If you have filed your Income Tax Return in the last three years, chances are you have already seen — or been confused by — a document called the Annual Information Statement (AIS). And if you have ever received a notice from the Income Tax Department that begins with ‘It appears that the income reported in your ITR does not match the information available with the Department’ — that mismatch almost certainly came from AIS.

Introduced by the CBDT in November 2021 as a more powerful successor to Form 26AS, AIS today captures over 57 categories of financial transactions linked to your PAN — from your bank’s savings account interest to the ₹15 lakh property you bought, from a single mutual fund redemption to that foreign trip you took last December. In 2026, with the Income Tax Rules 2026 notifying Form 168 as the updated AIS format that supersedes Form 26AS, AIS has officially become the single source of truth for your tax profile.

The good news? AIS is a tool designed to help you, not catch you. The bad news? Most taxpayers ignore it until they get a notice. At CleverCoins, we handle dozens of AIS mismatch cases every month for clients across Mumbai, Thane, and pan-India. This blog is your complete, step-by-step guide on what AIS is, why mismatches happen, and exactly how to fix them — before the Income Tax Department comes knocking.

1. What is the Annual Information Statement (AIS)?

The Annual Information Statement is a comprehensive year-wise summary of a taxpayer’s financial activity — incomes received, taxes deducted, high-value transactions executed, refunds issued, and demands raised — all consolidated against the taxpayer’s PAN. It is generated and maintained by the Income Tax Department’s Centralised Processing Centre (CPC) using data reported by hundreds of ‘Reporting Entities’ across India.

AIS was rolled out under Section 285BB of the Income Tax Act, 1961 read with Rule 114-I of the Income Tax Rules, 1962. Section 285BB empowers the Principal Director General of Income-tax (Systems) to upload a consolidated information statement against every PAN-holder for each financial year.

Why AIS was introduced — the four core objectives

• Display complete information to the taxpayer before ITR filing, with a facility to capture online feedback.
• Promote voluntary compliance through full transparency about what the Department already knows.
• Enable seamless pre-filling of Income Tax Returns to reduce filing errors.
• Deter non-compliance and under-reporting by closing information asymmetry between the taxpayer and the Department.

2. AIS vs Form 26AS vs TIS — The Three Documents Explained

This is where most taxpayers get confused. You have three different statements on the e-filing portal, and they overlap but are NOT identical. Let’s settle this once and for all.

Bottom line for the taxpayer

Form 26AS / Form 168 is your tax credit document — what TDS has been deducted and credited to your PAN. AIS is your information document — every transaction the Department knows about. TIS is your pre-fill helper — a clean summary of AIS used to pre-populate ITR fields. Always reconcile all three before filing.

3. Structure of AIS — Part A and Part B Explained

AIS is organised in a deliberately simple structure so taxpayers across age and digital comfort can navigate it. There are exactly two parts.

Part A — General Information

This is the identity section. It contains your PAN, masked Aadhaar number, name, date of birth (or incorporation/formation for non-individuals), mobile number, email address, and registered address as per Income Tax records. If any detail here is wrong, you must update it on the e-filing portal under ‘My Profile’ before submitting any feedback.

Part B — Comprehensive Financial Information

This is the meat of the statement. Part B is further broken down into category-wise tabs, each showing the reported value (what the Reporting Entity submitted to the Department) and the modified value (the value after considering your feedback or source confirmation).

The information in Part B is organised under the following tabs:

• TDS/TCS Information — All tax deducted or collected at source against your PAN.
• SFT Information — Statement of Financial Transactions reported by banks, mutual funds, RTAs, sub-registrars, etc.
• Payment of Taxes — Advance tax, self-assessment tax, regular assessment tax.
• Demand and Refund — Any outstanding demand or refund issued.
• Other Information — Foreign remittances, interest from EPF/PPF, salary, business receipts, dividend, securities transactions, and dozens more.

4. The 57+ Categories of Information Captured in AIS

CBDT has notified 57 broad categories of income, expenses, and transactions that are reported in AIS. This list keeps expanding each year as the Department onboards more Reporting Entities. Here is a comprehensive list of the major categories most taxpayers will encounter.

Income-related information

• Salary received and TDS u/s 192.
• Interest from savings bank account, fixed deposits, recurring deposits, post office deposits.
• Dividend income from companies, mutual funds, REITs, InvITs.
• Rent received and rent paid (above ₹50,000 per month attracts TDS u/s 194-IB).
• Business and professional receipts where TDS has been deducted (194C, 194J, 194H, 194I).
• Income on units of mutual funds, including redemption proceeds.
• Pension income from employer or government.
• Income from royalty, commission, brokerage.

Investment and capital gains information

• Purchase and sale of listed equity shares (reported by stock exchanges).
• Purchase and sale of mutual fund units (reported by RTAs like CAMS, KFin).
• Sale of bonds, debentures, securities.
• Off-market transfers of securities.
• Receipt of foreign currency for purchase of foreign securities.
• Buy-back of shares by listed and unlisted companies.

High-value transactions (SFT)

• Cash deposit aggregating ₹10 lakh+ in savings accounts or ₹50 lakh+ in current accounts during the year.
• Cash payments of ₹10 lakh+ for purchase of demand drafts, pay orders, banker’s cheques.
• Credit card payments aggregating ₹1 lakh+ in cash or ₹10 lakh+ in any mode.
• Purchase of immovable property (₹30 lakh+) — reported by sub-registrars.
• Cash payment for goods/services ₹2 lakh+ — reported by sellers.
• Purchase of bonds/debentures of ₹10 lakh+ from a company.
• Purchase of shares (including share application money) of ₹10 lakh+ from a company.

Foreign and other transactions

• Foreign remittance under Liberalised Remittance Scheme (LRS) — TCS u/s 206C(1G) attracted.
• International credit card spends abroad (under LRS effective from 1 October 2023).
• Foreign travel package payments — TCS u/s 206C(1G).
• Purchase of motor vehicle exceeding ₹10 lakh — TCS u/s 206C(1F).
• Virtual Digital Asset (VDA / crypto) transactions — TDS u/s 194S.
• Online gaming winnings — TDS u/s 194BA.
• EPF interest above ₹2.5 lakh contribution threshold.
• Receipt of gifts above ₹50,000 (where reported).

5. Who Reports This Information? The Sources of AIS Data

AIS does not generate data by itself. It aggregates information from hundreds of Reporting Entities mandated under Section 285BA (SFT) and Section 200/206C (TDS/TCS) of the Income Tax Act, 1961.

• Banks — savings/current accounts, FDs, cash deposits, credit cards, loans.
• Mutual Fund Houses & RTAs (CAMS, KFin) — purchases, redemptions, switches, dividend.
• Stock Exchanges & Depositories (NSE, BSE, NSDL, CDSL) — equity transactions.
• Sub-Registrars (under MoFA) — immovable property transactions.
• Authorised Forex Dealers — foreign remittances and LRS data.
• Insurance Companies — premium payments above ₹5 lakh in a year.
• Issuers of Shares/Bonds/Debentures — investments above ₹10 lakh.
• Sellers of motor vehicles, jewellery, immovable property.
• Tax Deductors and Tax Collectors — TDS and TCS data.
• Other Government Authorities — under Section 90/90A, GST, MCA exchange of information.

6. How to Access Your AIS — Step-by-Step (2026 Version)

AIS is accessible through two channels: the Income Tax e-Filing Portal and the dedicated mobile app ‘AIS for Taxpayer’. Both channels are synchronised — feedback given on one is immediately visible on the other.

Method 1: Via the e-Filing Portal (incometax.gov.in)

• Step 1: Visit incometax.gov.in and log in using your PAN/Aadhaar and password.
• Step 2: From the top menu, navigate to Services → Annual Information Statement (AIS).
• Step 3: Click ‘Proceed’ — you will be redirected to the Compliance Portal.
• Step 4: On the AIS homepage, you will see two tiles: TIS and AIS. Click on AIS.
• Step 5: Select the relevant Financial Year (e.g., FY 2025-26 for AY 2026-27).
• Step 6: AIS opens with Part A (General Info) and Part B (Comprehensive Info). Click any category to drill down to transaction-level details.
• Step 7: Download AIS in PDF, JSON, or CSV format using the download icon.

Method 2: Via the AIS for Taxpayer Mobile App

The Income Tax Department’s official ‘AIS for Taxpayer’ mobile app is available on both Google Play Store and Apple App Store. It mirrors the web portal exactly and is perfect for on-the-go review.

• Download the app, register using your PAN, set a 4-digit MPIN.
• Authenticate using OTP sent to the mobile number registered with PAN.
• View AIS and TIS tiles, drill into any category, and submit feedback — all from your phone.
• Built-in chatbot ‘IVA’ answers common queries.

Password for downloaded AIS PDF

The downloaded AIS PDF is password-protected. Use this format: your PAN in lowercase + date of birth in DDMMYYYY format, with no spaces. Example: if PAN is ABCDE1234F and DOB is 21 January 1991, the password is abcde1234f21011991. For non-individual taxpayers, use date of incorporation/formation.

7. Why AIS Mismatches Happen — The 7 Most Common Reasons

Before we get into how to fix AIS, let’s understand why mismatches happen in the first place. In our experience at CleverCoins, almost every AIS notice we handle falls into one of these seven buckets.

Reason 1 — Same transaction reported by multiple sources

Example: You sold a mutual fund. The AMC reports the redemption, AND your broker reports it, AND your depository may also report it. AIS may show the same transaction twice or thrice, inflating your apparent income.

Reason 2 — Reported in the wrong PAN

If a bank or broker has uploaded a transaction against a wrong/similar PAN (typical for common names with multiple PANs in the system), the income appears in someone else’s AIS who has no real connection to it.

Reason 3 — Reported in the wrong financial year

Quarterly TDS returns sometimes report transactions in the wrong quarter or year, especially for income accrued at year-end.

Reason 4 — Gross vs net value confusion

Mutual fund redemptions often show gross sale value in AIS, but for ITR you need net of acquisition cost (which is your capital gain). Treating the AIS figure as ‘income’ would massively overstate your tax.

Reason 5 — Joint holders treated as full owners

Joint bank FDs or property purchases sometimes get reported in the AIS of every joint holder at the full value, instead of being apportioned. The ‘second’ holder’s AIS suddenly shows income or transactions that belong to the primary holder.

Reason 6 — Transactions related to deceased parents / minors

Inherited accounts not yet closed continue to show transactions in the deceased’s AIS or in the legal heir’s AIS. Minor’s income clubbed with parent’s may also appear separately.

Reason 7 — Incorrect classification by the Reporting Entity

A bank might classify a maturity payout as ‘interest’, when actually only the interest portion is taxable. A broker might classify an off-market transfer as a ‘sale’. These classification errors inflate apparent income.

8. The 7 Feedback Options Explained — Pick the Right One

This is the most important section of the entire blog. AIS gives you exactly 7 feedback options for every transaction shown. Choosing the wrong feedback type can delay correction or even trigger further verification. Here is what each option actually means, with real-life examples.

9. How to Submit AIS Feedback — Step-by-Step

Submitting AIS feedback is a 6-step process. Anyone with basic e-filing portal access can do this without external help. Here is exactly how.

• Step 1: Log in to incometax.gov.in → Services → Annual Information Statement (AIS) → Proceed.
• Step 2: Click on the AIS tile → select the relevant Financial Year.
• Step 3: Navigate to the category and click on the specific transaction you want to correct.
• Step 4: Click ‘Optional’ / ‘Provide Feedback’ beside the transaction.
• Step 5: Select the appropriate feedback option from the 7 available types. Fill in the modified value (if applicable) and add remarks if needed.
• Step 6: Submit. You will get an Acknowledgement Number. Keep this safely.

Important: There is no limit on feedback submissions

You can submit, modify, or revoke your feedback as many times as you want until the data is correct. So don’t worry about getting it perfect the first time.

New 2024-26 feature: Real-time confirmation status

CBDT has rolled out a new functionality that lets you track the status of your feedback in real time. After you submit feedback, AIS now displays whether the feedback has been shared with the source for confirmation, the date it was shared, the date the source responded, and whether the source accepted (full/partial) or rejected your feedback. This was a significant transparency upgrade — previously, taxpayers had no visibility on what happened after submission.

10. After Feedback: How AIS Gets Corrected

Once you submit feedback, here is what happens behind the scenes — important to understand because it sets realistic expectations.

• The ‘Modified Value’ immediately updates in your AIS based on your feedback.
• The ‘Reported Value’ (the original value submitted by the source) remains visible for audit trail.
• For TDS/TCS and SFT data, your feedback is automatically shared with the Reporting Source for confirmation.
• The Source has a defined timeline to confirm/reject your feedback. If they accept, they must file a correction statement.
• Once the correction statement is filed, the corrected value flows into your AIS as the new Reported Value.
• Your TIS automatically gets updated based on the latest accepted values.
• The corrected pre-fill data flows into your ITR when you log in to file.

11. AIS-ITR Reconciliation — The Critical Pre-Filing Step

Even if your AIS is fully correct, you must independently report all your income in the ITR. AIS is a reference, not a substitute. Many taxpayers wrongly assume that whatever is in AIS will automatically be in their ITR — that is not true.

12. What Happens If You Ignore AIS Mismatches — Real Consequences

AIS is not optional. Ignoring mismatches has serious financial and procedural consequences. Here is what is actually at stake.

Notice under Section 139(9) — Defective Return

If your ITR shows substantially less income than AIS without explanation, the Department may treat your return as defective. You get 15 days to respond — failing which the return is treated as ‘not filed’.

Notice under Section 143(1)(a) — Proposed Adjustment

This is the most common AIS-related notice. CPC adjusts your reported income upward based on AIS data, recomputes tax, and asks you to respond. Interest and penalty may apply if the adjustment is upheld.

Notice under Section 148 — Income Escaping Assessment

If the mismatch is large (₹50 lakh+) or if you have crossed the reassessment threshold under amended provisions, the Department can reopen your case for up to 10 years for serious mismatches.

Penalty under Section 270A — Under-reporting / Misreporting

Under-reporting attracts 50% penalty of the tax payable on under-reported income. Misreporting (i.e., wilful concealment) attracts 200% penalty. AIS mismatches that aren’t explained satisfactorily can fall into either bucket.

Practical consequences

• Refund gets withheld until reconciliation is complete.
• Future ITRs face higher scrutiny if you have unresolved AIS issues.
• Loan and visa applications get delayed due to pending tax notices.
• In serious cases, prosecution under Section 276C for wilful tax evasion (rare but real).

13. Key 2026 Updates to AIS Every Taxpayer Must Know

Form 168 replaces Form 26AS

Under the Income Tax Rules 2026 (notified ahead of the new Income Tax Act, 2025 coming into effect on 1 April 2026), Form 168 has replaced Form 26AS as the official Annual Information Statement format. Form 168 includes the Taxpayer Information Summary and all financial details linked to the PAN in one consolidated document. The functionality remains broadly similar, but the form structure and download format have been updated.

Real-time feedback confirmation status (live since 2024)

As covered above, you can now track whether the source has accepted or rejected your feedback, with exact dates. This dramatically improved AIS’s transparency.

Expanded SFT reporting on crypto and online gaming

Effective FY 2024-25 and continuing in FY 2025-26, Virtual Digital Asset (VDA) transactions and online gaming winnings are now captured in AIS via TDS under Sections 194S and 194BA. If you have done crypto trades or earned from gaming platforms, expect these to appear in your AIS — and you must report them in your ITR even if no TDS was deducted.

International credit card spends now reported

Effective October 2023 and continuing in 2026, international credit card spends made outside India are captured under LRS and reported in AIS. TCS @ 20% applies on amounts exceeding ₹7 lakh in a financial year (₹10 lakh for education and medical purposes).

Mobile app upgrades

The ‘AIS for Taxpayer’ mobile app has received successive UI upgrades. The chatbot ‘IVA’ has been enhanced to answer feedback-related queries in real time. Push notifications now alert you when a new transaction is added to your AIS.

14. Top 10 AIS Mistakes That Trigger Notices