Why This Check Is Non-Negotiable
Ignoring discrepancies between your declared income and the data with the Income Tax Department is one of the most common reasons taxpayers receive notices. The department's systems automatically flag mismatches, which can result in delayed refunds, additional
tax demands, and even formal scrutiny of your tax return. A small error, such as overlooking interest income or a duplicate entry, can trigger these consequences. Taking the time to reconcile your records beforehand ensures a smoother, faster, and stress-free filing experience.
Your Three Key Financial Reports
The mismatch check revolves around three key documents available on the income tax portal: Form 26AS, the Annual Information Statement (AIS), and the Taxpayer Information Summary (TIS).
Form 26AS: This is your tax passbook. It primarily shows details of Tax Deducted at Source (TDS) and Tax Collected at Source (TCS), along with any advance tax or self-assessment tax you've paid.
Annual Information Statement (AIS): Introduced in 2021, the AIS is far more comprehensive. It consolidates a wide range of financial transactions linked to your PAN, including salary, interest, dividends, rent, and capital gains from securities and property sales. It pulls data from multiple sources like banks, mutual fund houses, and property registrars.
Taxpayer Information Summary (TIS): This is a simplified summary of your AIS. It groups transactions into clean categories, making it easier to read and cross-reference when filling out your ITR. The values in TIS are often used to pre-fill your return.
The Core Mismatch: What to Look For
The goal is to ensure the income you report in your ITR matches the information in your AIS and Form 26AS. Download all three documents from the e-filing portal and compare them against your own records like bank statements, salary slips, and investment statements. Pay close attention to:
Interest Income: AIS often shows interest from savings accounts and fixed deposits that people forget to report. Ensure the amount matches your bank's interest certificates.
Dividend Income: All dividend payments are reported in AIS.
Capital Gains: The sale of shares, mutual funds, or property is reported in AIS. These entries can be complex, so verify the sale value and date against your broker statements.
TDS/TCS Credits: Compare the tax credits in Form 26AS with your Form 16 (for salary) and other TDS certificates. Any missing credit needs to be addressed with the deductor.
Duplicate or Incorrect Entries: Sometimes, a single transaction might be reported twice, or an entry belonging to another PAN might appear in your statement.
Found a Mismatch? Here's What to Do
If you find a discrepancy in your AIS, don't ignore it. The portal has a mechanism to provide feedback. For any incorrect entry, you can select it and choose an option like 'Information is incorrect', 'Information is duplicated', or 'Information relates to another PAN'. You can then provide the correct details. The Income Tax Department will verify this feedback with the reporting entity. While the correction might take time to reflect, providing feedback creates a record that you have disputed the incorrect information. Crucially, you should always report your actual correct income in your ITR, regardless of any errors in AIS or Form 26AS. If you've already filed your ITR, you can file a revised return to correct the mistake.
