AIS Shows Foreign Dividend Not in Books: Income, TDS and Foreign-Tax-Credit Reconciliation
By Ravi Sisodia · Reviewed by CA Divyanshu Sengar · Updated 5 October 2026
2-minute summary
- If a foreign dividend appears in AIS but not in the books or personal tax working, do not copy the AIS amount blindly and do not ignore it. For AY 2026-27, AIS remains the legacy statement and supports feedback; the taxpayer is still responsible for a complete and accurate return even where AIS is incomplete or wrong. For Tax Year 2026-27 under the Income Tax Act, 2025, the evolved annual information statement is Form 168.
- For a resident taxpayer, foreign dividend can also trigger Schedule FSI, Schedule TR and Schedule FA reporting depending on status and facts. The ITR-2 manual confirms that FSI/TR/FA are the relevant schedules for residents with foreign income/assets, while NR/RNOR treatment differs. Foreign tax credit for an old-Act year uses Form 67; under the 2025 Act the notified FTC statement is Form 44.
- The reconciliation should start from broker/custodian statements and bank credits: gross dividend, withholding tax, currency conversion date/rate, country, security, beneficial owner and reporting period. AIS feedback is an evidence step, not a substitute for computing taxable income from primary records.
Current position
Control and evidence map
| # | Control / evidence requirement |
|---|---|
| 1 | Download AIS/legacy statement or Form 168 for the correct period and save the source-level transaction detail. |
| 2 | Reconcile gross dividend and foreign tax withheld to broker statements, custodian tax vouchers and bank credits. |
| 3 | Determine residential status before completing FA/FSI/TR schedules or their current-law equivalents. |
| 4 | Submit AIS feedback where the source data is duplicated, belongs to another person or is otherwise incorrect, but compute the return from actual records. |
| 5 | Use Form 67 for applicable old-Act foreign-tax-credit claims and the current Form 44 route under the 2025 Act, with proof of foreign tax. |
Worked example
A US broker reports USD 2,000 gross dividend and USD 500 withholding. AIS for AY 2026-27 shows only USD 1,500 as dividend because it picked up the net bank credit. The taxpayer should use the broker statement to report the correct gross income, reconcile the withholding, give AIS feedback where appropriate and claim eligible foreign tax credit through the old-Act Form 67 process. A similar item arising in TY 2026-27 must be routed through the new Act/Form 168/Form 44 framework.
Common mistakes
- Treating AIS as the legal computation instead of an information statement.
- Reporting only net foreign dividend after withholding tax.
- Claiming foreign tax credit without the applicable form/evidence.
- Ignoring the old-Act/new-Act boundary between AY 2026-27 and TY 2026-27.
Frequently asked questions
Can I simply change my books to match AIS?
No. Reconcile AIS to primary evidence and file the return on the correct facts.
Does Schedule FA apply to every NRI?
No. The return guidance distinguishes resident/RNOR/non-resident status.
What replaces Form 67 under the new Act?
Income-tax Rules, 2026 notify Form 44 for foreign income and foreign tax credit under the Income Tax Act, 2025.
Official sources
- Income Tax Department - Annual Information Statement - FAQs and feedback workflow (AIS / legacy AY workflow; reviewed 2026-10-03)
- Income Tax Department - ITR-2 Online User Manual - Schedule FSI, TR and FA (ITR-2; AY 2026-27 portal guidance)
- Central Board of Direct Taxes - Form 44 - Foreign income and Foreign Tax Credit under Income Tax Act, 2025 (Form 44 / rule 76(10); 2026-03-20)
Disclaimer
Educational and professional reference only; confirm the current law, rates and the facts of your case before relying on this page.