How to Fix AIS Inaccuracies While Filing Your Income Tax Return
Avoid mismatches, scrutiny notices, and tax complications by learning how to correct errors in your Annual Information Statement (AIS).
Filing your Income Tax Return (ITR) can be stressful – even more so when the data shown in your Annual Information Statement (AIS) is inaccurate. Introduced by the Income Tax Department to improve transparency, AIS provides a consolidated view of your financial transactions. But what happens when this system, meant to simplify tax compliance, ends up making it more complex?
Let’s explore how to spot and fix AIS mismatches, avoid scrutiny, and file your ITR with confidence.
What Is AIS and Why It Matters?
The Annual Information Statement (AIS) is a detailed record of your financial activities during the financial year. It includes:
- Bank interest
- Stock trades and capital gains
- Mutual fund transactions
- Property deals
- TDS/TCS data
- Foreign remittances, and more
Unlike Form 26AS, which focuses primarily on tax deducted and paid, AIS captures a wider range of financial transactions. However, this expanded scope also means more room for inaccuracies and mismatches.
Common AIS Errors to Watch Out For
1. Capital Gains Mismatch
AIS often misreports equity or mutual fund sale values.
– Example: You sold shares at ₹100, but AIS reports ₹101 – triggering a mismatch.
2. Real Estate Ownership Confusion
If you’re a co-owner in a property, AIS might reflect the entire transaction value in your name – even if you paid only half.
3. Fixed Deposit (FD) Interest Errors
FD interest is often shown lump-sum in the year of maturity, instead of spread over the years it accrued – inflating your taxable income.
4. Multiple PAN-Linked Reporting
Joint accounts, family-shared assets, and nominee-related income can appear under multiple PANs, leading to duplicate reporting.
Why You Must Fix AIS Errors Before Filing ITR
Inaccurate AIS data can lead to:
- ITR mismatch notices under Section 143(1)(a)or 143(2)
- Denial of deductions (like Section 80C, 54F)
- Scrutiny assessments
- Penal interest or additional tax liability
As CA Kinjal Bhuta rightly points out, even gifts of shares or property are often misclassified as income due to flawed AIS reporting systems.
Step-by-Step Guide: How to Correct AIS Mismatches
Here’s how you can fix errors in AIS via the Income Tax Portal:
How to File AIS Feedback Online:
1. Visit: incometax.gov.in
2. Log in using PAN and password
3. Go to “Annual Information Statement (AIS)”
4. Select financial year and transaction
5. Click “Optional” under ‘Provide Feedback’
6. Choose correct category (e.g., partially correct, not my transaction)
7. Upload supporting proof (bank statement, broker report, etc.)
8. Submit and save the reference number for future use
Pro Tip:
If feedback doesn’t resolve the issue, directly write to the reporting entity (e.g., bank, registrar, broker) for quicker correction.
Points to Remember While Reconciling AIS
- Always compare AIS with Form 26AS
