## Why AIS Matters More Than Ever

The **Annual Information Statement (AIS)** introduced under Section 285BB of the Income Tax Act captures significantly more financial transactions than the old Form 26AS. The Income Tax Department pre-populates ITR data from AIS — which means **discrepancies between your actual income and AIS data can trigger automated scrutiny notices**.

## What AIS Contains That Form 26AS Does Not

| Information | Form 26AS | AIS |
|---|---|---|
| TDS/TCS | Yes | Yes |
| Advance tax / self-assessment tax | Yes | Yes |
| Salary | No | Yes (from employer) |
| Bank interest (savings + FD) | No | Yes (from banks) |
| Dividends | No | Yes (from companies/RTAs) |
| Mutual fund transactions | No | Yes (from AMFI/RTAs) |
| Securities transactions | No | Yes (from SEBI/exchanges) |
| Property transactions | No | Yes (from registrars) |
| Foreign remittances | No | Yes (from banks via FEMA) |
| GST turnover | No | Yes (from GSTN) |
| Rent received | No | Yes (from TDS filers) |

## Step-by-Step Reconciliation Process

### Step 1: Download AIS
Log in to [incometax.gov.in](https://www.incometax.gov.in) → AIS → Download AIS (JSON/PDF format) for FY 2024-25.

### Step 2: Download Form 26AS
From the same portal → e-File → Income Tax Returns → View Form 26AS → Download Part A and Part B.

### Step 3: Compare TDS/TCS credits
Every TDS entry in Form 26AS should also appear in AIS. If TDS is not reflected, the deductor may not have filed the TDS return — follow up with them before filing.

### Step 4: Verify salary figure
Cross-check the salary shown in AIS with your actual salary (Form 16 Part A). Significant differences — especially if AIS shows higher salary — need to be investigated.

### Step 5: Check bank interest
AIS pulls bank interest data directly from banks. Compare with your bank statements and Form 16A. Under-reporting of interest income is the most common mismatch.

### Step 6: Verify securities and mutual fund transactions
AIS shows all buy/sell transactions. Cross-check with your broker statement for capital gains computation. Long-term vs short-term classification must be verified.

### Step 7: Dispute inaccurate AIS entries
If AIS shows income that is wrong — for example, a joint account's interest attributed entirely to you — you can raise a **feedback/dispute** directly in the AIS module. The tax department reviews and may modify AIS. Always do this before filing.

## Filing With AIS Mismatches — What To Do

If there is a mismatch between what you are declaring and what AIS shows:

1. If AIS is **correct and you missed it**: Include the income in your ITR
2. If AIS is **wrong**: Submit feedback with supporting documents; file ITR with correct figures and be prepared to respond to any notice with evidence

*Reconciling AIS is the most important step before filing. Our CA team does this for every client as part of our standard [ITR filing](https://www.harunraaj.com/services/itr-filing) process.*

## Frequently Asked Questions

### What is the difference between AIS and Form 26AS?

Form 26AS primarily shows TDS/TCS credits and advance tax payments, while the Annual Information Statement (AIS) under Section 285BB captures a much broader range of financial transactions — including salary, bank interest, dividends, mutual fund and securities transactions, property deals, foreign remittances, and GST turnover.

### Why is AIS reconciliation important before filing ITR?

The Income Tax Department pre-populates ITR data from AIS, so discrepancies between your actual income and AIS data can trigger automated scrutiny notices. Reconciling AIS with Form 26AS and your actual records before filing ensures no income is under-reported or over-reported.

### What should I do if TDS shown in Form 26AS is not reflected in AIS?

If TDS entries in Form 26AS do not appear in AIS, the deductor may not have filed the TDS return correctly. Follow up with the deductor (employer, bank, or client) to ensure the TDS return is filed and corrected before you file your ITR.

### How do I download my AIS from the Income Tax portal?

Log in to incometax.gov.in, navigate to the AIS section, and download in JSON or PDF format for FY 2024-25. Compare every category — salary, interest, dividends, securities — against your own records and Form 16/16A.

### Can I dispute incorrect information shown in my AIS?

Yes. The AIS portal has a feedback mechanism where you can flag entries as incorrect, duplicate, or belonging to someone else. Submit feedback with supporting documentation — the department will update the record, though this may take time. Always file your ITR based on actual income, not AIS figures.

I'm CA Harun Raaj, Visakhapatnam. If any of this affects you or your business, reach out — I'd be glad to help.

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## See Also

- [Form 26AS vs AIS: The Mismatch That Triggers Income Tax Notices](https://www.harunraaj.com/blog/form-26as-vs-ais-mismatch-triggers-income-tax-notices)
- [Your RSUs Are Not Just Salary: The Two Separate Disclosures Required in AY 2026-27 ITR](https://www.harunraaj.com/blog/schedule-fa-rsu-foreign-assets-itr-2-ay-2026-27)
- [ESOP Tax Deferral for Startup Employees: The 48-Month Mechanism Most Tax Advisors Misexplain](https://www.harunraaj.com/blog/esop-tax-deferral-80-iac-startup-employees)

Canonical: https://www.harunraaj.com/blog/ais-form-26as-reconciliation