ITR filing 2025: How taxpayers can fix AIS mismatches; lessons from a Rs 5 lakh error case

ITR filing mistakes: Tax advisory platform Tax Buddy recently highlighted a real-world case study to caution taxpayers about the importance of verifying their Annual Information Statement (AIS) before filing returns. The case involved a taxpayer, Rajesh, who discovered that his AIS reflected wrong entries worth Rs 5 lakh, creating anxiety about potential tax notices.

According to Tax Buddy, even a small mismatch in AIS can trigger an automated notice from the Income Tax Department. “Fix it before you get a mismatch notice,” the platform advised, urging taxpayers to proactively reconcile their AIS data with their own records.

How to correct errors in AIS

Taxpayers can rectify mistakes by selecting the incorrect entry in their AIS and using the ‘Optional’ or ‘Add Feedback’ feature to submit corrections. Once submitted, the Income Tax Department cross-checks this feedback with the original reporting source—such as a bank, broker, or registrar. If confirmed, the AIS is updated.

Monitoring the status of the feedback is crucial, as it will show whether the correction has been ‘Accepted’ or ‘Rejected’, ensuring taxpayers can take timely action.

Common AIS problem areas

Tax Buddy outlined the top pain points that often lead to mismatches:

Capital gains: AIS sometimes records the closing market price of a share instead of the actual trade price at which it was sold.

Real estate transactions: The full transaction value is often repeated under both co-owners’ PANs, inflating income.

Fixed deposit (FD) interest: While interest is taxed annually, AIS often repeats the full interest again at maturity.

Duplicates and errors: Wrong PAN entries, incorrect financial years, or duplicate broker/depository reports are frequent.

Step-by-step guide to corrections

To access AIS, taxpayers must log in at incometax.gov.in, go to Services (or e-File) → Annual Information Statement (AIS), select the relevant financial year, and open the AIS tile.

For each incorrect row, taxpayers can expand the transaction and click on ‘Add Feedback’. They must then choose the most suitable feedback reason from the official list, including:

Information is correct

Information is not fully correct

Information relates to other PAN/year

Information is duplicate/included in other information

Information is denied

Income is not taxable

Transfer not in the nature of sale

Next, taxpayers need to enter the correct values—amount, quantity, or date—along with a short remark (for example: “Sale at ₹100 on 14-Aug as per contract note; AIS shows closing price ₹101”).

Once submitted, taxpayers receive an acknowledgment in Activity History and a confirmation via SMS or email. The AIS then displays both reported and corrected values, while the Taxpayer Information Summary (TIS) reflects the revised numbers for pre-fill and reconciliation.

Examples of fixes

Capital gains mismatch: Choose “Information is not fully correct”, enter actual trade value, and add broker note details.

Real estate double count: Select “not fully correct” and enter only your share of ownership.

FD interest duplication: Use “duplicate/included in other information” and report only the current year’s interest.

Wrong PAN or duplicate broker entries: Choose “relates to other PAN/year” or “duplicate” as applicable.

Why it matters

The Annual Information Statement (AIS) provides a complete record of a taxpayer’s financial transactions, helping ensure accuracy while filing Income Tax Returns (ITR). It has two parts: Part A carries basic details such as PAN, Aadhaar, and contact information, while Part B captures tax deducted/collected at source, payments, refunds, and high-value financial transactions. AIS promotes voluntary compliance, enables prefilled returns, and allows users to give feedback or correct errors. Unlike Form 26AS, which only shows TDS/TCS, AIS offers a broader view of income and transactions. Verifying AIS reduces mismatches and prevents tax notices.

Tax Buddy emphasized that timely AIS corrections help taxpayers maintain accurate records, prevent compliance issues, and avoid unnecessary tax demands. With increasing reliance on AIS for pre-filled returns and cross-verification, vigilance is now more important than ever.