AIS vs Form 26AS for FY 2024-25: reconciliation playbook for ITR filers
AIS pulls SFT, securities, and remittance data that Form 26AS misses. Here is the reconciliation playbook FY 2024-25 ITR filers need before CPC issues a Section 143(1)(a) variance notice.
The ITR filing window for AY 2025-26 closed on 15 September 2025 for non-audit cases. If you filed in time but are now staring at a Section 143(1) intimation that adjusts your refund, the probable culprit is a mismatch between the figures you reported, the entries in your Annual Information Statement (AIS), and the credits visible in Form 26AS. This playbook walks through how the Income Tax Department reconciles these three datasets, where the gaps usually open up, and the exact feedback levers you can pull on the e-filing portal.
The Scenario
Asha, a Mumbai-based product manager with a CTC of Rs 28 lakh, filed her ITR-2 on 28 August 2025 declaring salary income of Rs 26.4 lakh, savings-bank interest of Rs 14,200 (claimed under Section 80TTA), and short-term capital gains of Rs 1.18 lakh from listed equities. Her AIS, downloaded the same day, reported salary credits of Rs 26.4 lakh (matching), savings interest of Rs 31,800 (Rs 17,600 higher), and securities transactions worth Rs 12.4 lakh of sale value with a derived gain of Rs 1.92 lakh. Form 26AS only showed the TDS of Rs 4.92 lakh deducted by her employer plus Rs 2,180 deducted by the bank under Section 194A. On 4 February 2026 she received a Section 143(1) intimation raising a demand of Rs 9,460 with interest under Sections 234B and 234C, citing 'variance with information available with the Department'.
Asha's problem is not unique. The Central Board of Direct Taxes (CBDT) confirmed in its FAQ refresh on the AIS portal that the majority of variance notices issued for AY 2024-25 traced back to taxpayers reconciling against Form 26AS only, ignoring the broader AIS feed. Form 26AS, in its post-June 2020 avatar, covers TDS, TCS, advance tax, self-assessment tax, refunds, and a thin slice of Specified Financial Transactions (SFT). AIS, operational from 1 November 2021, is a superset that ingests SFT reports, securities depository data, mutual fund registrar feeds, and foreign remittance entries under the Liberalised Remittance Scheme. To file accurately, you must learn to read both side by side, then defer to the Taxpayer Information Summary (TIS) for the final numbers that flow into your return. For background terms, Oquilia's glossary entries on AIS and Form 26AS are the right starting points.
Statutory Answer
AIS is the operational output of Section 285BB of the Income-tax Act, 1961, inserted by the Finance Act 2020 with effect from 1 June 2020. Section 285BB read with Rule 114-I of the Income-tax Rules, 1962 requires the Principal Director General (Systems) to upload an annual information statement in the prescribed manner. The full AIS, as rolled out from November 2021, is the expanded statement contemplated by this section. Form 26AS continues to exist as the narrower tax-credit statement and is governed by Rule 114-I in its current form.
The feeder data flows in via Section 285BA, which casts the SFT reporting obligation on banks, post offices, registrars, depositories, mutual funds, listed companies, and forex dealers. The SFT thresholds set out in Rule 114E include Rs 10 lakh of cash deposits in a savings account in a financial year, Rs 10 lakh of credit-card payments by any mode other than cash, Rs 30 lakh in immovable property purchases, and Rs 10 lakh of mutual-fund investment in an issuer. Once a reporting entity files its SFT under these thresholds, the entry lands in your AIS under the relevant information code.
Where AIS data feeds the return, Section 143(1)(a) authorises the Centralised Processing Centre (CPC) at Bengaluru to make six categories of prima facie adjustment, including disallowance of expenditure or inconsistency in any return item with information received under Section 133C or with information available with the Department. The proviso requires the CPC to issue a 30-day intimation through the portal before raising a demand. Practically, this is the trigger that converts an AIS-vs-return gap into a recovery notice.
Three rules govern feedback. First, the AIS Utility on incometax.gov.in allows the taxpayer to mark any line item with one of seven feedback codes: information is correct, transfer not in the nature of sale, income relates to another PAN, year not relevant, information is duplicate, denial of information, or customised. Second, the TIS auto-recomputes the processed value after every accepted feedback and exposes both the 'Reported Value' and the 'Modified Value'. Third, the return-of-income utility (ITR-2 and ITR-3) pre-fills from the Modified Value, so filed feedback should be reflected before the ITR is submitted.
Worked Resolution
Asha's reconciliation breaks into three steps. Step one is a head-to-head between AIS and 26AS; step two compares AIS-reported with AIS-modified (post-feedback); step three folds those modified numbers into the ITR. The table below uses her figures.
| Head | Form 26AS | AIS reported | TIS modified | ITR figure |
|---|---|---|---|---|
| Salary (gross) | Rs 26,40,000 | Rs 26,40,000 | Rs 26,40,000 | Rs 26,40,000 |
| TDS u/s 192 | Rs 4,92,000 | Rs 4,92,000 | Rs 4,92,000 | Rs 4,92,000 |
| Savings interest (SB A/c) | Not shown | Rs 31,800 | Rs 14,200 | Rs 14,200 |
| TDS u/s 194A on FD | Rs 2,180 | Rs 2,180 | Rs 2,180 | Rs 2,180 |
| Sale of listed equity | Not shown | Rs 12,40,000 | Rs 12,40,000 | Rs 12,40,000 |
| Derived STCG | Not shown | Rs 1,92,000 | Rs 1,18,000 | Rs 1,18,000 |
The Rs 17,600 savings-interest gap arose because AIS pulled a duplicate entry: Asha's joint-holder mother's savings account got attributed to Asha because she was the first holder of record. She submits feedback in category C ('Income relates to another PAN', with the mother's PAN noted) on the Rs 17,600 portion. The STCG variance of Rs 74,000 is the classic FIFO-versus-portfolio-statement issue: the depository's derived gain assumes default cost basis, while Asha actually held grandfathered units bought before 31 January 2018, attracting the higher base under Section 112A. She submits feedback in category G ('Customised') attaching her broker's contract-note PDF.
Once feedback is accepted, the TIS Modified Value drops in line with column 4 of the table. Step three is to plug those numbers into the ITR and pay the residual tax. With salary of Rs 26.4 lakh, savings interest of Rs 14,200, and STCG of Rs 1,18,000, her old-regime liability looks like this:
| Component | Amount (Rs) | Statute |
|---|---|---|
| Salary after standard deduction Rs 50,000 | 25,90,000 | Sec 16(ia), old regime |
| Savings interest (full) | 14,200 | Sec 56 |
| Section 80TTA (cap Rs 10,000) | (10,000) | Sec 80TTA |
| Income from other sources (net) | 4,200 | Sec 56 |
| Tax on slab income Rs 25,94,200 | 5,90,760 | Schedule I |
| STCG u/s 111A at 20% on Rs 1,18,000 | 23,600 | Sec 111A (post 23 July 2024) |
| Health & Education cess at 4% | 24,574 | Sec 2(11) Finance Act 2024 |
| Gross tax | 6,38,934 | |
| Less TDS (192 + 194A) | (4,94,180) | |
| Net payable | 1,44,754 |
A short-cut check is to run the same numbers through Oquilia's income-tax calculator, then sanity-test the STCG slice on the capital-gains calculator. Asha had paid Rs 1,35,294 as self-assessment tax in August 2025, leaving a residual Rs 9,460, which is precisely the figure CPC has demanded. Because the gap was procedural (AIS feedback not lodged before filing), there is no scope for rectification under Section 154; the right course is to accept the demand, pay it within 30 days of intimation, and submit the AIS feedback now so the next year's AIS does not carry the same defect.
If you suspect a similar variance is brewing on your file, work through it before 31 March 2026 so the assessment year does not lapse. The portal's AIS download feeds straight into Oquilia's TDS estimator, and the old-vs-new regime comparator shows where carrying the Rs 1,18,000 STCG to a different regime would have helped (it would not; Section 111A is rate-flat across regimes). For the regulatory grounding behind every code in your AIS, the Income Tax Department's official AIS handbook is hosted on incometax.gov.in. Section 285BB and Rule 114-I are searchable on the Income-tax Act, 1961 entry at indiacode.nic.in.
FAQ
What is the difference between AIS, TIS, and Form 26AS for FY 2024-25?
AIS is the granular feed (every TDS line, every SFT report, every securities transaction) under Section 285BB. TIS is the category-level summary that distils AIS into the heads that map to the ITR. Form 26AS, after Notification 30/2020 dated 28 May 2020, is the narrower tax-credit statement showing TDS, TCS, advance tax, self-assessment tax, refunds, and selected SFT. For FY 2024-25 filings, the Department expects you to reconcile against the TIS Modified Value, not raw AIS and not the slimmer Form 26AS.
Can I file my ITR if the AIS shows wrong income?
Yes. The portal lets you file ITR using your own figures, but you should submit AIS feedback first and let the TIS Modified Value update. If you file with figures lower than the TIS-modified number without lodging feedback, CPC will treat the variance as a prima facie inconsistency under Section 143(1)(a) and issue a 30-day notice. Oquilia's Section 143(1) intimation decode walks through what each row of that notice means.
What is the deadline to file AIS feedback?
There is no statutory deadline for AIS feedback under Section 285BB, but practically the feedback must be filed before the ITR is submitted so that the Modified Value flows into the prefill. After filing, feedback can still be lodged, but the variance will already have been picked up at the 143(1)(a) stage. If feedback is accepted post-intimation, a rectification request under Section 154 may be filed within four years of the order.
Why does AIS show transactions that are not mine?
The three usual reasons are: (a) joint-holder reporting where you are the first holder of record but not the beneficial owner, (b) SFT filer using the wrong PAN (common in mutual-fund SIPs where folio mapping drifts), and (c) duplicate reporting where the same transaction is filed by two reporting entities. For each, use AIS feedback categories C ('Income relates to another PAN', supplying the correct PAN), E ('Information is duplicate'), or F ('Denial of information') respectively.
Do I need to reconcile AIS if I am on the new tax regime under Section 115BAC?
Yes. The reconciliation requirement is regime-agnostic. Even though most Chapter VI-A deductions (other than the employer's NPS contribution under Section 80CCD(2)) are barred in the new regime, the income side of the return is identical, and 143(1)(a) adjustments apply the same way. Run your numbers through the new-regime calculator to see the net impact before you file.
How long is the AIS retained?
The Income Tax Department retains AIS data for at least eight assessment years on the e-filing portal, broadly aligned with the reopening windows under Section 149 as amended by the Finance Act 2021 and tightened by the Finance (No. 2) Act 2024. This means an AIS line filed today against your FY 2024-25 return can still be referenced in a reassessment several years out.
Does Form 26AS still matter once AIS is live?
Yes, for one specific reason: Form 26AS remains the legally relevant document for claiming TDS credit under Section 199 read with Rule 37BA. If a TDS entry is missing from 26AS, you cannot claim credit even if AIS shows it. So 26AS is your TDS-credit ledger, while AIS-TIS is your income-side reconciliation tool. Both must agree with your ITR for the return to process cleanly.
Sources & Citations
- Annual Information Statement — Help Topics — Income Tax Department
- Income-tax Act, 1961 (Sections 143, 285BA, 285BB) — India Code, Ministry of Law and Justice
- e-Filing Portal — Annual Information Statement Utility — Income Tax Department
Frequently Asked Questions
What is the difference between AIS, TIS, and Form 26AS for FY 2024-25?
AIS is the granular feed of every TDS, SFT, and securities transaction under Section 285BB. TIS is the category-level summary that maps to ITR heads. Form 26AS, after Notification 30/2020, is the narrower tax-credit statement showing TDS, TCS, advance tax, self-assessment tax, refunds, and selected SFT. The Department expects reconciliation against the TIS Modified Value, not raw AIS or 26AS alone.
Can I file my ITR if the AIS shows wrong income?
Yes, but submit AIS feedback first so the TIS Modified Value updates before you file. Filing with figures lower than the TIS-modified number without feedback will trigger a Section 143(1)(a) prima facie inconsistency notice with a 30-day reply window.
What is the deadline to file AIS feedback?
There is no statutory deadline under Section 285BB, but feedback should be lodged before the ITR is submitted so the Modified Value flows into the prefill. Post-filing feedback is allowed; if accepted after a Section 143(1) intimation, a rectification request under Section 154 may be filed within four years.
Why does AIS show transactions that are not mine?
Common reasons are joint-holder reporting where you are first holder but not beneficial owner, SFT filer using the wrong PAN (especially in mutual-fund folio mapping drift), and duplicate reporting by two reporting entities. Use feedback categories C (income relates to another PAN), E (duplicate), or F (denial) as appropriate.
Do I need to reconcile AIS if I am on the new tax regime under Section 115BAC?
Yes. Reconciliation is regime-agnostic. Although most Chapter VI-A deductions other than the employer's NPS contribution under Section 80CCD(2) are barred in the new regime, the income side of the return is the same and 143(1)(a) adjustments apply identically.
How long is the AIS retained?
The Income Tax Department retains AIS data for at least eight assessment years on the e-filing portal, aligned with reopening windows under Section 149 as amended by Finance Act 2021 and tightened by Finance (No. 2) Act 2024.
Does Form 26AS still matter once AIS is live?
Yes. Form 26AS remains the legally relevant document for claiming TDS credit under Section 199 read with Rule 37BA. If a TDS entry is missing from 26AS you cannot claim the credit even if AIS shows it. 26AS is your TDS ledger; AIS-TIS is your income-side reconciliation tool.