Your AIS shows income you never earned — or an amount that is wrong. Do you file as per AIS or as per your records? Here is the decision rule, the fix process, and whether you will get a notice.
You log into the e-filing portal, download your Annual Information Statement (AIS), and see a figure that does not match your records — income you never earned, a transaction amount that is double the actual, or an entry under your PAN that should be under someone else's. Meanwhile, your Form 26AS shows something different again. Do you file as per AIS, as per your records, or somewhere in between? Here is the answer.
What AIS, TIS and Form 26AS actually are
These three documents serve different purposes, and understanding that is the first step to fixing mismatches.
| Document | What it is | Where the data comes from | What it is used for | |---|---|---|---| | Form 26AS | A tax credit statement showing TDS, TCS, advance tax, self-assessment tax, and high-value transactions. | Filed by deductors and collectors (employers, banks, tenants, buyers) through their TDS returns. | Verifying that tax deducted on your behalf has actually been deposited with the government. | | AIS (Annual Information Statement) | A comprehensive statement of all financial transactions reported against your PAN. | Reported by banks, mutual funds, brokers, registrars, and other specified entities under various reporting requirements. | Giving you visibility into what the tax department already knows about your financial activity. | | TIS (Taxpayer Information Summary) | A categorised summary generated from AIS data, broken into information categories. | Derived from AIS. | Helping you map AIS entries to the correct heads of income and ITR fields. |
AIS is the master document. Form 26AS is narrower — it focuses on tax credits and a subset of high-value transactions. A mismatch between AIS and 26AS is common and usually not a problem if you understand why it exists.
Common causes of AIS mismatches
### 1. Duplicate reporting
The most common cause. A single mutual fund SIP redemption may be reported by both the AMC and the depository (NSDL/CDSL). Your AIS shows the same transaction twice, doubling the apparent value.
Fix: Identify the duplicate. Mark it as 'duplicate' in AIS feedback. Report the single, correct transaction in your ITR.
### 2. Gross vs net reporting
Some entities report the gross transaction value (before charges, brokerage, or taxes) while your records show the net. For example, a property sale: the registrar may report the circle rate or agreement value, which may differ from the actual consideration.
Fix: Report the actual, correct figure in your ITR. Maintain supporting documents. If the difference is large, file AIS feedback explaining the discrepancy.
### 3. Joint account transactions attributed entirely to you
If you hold a joint bank account or a joint demat account, transactions may be reported entirely against your PAN as the primary holder, even though 50% of the funds belong to the joint holder.
Fix: Report your actual share of income. The joint holder should report theirs. If you receive a notice, explain the joint ownership and provide account statements showing the split.
### 4. Wrong PAN attribution
A reporting entity — a bank, a broker, a tenant — enters the wrong PAN on their return. Someone else's income gets reported against your PAN.
Fix: This is serious. File AIS feedback immediately stating that the transaction does not belong to you. If the amount is large, contact the reporting entity directly and ask them to correct their filing. Do not report the income in your ITR — it is not yours.
### 5. Employer-reported salary differing from Form 16
Your employer's quarterly TDS return may show a different salary figure than your Form 16, particularly if you changed jobs mid-year and the new employer reported the full-year salary.
Fix: File as per your Form 16. The annual Form 16 is the definitive employer-provided document. If the quarterly TDS return (reflected in 26AS/AIS) differs, your employer should file a correction. Mention the discrepancy to your HR/payroll team.
### 6. Interest income from multiple accounts aggregated incorrectly
Banks report interest paid across all your accounts. Your AIS may show interest from an FD you forgot about or an account you closed — and it may differ from what you computed from your bank statements.
Fix: Sum the interest from all your bank statements for the year. Report that total. If AIS shows additional interest you cannot account for, investigate with the bank and correct through AIS feedback.
The decision rule: how to file when AIS is wrong
This is the single most important rule on this page:
File your ITR as per your actual income and records. AIS is an information statement, not a demand. It tells you what has been reported about you. It does not dictate what you must report. You are required to report your actual income. If AIS says Rs X and your actual income is Rs Y, you file Rs Y.
If you file as per AIS when it is wrong, you are filing an incorrect return — over-reporting income is still an incorrect return, even if no additional tax is due.
After filing, submit AIS feedback for the incorrect entries. This creates a record that you have identified and disputed the incorrect reporting. If a notice is generated later based on the AIS entry, your feedback record and your return showing the correct income are your defence.
Step-by-step AIS feedback submission
1. Log in to incometax.gov.in. 2. Go to Services > Annual Information Statement (AIS). 3. Find the incorrect entry. Click the 'Optional' or 'Feedback' button next to it. 4. Select the appropriate feedback: 'Income is not taxable', 'Information is incorrect', 'Information is duplicate', 'Information relates to another PAN', etc. 5. Provide a brief explanation if required. 6. Submit. The feedback is recorded.
Feedback does not change the AIS immediately — it creates a record that the taxpayer has flagged a discrepancy. The reporting entity may or may not correct their filing. Your feedback protects you by showing you acted in good faith.
Will you get a notice?
A mismatch between your ITR and AIS does not automatically trigger a notice. Notices are generally issued when: - The discrepancy is large relative to your reported income. - There is a pattern — multiple years of AIS-reported income not reflected in returns. - The untaxed income is from a source that should have had TDS deducted.
The department uses risk parameters. A one-time, small discrepancy that you have flagged through AIS feedback is unlikely to trigger a notice. A large, recurring discrepancy that you make no effort to address is a different story.
The July 2026 development: Foreign asset visibility in AIS
The Income Tax Department has enabled visibility of foreign asset information in AIS through data received under the Common Reporting Standard (CRS) and FATCA. If you hold foreign assets — bank accounts, investments, property, or ESOPs in a foreign parent company — this information may now appear in your AIS.
This is significant for: - Employees of multinational companies holding ESOPs or RSUs in a foreign-listed parent. - NRIs who have returned to India and still hold overseas accounts. - Anyone with foreign investments, insurance policies, or property.
If you see foreign asset entries in your AIS and you have not been reporting them, consult a tax professional immediately. Non-disclosure of foreign assets carries severe penalties. If the entries are correct, ensure they are reported in the correct schedule of your ITR (Schedule FA in ITR-2). If the entries are incorrect, file AIS feedback and maintain documentation.
Frequently Asked Questions
### Should I file my ITR based on AIS or based on my records? Always based on your actual records. AIS is an information statement showing what was reported about you — it is not a demand. Report your genuine income. Use AIS feedback to flag incorrect entries.
### What if AIS shows income I genuinely did not earn? Do not report it. Flag it through AIS feedback as 'Information relates to another PAN' or 'Information is incorrect.' Maintain records to support your claim if questioned.
### Can I ignore small AIS mismatches? Small mismatches (a few thousand rupees in interest from a forgotten account) are common and usually handled by reporting the correct amount. Large or recurring mismatches should definitely be addressed through AIS feedback. Ignoring them creates a pattern that may eventually trigger scrutiny.
### How often should I check my AIS? At minimum, before filing your ITR each year. If you have complex financial transactions — capital gains, property transactions, foreign assets — consider checking it quarterly.
### What is the difference between AIS and the old Form 26AS? AIS is much more comprehensive. Form 26AS mainly covers TDS, TCS, and a limited set of high-value transactions. AIS includes all those plus detailed financial transaction data from banks, mutual funds, brokers, registrars, and other reporting entities.
### Can I use AIS to find deductions I might have missed? Yes. AIS can help you identify interest income from forgotten accounts, capital gains transactions you might have overlooked, and foreign asset information needed for complete reporting.
Disclaimer
This article is for educational purposes only. Tax provisions are subject to change. For specific discrepancies or notices, consult a qualified tax professional.