Mismatch in returns? Why checking your AIS before filing ITR is must now
Before filing your ITR this year, reviewing your AIS (Annual Information Statement) is crucial to avoid mismatches and tax notices. AIS captures your complete financial activity and helps ensure accurate tax reporting.
- Jul 31, 2025,
- Updated Jul 31, 2025 6:20 PM IST
“Mismatch in your return. Please respond.” If this email lands in your inbox from the Income Tax Department, chances are you skipped a critical step: reviewing your Annual Information Statement (AIS) before filing your Income Tax Return (ITR).
As the tax filing season for FY 2024–25 (AY 2025–26) begins, millions of taxpayers are gathering documents and calculating deductions. But before clicking ‘Submit’ on your return, it’s essential to verify your declared income with the data in your AIS.
Why AIS matters
CA Nitesh Buddhadev, tax planner and wealth expert, shares a cautionary tale: “A friend filed everything on time. His return looked fine. But a missed income entry—clearly visible in the AIS—triggered a notice. It took weeks to resolve.”
This isn’t an isolated incident. The Income Tax Department has stepped up surveillance using AI and analytics, making it easier to flag even minor mismatches. A small oversight in reported income—especially if it differs from what’s captured in AIS—can result in automated scrutiny or even penalties.
What Is AIS?
The Annual Information Statement is a comprehensive summary of your financial footprint, compiled from data reported by banks, mutual funds, employers, brokers, and other institutions. It expands on Form 26AS, which only showed TDS, TCS, and a few high-value transactions.
AIS includes detailed records of:
Salary income
Bank and FD interest
Dividends (domestic and foreign)
Capital gains from stocks, mutual funds, ETFs
Property transactions
Overseas remittances
Rent received
High-value purchases (cars, jewelry, foreign travel)
It shows both aggregate and transaction-wise data with source details like account numbers, bank names, and dates. For example, if you earned ₹1,700 in savings account interest and ₹42,000 from FDs, Form 26AS might show only the FD (due to TDS), but AIS will reflect both.
What Happens If You Don’t Match It? Failing to reconcile your return with your AIS can lead to penalties up to 200% of the underreported tax and interest up to 24% per annum under Sections 234B and 234C of the Income Tax Act.
How to Check and Correct Your AIS Follow these steps to access your AIS:
Go to www.incometax.gov.in
Log in using your PAN/Aadhaar and password
Navigate to ‘Services’ > ‘Annual Information Statement (AIS)’
Click ‘Proceed’ to view it
To download the PDF, use the password: PAN (in lowercase) + Date of Birth (DDMMYYYY)
If you spot any discrepancies, click on the transaction and select ‘Add Feedback’ or ‘Optional’ to submit corrections.
Your feedback is then verified with the source institution. The AIS portal will display the feedback status as Accepted or Rejected. You can track this status under each transaction.
Tax Department’s Recent Update In a post on X (formerly Twitter) on July 16, 2025, the Income Tax Department clarified:
“Taxpayers can provide feedback on every transaction in the AIS. Disputed entries are verified with the reporting source. AIS will show the feedback status as Accepted or Rejected.”
Bottom Line Reviewing your AIS isn’t just good practice—it’s essential for accurate tax filing and avoiding future notices. Ensure that all income listed in AIS is either correctly reported in your ITR or disputed through the AIS feedback process.
With AIS becoming central to tax compliance, taking five minutes now can save you weeks of stress later.
“Mismatch in your return. Please respond.” If this email lands in your inbox from the Income Tax Department, chances are you skipped a critical step: reviewing your Annual Information Statement (AIS) before filing your Income Tax Return (ITR).
As the tax filing season for FY 2024–25 (AY 2025–26) begins, millions of taxpayers are gathering documents and calculating deductions. But before clicking ‘Submit’ on your return, it’s essential to verify your declared income with the data in your AIS.
Why AIS matters
CA Nitesh Buddhadev, tax planner and wealth expert, shares a cautionary tale: “A friend filed everything on time. His return looked fine. But a missed income entry—clearly visible in the AIS—triggered a notice. It took weeks to resolve.”
This isn’t an isolated incident. The Income Tax Department has stepped up surveillance using AI and analytics, making it easier to flag even minor mismatches. A small oversight in reported income—especially if it differs from what’s captured in AIS—can result in automated scrutiny or even penalties.
What Is AIS?
The Annual Information Statement is a comprehensive summary of your financial footprint, compiled from data reported by banks, mutual funds, employers, brokers, and other institutions. It expands on Form 26AS, which only showed TDS, TCS, and a few high-value transactions.
AIS includes detailed records of:
Salary income
Bank and FD interest
Dividends (domestic and foreign)
Capital gains from stocks, mutual funds, ETFs
Property transactions
Overseas remittances
Rent received
High-value purchases (cars, jewelry, foreign travel)
It shows both aggregate and transaction-wise data with source details like account numbers, bank names, and dates. For example, if you earned ₹1,700 in savings account interest and ₹42,000 from FDs, Form 26AS might show only the FD (due to TDS), but AIS will reflect both.
What Happens If You Don’t Match It? Failing to reconcile your return with your AIS can lead to penalties up to 200% of the underreported tax and interest up to 24% per annum under Sections 234B and 234C of the Income Tax Act.
How to Check and Correct Your AIS Follow these steps to access your AIS:
Go to www.incometax.gov.in
Log in using your PAN/Aadhaar and password
Navigate to ‘Services’ > ‘Annual Information Statement (AIS)’
Click ‘Proceed’ to view it
To download the PDF, use the password: PAN (in lowercase) + Date of Birth (DDMMYYYY)
If you spot any discrepancies, click on the transaction and select ‘Add Feedback’ or ‘Optional’ to submit corrections.
Your feedback is then verified with the source institution. The AIS portal will display the feedback status as Accepted or Rejected. You can track this status under each transaction.
Tax Department’s Recent Update In a post on X (formerly Twitter) on July 16, 2025, the Income Tax Department clarified:
“Taxpayers can provide feedback on every transaction in the AIS. Disputed entries are verified with the reporting source. AIS will show the feedback status as Accepted or Rejected.”
Bottom Line Reviewing your AIS isn’t just good practice—it’s essential for accurate tax filing and avoiding future notices. Ensure that all income listed in AIS is either correctly reported in your ITR or disputed through the AIS feedback process.
With AIS becoming central to tax compliance, taking five minutes now can save you weeks of stress later.