Form 26AS vs AIS: How to Handle Mismatches for AY 2025-26

Form 26AS vs AIS: Discrepancy issues & How to handle them for AY 2025-26

Introduction

As the ITR filing season for A.Y. 2025-26 gains momentum, two documents are essential for every taxpayer to cross check — Form 26AS and the Annual Information Statement (AIS). While both offer information about your taxes and income, mismatches between them are increasingly common and can lead to defective returns or scrutiny notices.

In this article, we will understand the key differences, explore common discrepancies, and learn a step-by-step method to reconcile and correct such mismatches.

What is Form 26AS?

Form 26AS is a consolidated annual tax statement, showing TDS/TCS deductions made by deductors.

What is AIS (Annual Information Statement)?

AIS is a comprehensive statement introduced by the Income Tax Department to provide taxpayers with detailed financial and income-related information including:

• TDS/TCS transactions (like Form 26AS)
• Interest, dividends, capital gains
• Specified Financial Transactions (SFTs)
• Foreign remittances under LRS
• Rent, lottery winnings, share trading income
• GST turnover (for businesses)

Key Differences Between Form 26AS and AIS

Common Discrepancies Faced by Taxpayers

1.Mismatch in interest income (e.g., bank FD interest missing from ITR but shown in AIS)

2. Difference in TDS amount between 26AS and AIS

3. Capital gains incorrectly reported or duplicated

4. Wrongly mapped PAN by banks or reporting entities

5. Dormant or closed accounts still showing entries

Step-by-Step Approach to Reconcile and Correct Mismatches

Step 1: Download Both Form 26AS and AIS

• Login to incometax.gov.in

Go to e-file → View Form 26AS

• Visit compliance.insight.gov.in

Go to AIS → View/Download AIS (PDF or JSON)

Step 2: Compare Both Statements

• Cross-check TDS entries, interest incomes, capital gains, and other SFTs
• Ensure that entries appearing in AIS are either:

Accurately declared in your ITR

Or marked for correction (if incorrect)

Step 3: Submit Feedback on AIS Portal

• Log in to AIS Portal → Click “Provide Feedback”
• Select correct feedback option:

Information is correct

Income not taxable

Duplicate entry

Incorrect amount

Not related to PAN

• Upload supporting documents, if available

Step 4: File Return Based on Corrected Data

• Use Form 26AS for TDS credit (this is final and binding)
• Use Corrected AIS for income details
• Always report actual income, even if not present in AIS or 26AS
• Do not report disputed entries until they are resolved

Practical Tips for Taxpayers

• Always cross-check AIS before filing to avoid defective notices
• Senior citizens and salaried individuals often miss interest incomes — reconcile all bank accounts
• Use Form 16, capital gain statements, AIS and 26AS together for full accuracy
• If unsure, consult a tax professional for guidance

Conclusion

With the enhanced data reporting under AIS, the onus is now on the taxpayer to validate and report income correctly. Ignoring mismatches between Form 26AS and AIS can lead to notices under Section 143(1), defective return flags, or even scrutiny.

Proactive reconciliation is the key. By following the step-by-step process detailed above, you can ensure a smooth and compliant filing experience for AY 2025-26.