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  • AIS Shows Higher Income Than Your ITR? Complete Guide to Avoid Income Tax Notice in AY 2026-27

    AIS Shows Higher Income Than Your ITR? Complete Guide to Avoid Income Tax Notice in AY 2026-27

    CA Dipesh Gurubakshani June 2026 9 min read

    AIS Shows More Income Than Your ITR? Don’t Ignore It

    Have you checked your Annual Information Statement (AIS) before filing your Income Tax Return (ITR)?

    Many taxpayers receive Income Tax notices because the income reported in their ITR does not match the information available with the Income Tax Department through AIS.

    If your AIS shows higher income than what you have reported in your ITR, it could trigger scrutiny, notices, or demands from the Income Tax Department.

    In this guide, we explain what AIS is, common AIS mismatches, how to correct errors, and what steps you should take before filing your ITR for AY 2026-27.

    What is AIS (Annual Information Statement)?

    The Annual Information Statement (AIS) is a comprehensive statement available on the Income Tax Portal that contains details of various financial transactions reported to the Income Tax Department.

    AIS includes information such as:

    • Savings bank interest
    • Fixed deposit interest
    • Dividend income
    • Purchase and sale of shares and mutual funds
    • Salary income
    • Rent received
    • Foreign remittances
    • Credit card payments
    • High-value transactions
    • Tax Deducted at Source (TDS)
    • Tax Collected at Source (TCS)

    The Income Tax Department uses AIS to verify whether taxpayers have correctly reported their income in the ITR.

    Why AIS is Important Before Filing ITR

    Many taxpayers rely only on Form 16, bank statements, or investment records while filing their returns.

    However, the Income Tax Department compares your ITR with the data available in AIS.

    Even if you unintentionally omit income, the mismatch may result in:

    • Defective return notices
    • Scrutiny notices
    • Tax demands
    • Penalties
    • Interest liability

    Therefore, checking AIS before filing your return has become essential.

    Read our detailed guide on :How to Download AIS from the Income Tax Portal : The Ultimate Step by Step Guide for AY 2026-27

    Common AIS Errors and Mismatches

    1. Fixed Deposit Interest Not Reported

    Banks report FD interest to the Income Tax Department even if the interest is not credited to your account.

    Many taxpayers miss reporting FD interest, leading to an AIS mismatch.

    2. Savings Bank Interest Missing

    Interest earned from savings accounts is often overlooked while filing returns.

    However, banks report this information in AIS.

    3. Dividend Income Not Included

    Companies and mutual funds report dividend payments.

    Failure to report dividend income may create discrepancies.

    4. Capital Gains Not Reported Correctly

    Share and mutual fund transactions are reported by brokers and RTAs.

    Many taxpayers report only sale proceeds or forget to calculate capital gains accurately.

    5.Duplicate Reporting in AIS

    Sometimes AIS may show duplicate transactions due to reporting by multiple entities.

    Such cases require verification before filing.

    6. Incorrect Salary Information

    Employers may revise TDS returns, causing differences between Form 16 and AIS.

    7. High-Value Transactions

    Property purchases, foreign remittances, credit card payments, and other specified financial transactions may appear in AIS.

    Ignoring them can invite questions from the tax department.

    What Happens If You Ignore AIS Mismatches?

    Ignoring AIS discrepancies can lead to serious consequences.

    The Income Tax Department may:

    • Issue notices seeking clarification
    • Add omitted income during assessment
    • Levy additional tax
    • Charge interest under applicable provisions
    • Impose penalties in certain cases

    Many taxpayers receive notices simply because they failed to reconcile AIS before filing their return.

    How to Check AIS Online

    Follow these steps:

    1. Login to the Income Tax e-Filing Portal.

    2. Go to “Services”.

    3. Click on “Annual Information Statement (AIS)”.

    4. Open AIS and review all reported transactions.

    5. Compare AIS data with:

    • Form 16
    • Form 26AS
    • Bank statementsBank statements
    • Broker statements
    • Mutual fund statements
    • Books of accounts

    How to Submit Feedback in AIS

    If you find incorrect information in AIS, you can submit feedback directly through the portal.

    Common feedback options include:

    • Information is correct
    • Information is not fully correct
    • Information relates to another PAN
    • Duplicate information
    • Information is denied

    Providing feedback helps the Income Tax Department understand discrepancies and may prevent future issues.

    Example of an AIS Mismatch

    Mr. Sharma filed his ITR showing interest income of ₹12,000.

    However, AIS reflected:

    • Savings account interest: ₹12,000
    • FD interest: ₹45,000
    • Total interest as per AIS: ₹57,000

    Since FD interest was omitted from the return, the Income Tax Department may issue a notice seeking clarification.

    This is one of the most common AIS-related mistakes observed every year.

    Best Practices to Avoid AIS-Related Notices

    Before filing your ITR:

    • ✅ Download and review AIS
    • ✅ Compare AIS with Form 26AS
    • ✅ Verify bank interest income
    • ✅ Check dividend income
    • ✅ Review share and mutual fund transactions
    • ✅ Verify salary details
    • ✅ Reconcile TDS entries
    • ✅ Submit feedback wherever required
    • ✅ Seek professional assistance for complex transactions

    Frequently Asked Questions (FAQs)

    1. Is AIS mandatory for filing ITR?

    While AIS is not mandatory, checking it before filing your return is strongly recommended to avoid mismatches.

    2.Can AIS contain incorrect information?

    Yes. AIS may occasionally contain duplicate or incorrect entries. Such errors can be addressed through the feedback mechanism.

    3.Can I revise my ITR if AIS shows additional income?

    Yes, taxpayers can file a revised return within the prescribed time limit if any income was omitted.

    4. Will I definitely receive a notice if AIS and ITR do not match?

    Not necessarily. However, significant mismatches increase the likelihood of scrutiny or notices.

    Author

    CA Dipesh Gurubakshani is a Chartered Accountant with Adwani & Co LLP, Pune, specialising in income tax audit, direct taxation, and accounting advisory. He supports clients across statutory compliance, financial reporting, and income tax matters with a focus on accuracy, regulatory adherence, and disciplined execution.

    Disclaimer: ITRAdvisor.in is an educational and informational platform focused on tax awareness and compliance updates. Nothing contained herein should be construed as solicitation or advertisement of professional services. Professional services, where applicable, are rendered in accordance with ICAI guidelines. This article is published on ITRAdvisor.in, a tax and compliance knowledge platform. The content has been reviewed for technical accuracy by professionals associated with Adwani & Co LLP.

    Need Help With AIS Mismatch or Income Tax Notice?

    If your AIS shows higher income than your ITR, do not ignore it. Our team at ITR Advisor assists taxpayers across India and NRIs worldwide with:

    • AIS reconciliation
    • Income Tax Return filing
    • Revised Return filing
    • Income Tax Notice replies
    • Scrutiny and assessment support
    • Contact us today for professional assistance and ensure your return is filed accurately and compliantly.