The Annual Information Statement replaced Form 26AS as the primary tax data document in 2021. Unlike Form 26AS, which only showed TDS and tax payments, AIS aggregates data from banks, brokers, mutual funds, property registrars, and even foreign remittance sources.
The IT department uses AIS to cross-check every ITR filed. If you declare ₹5 lakh of income but AIS shows ₹7 lakh of credits, you will receive a notice under Section 139(9) or 143(1). This guide shows you how to read AIS, identify mismatches, and fix them before they become a problem.
AIS is the most comprehensive record the IT department has of your financial activity. If your ITR does not match it, expect a notice. Check AIS before filing, not after.
What AIS Shows and Why It Matters
AIS aggregates data reported to the IT department by third parties — your bank, your broker, your mutual fund house, your employer, and property registrars. It is the closest thing to a complete financial picture the IT department has of you.
- Salary income reported by your employer
- TDS deducted by your employer, bank, tenant, or any other deductor
- Interest income from savings accounts and FDs reported by banks
- Dividend income reported by companies and mutual funds
- Capital gains from sale of mutual funds and stocks reported by brokers
- Property sale or purchase reported by property registrars
- Foreign remittances reported by banks
- High-value cash deposits reported by banks
How to Download and Read Your AIS
Log in to incometax.gov.in. Go to "Services" → "Annual Information Statement (AIS)". Click "AIS" to view the statement. You can download it as a PDF or JSON.
AIS has two parts. Part A covers personal information. Part B covers all financial transactions — this is what you need to review carefully.
For each entry in Part B, AIS shows the "reported value" (what the third party reported) and the "modified value" (after any feedback you have submitted). If you have never submitted feedback, both values are the same.
The Three Types of Mismatches to Watch For
Type 1 — Income in AIS that you did not declare in your ITR. This is the most common trigger for notices. Example: your bank reported ₹18,000 of FD interest in AIS but you forgot to include it in your ITR.
Type 2 — Income in your ITR that is not in AIS. Less common but can happen — for example if you received cash income or income from a source that does not report to AIS.
Type 3 — AIS shows incorrect data. Sometimes third parties report wrong amounts. For example your broker may have reported gross sale value of mutual funds instead of only the gains, making your income appear much higher than it actually is.
How to Fix an AIS Mismatch Before Filing
Step 1: Download AIS and your Form 16, bank statements, broker capital gains reports, and mutual fund statements. Go through every AIS entry and match it to a document you have.
Step 2: For each item in AIS, decide if it is correct or incorrect. If an AIS entry is correct and you missed it in your ITR — add it. If an AIS entry is incorrect — submit feedback.
Step 3: To submit feedback on an incorrect AIS entry, click "Optional — Submit Feedback" next to that entry. You can mark it as "Income is not taxable", "Income is already included under another head", "Incorrect information", or other applicable reasons.
Step 4: After submitting feedback, file your ITR with the correct figures. If AIS has not been corrected yet, note the discrepancy in the remarks field of your ITR and keep all supporting documents.
- Always reconcile AIS before filing, not after receiving a notice
- Do not wait for AIS to be corrected before filing — file with correct figures and note the discrepancy
- Keep all documents that support your feedback for at least 7 years
- If AIS shows gross MF sale value instead of gains, file correctly and note the discrepancy clearly
AIS vs Form 26AS — Which One Takes Priority?
AIS is more comprehensive than Form 26AS. Form 26AS only shows TDS deducted, taxes paid, and refunds. AIS shows all of that plus the underlying income transactions.
For ITR filing purposes, always use AIS as your primary reference. Form 26AS is still useful for verifying TDS credits specifically.
Reconciliation order: Start with AIS. Cross-check TDS amounts with Form 26AS. Cross-check salary with Form 16. Cross-check all other income with your own statements.
What to Do If You Already Received a Notice
If you have already filed and received a notice under Section 139(9) (defective return) or 143(1) (intimation with demand), do not ignore it. Respond within the time limit mentioned in the notice.
For a 139(9) notice, you need to file a revised or rectified return. For a 143(1) demand, you can either pay the demand or file a rectification request under Section 154 if the demand is wrong.
All notices and responses are handled online at incometax.gov.in under "e-Proceedings". You do not need to visit a tax office.
