The Income Tax Department knows more about your finances than you might think. Every salary credit, bank interest, dividend payment, mutual fund purchase, property registration, share trade, credit card payment, and foreign remittance is reported to the Department by third parties-and all of it is compiled into a single document: your Annual Information Statement (AIS).
Launched in November 2021 as an expansion of the old Form 26AS, the AIS has quickly become the central pillar of India’s data-driven tax compliance infrastructure. Under the Income Tax Act, 2025 (effective 1 April 2026), AIS is governed by Section 510 (replacing old Section 285BB) and Rule 245 of the Draft IT Rules, 2026 (replacing old Rule 114-I). The prescribed form is now Form 168.
This guide covers what the AIS contains, where the data comes from, how it feeds into your ITR, the feedback mechanism, the consequences of mismatches, and practical steps to reconcile AIS with your tax return. For anyone managing income tax return filing (https://www.patronaccounting.com/income-tax-return), reviewing AIS before filing is no longer optional-it is the single most important pre-filing step.
What Data Does AIS Contain? 15+ Categories
AIS Part B contains your comprehensive financial profile, divided into the following categories:
| # | Category | Data Source | Examples |
|---|---|---|---|
| 1 | TDS/TCS Information | TDS/TCS returns filed by deductors/collectors | Salary TDS (Form 24Q), interest TDS (26Q), property TDS (26QB), TCS on purchases |
| 2 | SFT - Specified Financial Transactions | Banks, post offices, MF, registrars, companies, stock exchanges via Form 61A | Cash deposits > Rs 10L, FD > Rs 10L, credit card payments, property transactions > Rs 30L |
| 3 | Salary Income | Employer TDS returns (Form 24Q) | Gross salary, exemptions, deductions, tax computed |
| 4 | Interest Income | Banks, post offices, cooperative societies via SFT; TDS returns | Savings interest, FD interest, RD interest, PO deposits interest |
| 5 | Dividend Income | Companies distributing dividends via SFT | Dividend from shares (listed/unlisted), MF dividends |
| 6 | Capital Gains - Listed Securities | Stock exchanges, depositories (NSDL/CDSL) via SFT | STCG/LTCG on equity shares, equity MF units (reported half-yearly) |
| 7 | Capital Gains - MF Units | MF trustees via SFT | Sale proceeds, purchase cost, gain/loss on MF redemptions |
| 8 | Immovable Property Transactions | Registrars/Sub-Registrars via SFT | Purchase/sale of property > Rs 30 lakh (stamp duty value, transaction value) |
| 9 | Foreign Remittances | Authorised dealers / banks (Form 15CA/15CB data) | Outward remittances, TCS on LRS, foreign exchange purchases |
| 10 | AEOI / FATCA / CRS Data | Information received under bilateral agreements (Section 159 / 90 / 90A) | Foreign bank accounts, overseas investments, accounts reported by foreign jurisdictions |
| 11 | GST Turnover | GSTN data shared with IT Department | Annual GST turnover reported in GSTR returns |
| 12 | Tax Payments | OLTAS/Challan data | Advance tax, self-assessment tax, regular assessment tax, TDS/TCS credits |
| 13 | Demand and Refund | IT Department processing data | Outstanding demand, refund issued, refund adjusted |
| 14 | Pending Proceedings | IT Department case records | Assessment pending, appeal pending, rectification pending |
| 15 | Completed Proceedings | IT Department orders | Completed assessments, appeal orders, rectification orders |
| 16 | Other Information | Various sources as authorised by CBDT | Rent received (TDS 194-IB data), cash withdrawals > Rs 1 Cr (TCS 194N), crypto transactions |
For businesses using tax audit services (https://www.patronaccounting.com/tax-audit), the GST turnover data in AIS is particularly significant-it enables the Department to cross-verify business income declared in the ITR with GST turnover reported to GSTN. Any material discrepancy can trigger a reassessment.
Rule 245: The Legal Framework for AIS Under the 2025 Act
Rule 245 of the Draft IT Rules, 2026 (replacing old Rule 114-I) provides the procedural framework:
- Upload authority: The Director General of Income-tax (Systems) or any authorised person uploads the AIS in the taxpayer’s registered account on the e-filing portal.
- Form: Form 168 (new form under the 2026 Rules, replacing the earlier unnumbered AIS format).
- Governing section: Section 510 of the IT Act, 2025 (replacing Section 285BB of the 1961 Act).
- Timeline: AIS must be uploaded within 90 days from the end of the month in which the information is received. This is a new, explicit timeline-the old framework did not specify a deadline for AIS upload.
- Data scope: The AIS includes: (a) TDS/TCS information, (b) specified financial transactions (SFT), (c) tax payments, (d) demand and refund, (e) pending proceedings, (f) completed proceedings, (g) information from other officers/authorities/bodies performing functions under any law, (h) information received under DTAA or AEOI agreements (Section 159), and (i) any other information authorised by the Board.
For entities registered through company registration (https://www.patronaccounting.com/private-limited-company-registration), the AIS for the company itself will show TDS credits, SFT data (property, shares issued, dividends distributed), GST turnover, and tax payment history-all of which must reconcile with the company’s ITR.
AIS vs Form 26AS: What’s the Difference?
| Aspect | Form 26AS | AIS (Form 168) |
|---|---|---|
| Legal basis | Section 203AA (old) - TDS/TCS credit statement | Section 510 / Rule 245 - comprehensive financial profile |
| Data scope | TDS/TCS details, tax paid, refund, SFT summary, TDS defaults | All of 26AS + salary, interest, dividends, capital gains, property, MF, shares, foreign remittances, GST turnover, AEOI data, proceedings status |
| Feedback | No feedback mechanism for taxpayer | Full feedback mechanism: mark entries as incorrect, duplicate, or belonging to another person |
| Pre-filling | Limited pre-filling (TDS credits) | Comprehensive pre-filling of ITR using TIS (Taxpayer Information Summary) derived from AIS |
| Reported vs Modified value | Only reported value | Both reported value (as received from source) and modified value (after taxpayer feedback) |
| Status under new Act | Continues as TDS/TCS credit statement but AIS is the primary comprehensive document | Primary financial profile document under Section 510 / Form 168 |
Taxpayer Information Summary (TIS)
TIS is the processed, aggregated layer built on top of AIS. It displays:
- Value processed by system: The deduplication engine removes duplicates (e.g., if the same salary TDS is reported multiple times) and generates an aggregated value per income category.
- Value accepted by taxpayer / confirmed by source: This reflects adjustments based on taxpayer feedback or source entity confirmation. If you marked an interest entry as incorrect and provided feedback, the modified value appears here.
The TIS values are used for pre-filling your ITR. When you start filing your return on the e-filing portal, income fields (salary, interest, dividends, capital gains) are auto-populated from TIS. You can modify these values in the ITR, but any deviation from TIS triggers the Department’s mismatch algorithm.
How to Give Feedback on AIS
- Login to the e-filing portal. Navigate to Services > Annual Information Statement (AIS).
- Select the financial year. Review Part B data category by category.
- Click on any incorrect entry. For each entry, you can select: Information is correct, Information is not fully correct (enter the correct value), Information relates to other PAN/year, Information is duplicate, or Information is denied (you do not accept this transaction at all).
- Submit feedback. The modified value is recalculated. The reporting entity receives a notification to verify or confirm the correction.
- Export and upload. You can also use the offline AIS utility to save a draft feedback file, work on it, and upload the exported file through the Compliance Portal.
For taxpayers using professional accounting services (https://www.patronaccounting.com/accounting-services), AIS reconciliation before filing is a standard pre-filing service-it ensures that every entry in AIS is verified against actual bank statements, broker reports, and investment records before the ITR is prepared.
What Happens If AIS Data Doesn’t Match Your ITR?
The Department’s risk management system continuously compares AIS data with filed ITRs. Mismatches trigger escalating consequences:
- Automated mismatch notice (Section 143(1) equivalent): If the income declared in your ITR is lower than the income reflected in AIS (e.g., interest income in AIS is Rs 2 lakh but you declared Rs 50,000), the CPC may issue an automated adjustment notice.
- E-campaign / compliance notice: The Department’s Compliance Portal sends SMS/email campaigns asking you to explain the discrepancy or file a revised/updated return.
- Scrutiny selection: Persistent or material mismatches increase your risk score in CASS (Computer Assisted Scrutiny Selection), making your case more likely to be picked for detailed scrutiny.
- Reassessment: If the AIS reveals income that was not disclosed in the original return, the Department may initiate reassessment proceedings under Sections 155/156.
- Penalty for under-reporting: If the mismatch constitutes under-reporting of income, penalty under Section 439 (50% of tax on under-reported income; 200% if misreporting is established) may be levied.
Practical tip: Review your AIS at least 15 days before the ITR due date. Provide feedback on any incorrect entries immediately. Do not wait until the ITR is filed-by then, the reported values are already in the system and mismatches will be flagged automatically.
Old Framework vs New Framework
| Aspect | Old (IT Act 1961) | New (IT Act 2025) |
|---|---|---|
| Governing section | Section 285BB | Section 510 |
| Governing rule | Rule 114-I | Rule 245 |
| Form | No specific form number (AIS displayed on portal) | Form 168 |
| Upload timeline | Not explicitly prescribed | Within 90 days from end of month in which information is received |
| Upload authority | PDGIT(Systems) / DGIT(Systems) | DGIT(Systems) or any authorised person |
| Data sources | TDS/TCS, SFT, tax payments, demand/refund, AEOI | Same + information from officers/authorities under any law + agreements under Section 159 + any other authorised information |
| Feedback mechanism | Available (introduced in 2021) | Continued; TIS values used for pre-filling |
Common Mistakes to Avoid
Mistake 1: Not reviewing AIS before filing ITR. This is the single most common error. Many taxpayers file their ITR based on Form 16 and bank certificates alone, without checking AIS. If AIS contains additional income (interest from a forgotten FD, dividend from an old investment, capital gain on a stock sold through a demat account), it will create a mismatch.
Mistake 2: Ignoring AIS entries you don’t recognise. If AIS shows a transaction you don’t recognise (e.g., TDS deducted by an unknown entity, or a property transaction attributed to your PAN incorrectly), do not ignore it. Use the feedback mechanism to mark it as “information denied” or “relates to other PAN”. If you ignore it, the Department assumes you accept the data.
Mistake 3: Relying only on Form 26AS. Form 26AS is a subset of AIS. It primarily shows TDS/TCS credits. AIS shows everything-including SFT data (cash deposits, property purchases, MF transactions), AEOI data (foreign accounts), GST turnover, and capital gains. Always check AIS, not just 26AS.
Mistake 4: Not reconciling TIS with pre-filled ITR. The pre-filled ITR uses TIS values. If you modify any income figure in the ITR without first providing feedback on AIS, the system will record a discrepancy between TIS and your filed return. Provide feedback on AIS first, wait for the TIS to update, and then file the ITR.
Mistake 5: Missing the AIS mobile app. The “AIS for Taxpayer” mobile app allows you to check your AIS and provide feedback on the go. Downloading and reviewing it periodically (not just at filing time) helps catch errors early.
Key Takeaways
The Annual Information Statement (AIS) under Section 510 / Rule 245 / Form 168 of the new framework is the IT Department’s comprehensive financial profile for every taxpayer. It aggregates data from 15+ sources including TDS/TCS returns, SFT filings by banks and financial institutions, stock exchanges, depositories, registrars, GST network, and international information exchange under AEOI agreements.
Rule 245 introduces an explicit 90-day upload timeline and expands the data scope to include information from any officer, authority, or body performing functions under any law. The TIS (Taxpayer Information Summary) derived from AIS is used for pre-filling ITR forms.
Reviewing AIS before filing your ITR and providing feedback on incorrect entries is the most effective way to prevent mismatch notices, e-campaigns, scrutiny selection, and penalty proceedings. The feedback mechanism allows you to correct errors, mark duplicates, and deny transactions-all of which update the TIS values used for pre-filling.
Don’t File Your ITR Without Checking AIS First
AIS reconciliation is the first step in every professional ITR filing engagement-and it should be yours too. Whether you are an individual, HUF, firm, or company, the data in your AIS is what the Department will compare against your return. Mismatches that could have been resolved with a simple feedback submission can escalate into notices, reassessments, and penalties if ignored.
Explore our income tax compliance services (https://www.patronaccounting.com/income-tax-return) for AIS reconciliation, TIS verification, feedback filing, and ITR preparation under the new Act.
For queries, reach out at +91 945 945 6700 or WhatsApp us directly.
