 194-I at 2% on machinery, plant or equipment | Schedule OS or Schedule BP |
4.9 Winnings from lottery or crossword puzzle u/s 115BB | Tax Deducted at Source under section 194B at 30% | Special rate of 30% under section 115BB; no deduction; no set-off |
4.10 Winnings from horse race u/s 115BB | Tax Deducted at Source under section 194BB at 30% | Same special-rate regime as category 4.9 |
7. Receipt of Accumulated Balance of Provident Fund from Employer (Category 4.11)
Where an employee withdraws the accumulated Provident Fund balance before completing five years of continuous service, the trustees of the Provident Fund deduct Tax Deducted at Source at 10% under section 192A. The Annual Information Statement category 4.11 picks up this entry. The receipt is taxable as Salary in the year of withdrawal, with potential relief under section 89 if the employee was on a lower bracket in earlier years.
8. Section 115A Series and Specified Income (Categories 4.12 to 4.19)
These specialised categories track receipts subject to special-rate taxation under Chapter XII of the Income-tax Act, 1961. Each is largely relevant to non-resident assessees and offshore funds. The Handbook lists eight separate sub-codes -- the practitioner needs only know that these flow into Schedule OS and Schedule SI (Income Chargeable to Tax at Special Rates) of the return.
Category | Income Type | Special Rate |
|---|---|---|
4.12 Interest from infrastructure debt fund u/s 115A(1)(a)(iia) | Non-resident interest from infrastructure debt fund | 5% plus surcharge plus cess |
4.13 Interest from specified company by a non-resident u/s 115A(1)(a)(iiaa) | Non-resident interest under External Commercial Borrowing or Long-Term Bond | 5% plus surcharge plus cess |
4.14 Interest on bonds and government securities | Non-resident interest on rupee-denominated bonds, government securities | 5% to 20% depending on instrument |
4.15 Income in respect of units of non-resident u/s 115A(1)(a)(iiab) | Income on units of business trust or mutual fund payable to non-resident | 5% plus surcharge plus cess |
4.16 Income and long-term capital gain from units by an offshore fund u/s 115AB(1)(b) | Offshore mutual fund income and capital gain | 10% plus surcharge plus cess |
4.17 Income and long-term capital gain from foreign currency bonds or shares of Indian companies u/s 115AC | Foreign currency convertible bond, depository receipt income / gain | 10% plus surcharge plus cess |
4.18 Income of foreign institutional investors from securities u/s 115AD(1)(i) | Foreign Portfolio Investor income on securities | 20% (income); 10% / 15% (capital gain) |
4.19 Income of Specified Funds from securities u/s 115AD(1)(i) | International Financial Services Centre Specified Fund (Category III Alternative Investment Fund) income on securities | 20% / 10% / 15%; added in v3.0.0 of the Handbook |
9. Insurance, Mutual Fund, Securitisation Trust and Government-Payable Income (Categories 4.20 to 4.27)
Category | Source | Practitioner Note |
|---|---|---|
4.20 Insurance commission | Tax Deducted at Source under section 194D at 5%; reported by insurer in Form 26Q | Business income for life insurance / general insurance agents |
4.21 Receipts from life insurance policy | Tax Deducted at Source under section 194DA at 5% on the income component (sum assured less premium) where the policy is not exempt under section 10(10D) | Carefully apply the section 10(10D) exemption test: premium-to-sum-assured ratio threshold and the rupees five lakh annual premium threshold for policies issued from 1 April 2023 |
4.22 Withdrawal of deposits under National Savings Scheme | Tax Deducted at Source under section 194EE at 10% | Schedule OS |
4.23 Receipt of commission etc. on sale of lottery tickets | Tax Deducted at Source under section 194G at 5% | Business income |
4.24 Income from investment in securitisation trust | Tax Deducted at Source under section 194LBC | Schedule SI special rate |
4.25 Income on account of repurchase of units by Mutual Fund or Unit Trust of India | Tax Deducted at Source under section 194F | Now largely obsolete after the 2016 amendment; legacy entries |
4.26 Interest or dividend or other sums payable to government | Specific section 196 exemption framework | Identifies government-receivable income; review if applicable |
4.27 Payment to non-resident sportsmen or sports association u/s 115BBA | Section 194E Tax Deducted at Source at 20% | Special-rate income |
10. Income of Specified Senior Citizen (Category 4.28)
Section 194P of the Income-tax Act, 1961 was inserted by the Finance Act, 2021 with effect from 1 April 2021 and applies to a 'specified senior citizen' -- an individual aged seventy-five or above who has only pension income and interest income from the same specified bank. The bank computes the tax on the entire income (after eligible deductions), deducts and deposits the tax, and the senior citizen is exempted from filing the return. Category 4.28 displays the bank-computed tax and exemption -- this is largely informational, since the senior citizen who claims this benefit does not file the return.
When senior citizens still file If the specified senior citizen has any income beyond pension and interest from the specified bank (capital gain on house sale, dividend, rent, etc.), the section 194P benefit is forfeited and the return must be filed normally. The Annual Information Statement category 4.28 then helps reconcile the bank's earlier computation against the return. |
11. Case Law Reference and Anticipatory Legal Analysis
Case Law Reference: Salary, rent, dividend, interest categories The AIS architecture covers four primary income categories under sub-section (1) of section 285BA -- Salary (sub-section (1) of section 17), Rent (House Property head), Dividend (Other Sources or Business head depending on holding), and Interest (Other Sources for individuals; Business head for businesses). The Income Tax Appellate Tribunal Mumbai in [VERIFY: confirm Tribunal citation on AIS-Salary-Schedule S reconciliation] addressed reconciliation between AIS-reported salary and Income Tax Return Schedule S. [VERIFY: cross-check specific Tribunal citations in the BharatTax case-law database.] |
Prospective Interpretation -- The post-2023 AIS expansion Two unsettled interpretive issues. (i) Treatment of dividends post-Finance-Act-2020 abolition of Dividend Distribution Tax -- dividends are now taxable at slab rate in the recipient's hands; AIS reports the gross dividend, requiring Income Tax Return Schedule OS reconciliation. (ii) Treatment of interest income from various banks / post-office instruments -- the AIS aggregates across Permanent Account Numbers; the practitioner must verify against Form 26AS and Form 16A. The BharatTax case-law database should monitor emerging Tribunal positions. [VERIFY: confirm Tribunal decisions emerging on the post-Finance-Act-2020 framework.] |
12. Key Takeaways
- Annual Information Statement categories 4.1 to 4.28 cover all major income receipts -- salary, rent, dividend, interest, special-rate income under Chapter XII of the Income-tax Act, 1961, insurance receipts, mutual fund redemption, securitisation trust income, and the section 194P senior-citizen scheme.
- Each category is populated from one or more reporting sources -- principally Tax Deducted at Source statements (Form 24Q for salary, Form 26Q for non-salary, Form 27Q for non-resident) and Specified Financial Transaction returns in Form 61A.
- The Taxpayer Information Summary deduplicates entries reported under multiple sources and produces a single L3 figure per category that pre-fills the corresponding schedule of the return.
- Common reconciliation traps -- mid-year employer change (4.1), multiple-bank interest aggregation (4.5), accrual-versus-receipt mismatch on term deposits (4.6), section 10(10D) exemption test on insurance receipts (4.21).
- The customised feedback option, expanded in Handbook v4.1.0 (February 2026), gives the taxpayer a structured way to add supporting context -- use it whenever the reported figure needs explanation.
Disclaimer: This article is for general information only. It does not constitute tax / legal advice. Please consult a qualified Chartered Accountant or tax practitioner for advice specific to your circumstances. The legal position is current as of FA 2024 (No. 2) / FA 2025; subsequent amendments and CBDT notifications may modify the position.