Introduction
You open your Annual Information Statement (AIS) and see a number that does not match your records, perhaps interest on an FD you closed two years ago.
Most people either panic or ignore it. Both are mistakes, because the tax system now runs this comparison on every return automatically.
What Changed
Earlier, income tax worked on trust and few returns were checked. Now banks, mutual funds, brokers and companies report your transactions, linked to your PAN, as Statements of Financial Transactions (SFT). All of it is collected in your AIS before you file, and your return is compared with it. Under the e-Verification Scheme, 2021, mismatches go to the Compliance Portal, with an SMS and email to you. In December 2024, the CBDT ran a special campaign on such mismatches. No person is checking your file; a program is, and you may hear within months.
AIS, TIS and Form 26AS
These are not the same. The AIS lists every transaction reported about you, such as TDS/TCS, interest, dividends and share sales, and is where you give feedback. The TIS (Taxpayer Information Summary) is a short
summary by category, showing a processed value and a derived value, and your The return is filled using the derived value. Form 26AS, now Form 168, shows only tax already paid for you: TDS, TCS, advance tax and self-assessment tax.
Why Mismatches Happen (Usually Not Your Fault)
• Timing: the bank counted interest as earned; you counted it as received.
• Sale value versus profit: the AIS shows the full sale value of shares or property, not your profit. If you sold shares worth ₹40 lakh at a ₹2 lakh profit, the AIS shows ₹40 lakh.
• Reported twice: often by both the broker and the depository.
• Wrong PAN or share: a joint asset shown as 100% yours.
Give Feedback If the AIS Is Wrong
The AIS is a draft, not a tax bill. Next to each entry you can select what is wrong, such as “duplicate” or “belongs to another person,” and submit. Your corrected amount appears beside the original.
Your feedback goes to the reporting organization, and since May 2024 the portal shows whether they accepted it. If they stand by their data and income seems missing from your return, you may get a notice under Section 133(6) on the Compliance Portal. Your last option is an updated return under Section 139(8A), which costs far more than feedback in July.
A 2026 Change Many Have Missed
The Income-tax Act, 2025 came into force on 1 April 2026, and Form 26AS is now Form 168. The content is unchanged, but any checklist or template saying “26AS” is outdated. For income up to 31 March 2026 (AY 2026-27), the old Act applies, so use the AIS and Form 26AS. From FY 2026-27, use Form 168. Check your software this year.
A Simple Routine
- Check every quarter, while you still remember the transactions.
- Download the AIS and TIS in CSV for many entries.
- Go section by section against bank, broker, and depository statements, Form 16, and your books.
- Never ignore an entry. Flag it, or report it.
- Save every acknowledgement. It proves you acted.
- Remember what is not in the AIS. Income nobody reported must still be declared.
Matching records was once clerical work. Now it is risk control, because a mistake brings an almost certain automatic notice. This is easiest when one firm keeps your books all year. At Manthan Experts, a CA firm in Noida, our accounting and bookkeeping services in Noida keep books ready to match your AIS, while our income tax consultant in Noida and ITR filing services in Noida handle AIS feedback. We also offer GST consultant support in Noida, audit services in Noida, ROC compliance services, payroll services in Noida and virtual CFO services in Noida. A chartered accountant in Noida who has kept your books can check an entry in minutes.
FAQs
Q1: If my AIS is wrong, am I in trouble?
No. A wrong entry is not an accusation. Trouble starts only if you ignore it and file a return that does not match.
Q2: My only income is salary. Do I still need to check?
Yes. Savings interest, an old FD, or dividends on inherited shares can appear in the AIS but never in Form 16.
Q3: I run a small cash business. Does this affect me?
Yes. Cash itself is not in the AIS, but bank deposits, customers’ GST returns, and TDS deducted by clients are.
Conclusion
In today’s data-driven tax system, filing an accurate income tax return requires more than simply reporting income. Regularly reviewing your AIS, TIS, and financial records helps identify discrepancies, avoid unnecessary notices, and maintain tax compliance. Remember, an AIS mismatch does not always indicate an error in your return, but ignoring it can create complications. By maintaining updated books, verifying transactions, and seeking timely professional guidance, taxpayers can stay prepared and confident. At Manthan Experts, we help individuals and businesses reconcile financial records, resolve AIS mismatches, and ensure smoother, more reliable tax compliance.
Not sure what your AIS is saying about you? Book a 30-minute consultation. We will review your AIS and TIS and flag anything likely to cause a notice. Phone: +91 9643969969 | Email: Info@manthanexperts.com | Website: www.manthanexperts.com | Manthan Experts, Noida Sector 18