Annual Information Statement Reconciliation Under New Act: FAQ for Founders, CFOs and Individuals
By Finin2min Research DeskP0 — Pre-ITR FilingUpdated June 2026ITR Season 2026
Before you file your AY 2026-27 ITR this July, spend 30 minutes on the Annual Information Statement. The AIS is the department's master view of your financial life — it aggregates data from 37 different sources including banks, mutual funds, brokers, property registrars, and GST authorities. If your ITR doesn't match the AIS, CPC's automated system will raise a demand. If you don't reconcile first and correct errors in AIS, you risk filing an incorrect ITR or triggering scrutiny. This guide covers every AIS category, common mismatch patterns, and how to submit feedback before July 31.
Use the Income Tax CalculatorModel the tax impact alongside this guide.
Identify unreported income; submit feedback for errors; pre-fill source for ITR portal
TIS (Taxpayer Information Summary)
Consolidated summary of AIS after applying taxpayer feedback and deduplicating
Derived from AIS after feedback processing
Final pre-fill source for ITR portal; what CPC uses for automated processing
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Always Reconcile AIS Before Filing ITR: The ITR portal's pre-fill pulls from TIS, which is derived from AIS. If you file AIS feedback and correct an error, the TIS updates and the pre-fill refreshes. But if you file your ITR before submitting feedback, the ITR is filed with potentially incorrect pre-fill data — and you'll need to file a revised ITR to correct it.
The 18 AIS Information Categories — What Gets Reported
AIS Part B contains transaction data across 18 information categories. Here is what each captures and the common mismatch patterns:
AIS Code
Category
Who Reports
Common Mismatch Issue
SFT-001
Cash deposits in savings account exceeding ₹10 lakh in a year
Banks
Multiple accounts in same bank; joint account reported under each holder
SFT-002
Cash deposits in time deposits (FD) exceeding ₹10 lakh
Banks / Post Offices
FD renewal shows as new deposit; cumulative interest added to principal
SFT-003
Cash repayment of credit card bills exceeding ₹1 lakh in aggregate / ₹10 lakh by any other mode
Banks
Credit card payment showing as "deposit"; no taxable income implication if paid from own account
SFT-004
Purchase of bank drafts/pay orders/foreign exchange with cash exceeding ₹10 lakh
Banks
Travel forex purchases; gift cards
SFT-005
Mutual fund purchases exceeding ₹10 lakh
MF RTAs (CAMS, KFintech)
SIP purchases shown as lump-sum; switch-in treated as new purchase
SFT-006
Purchase of listed equity shares exceeding ₹10 lakh
Depositories / Brokers
Shares received as bonus or rights shown as "purchase" at zero cost
SFT-007
Immovable property purchase exceeding ₹30 lakh
Sub-registrar office
Stamp duty value vs actual consideration mismatch; joint buyer — both PANs get full amount
SFT-008
Immovable property sale — amount received exceeding ₹30 lakh
Sub-registrar office
Same as SFT-007 — stamp duty value used, not actual sale proceeds
SFT-010
Receipt of cash payment exceeding ₹2 lakh for goods/services
Dealers, restaurants, hotels
Cash received in business — should match declared business income
SFT-011
Interest paid on savings/recurring deposits
Banks
Accrual vs receipt mismatch for non-cumulative FDs; TDS already deducted but interest shows again
SFT-012
Dividend paid by companies/mutual funds
Companies, MF distributors
Dividend from old physical shares (not in demat); IDCW from mutual funds vs growth redemption
SFT-013
Immovable property purchase / sale (additional data)
Registrars
Partial consideration shown; undivided share in property
SFT-014
Salary and perquisites
Employers
Perquisites shown gross; ESOPs double-reported by employer and depository
SFT-015
Rent received / rental income
Tenant companies (who deduct TDS under Section 194I)
Rent received shown at gross; actual net rent after deductions differs
SFT-016
Interest paid / credited to NRI accounts
Banks for NRI accounts
FCNR interest (tax-exempt) shown as regular interest income
SFT-017
Foreign remittance received
Banks under FEMA reporting
Gift from abroad shown as income; return of loan repayment shown as income
SFT-018
GST turnover reported
GSTN
GST turnover includes exempt supply; IGST on exports included in turnover
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Securities transactions (capital gains)
Exchanges / depositories
Full redemption value shown as income (not just gain); FY cutoff mismatch on T+1/T+2 settlement
How to Submit AIS Feedback — Step by Step
AIS feedback is how you tell the department that a reported transaction is incorrect, duplicated, or not taxable. After you submit feedback, the TIS (which feeds ITR pre-fill) reflects the corrected position.
Portal Path
Login to incometax.gov.in → Services → Annual Information Statement (AIS) → Download AIS PDF or view online → Click on any transaction → Click "Feedback" → Select feedback category → Submit.
AIS Feedback Categories Available
Feedback Option
When to Use
Information is correct
When transaction amount and type are accurate — no change needed
Information is not fully correct
When amount is wrong (e.g., stamp duty value vs actual sale price); provide correct amount
Information relates to other PAN / year
When transaction belongs to a different PAN (e.g., reported under your PAN but belongs to your spouse)
Information is duplicate / included in other information
When same transaction appears twice (e.g., ESOP reported by employer AND depository)
Information is denied
When you have no knowledge of the transaction (rare; use carefully)
Income is exempt
When amount is correct but not taxable (e.g., FCNR interest for NRI, agricultural income)
Information is included in the ITR
When you have already declared the income in your ITR; use to close the loop
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AIS Feedback Does Not Change the Source Data: When you submit feedback on AIS, you are adding your perspective — the original reported data from the SFT filer (bank, broker, registrar) is not deleted. The department can still see the original data alongside your feedback. If your feedback is inconsistent with the underlying transaction, the AO may question it during scrutiny. Ensure your feedback is accurate and supported by documentation.
Case Study: Sunita's AIS Shows ₹1.8 Crore "Income" on ₹14 Lakh Salary
Sunita downloaded her AIS for FY 2025-26 before filing her July 2026 ITR. She was shocked to see the AIS showed ₹1.8 crore in "total reported amount" — her salary is ₹14 lakh. Here is what she found category by category:
SFT-005 (MF Purchase): ₹8.4 lakh — her SIPs across 3 funds for the year. These are PURCHASES not income. Feedback: "Transaction relates to purchase — not income."
SFT-006 (Share purchase): ₹11.2 lakh — equity bought via broker. Purchase, not income. Same feedback.
Securities — Redemption: ₹24 lakh — her mutual fund redemptions. AIS shows GROSS redemption value; actual LTCG was ₹3.2 lakh after cost. Feedback: "Amount partially correct — actual gain is ₹3.2 lakh, not ₹24 lakh." She provided her capital gains statement.
SFT-007/008 (Property): ₹1.4 crore — she sold her Hyderabad flat for ₹1.2 crore. Registrar reported stamp duty value of ₹1.4 crore. Feedback: "Amount not fully correct — actual sale consideration ₹1.2 crore; stamp duty value ₹1.4 crore. Section 50C(2) declared in ITR."
Interest: ₹1.8 lakh — bank FD interest across 4 banks. All correctly declared in her ITR.
After feedback, her TIS showed taxable income that aligned with her ITR. The pre-fill refreshed, and she filed her ITR without any mismatch.
AIS Raw Amount
₹1.8 crore
Actual Taxable Income
~₹21 lakh
Feedback Items Filed
6 corrections
ITR Filed With Mismatch?
No — clean filing
Sector-Specific AIS Reconciliation Tips
For Founders and Startup Employees
ESOP perquisites: Employer reports under SFT-014; depository (NSDL/CDSL) reports the share purchase under SFT-006. Submit feedback on SFT-006 entries as "Duplicate — included in SFT-014 / Form 16." Employer's Form 16 is the correct source.
Secondary sale of unlisted shares: These may not appear in AIS at all (no exchange or depository involvement). You must proactively declare the capital gains — non-declaration risks scrutiny if the buyer declares the purchase.
Angel tax / share premium received by startup: If your company received share capital at premium, AIS won't show it — but CBDT has linked company-level SFT data to director/promoter PANs in some cases. Ensure your company's ITR is filed and matches investor declarations.
For CFOs and Finance Heads
GST turnover (SFT-018): AIS shows your GST turnover. This is compared to business income declared in the company ITR. Mismatch between GSTN turnover and IT return income is a common scrutiny trigger. Reconcile with a turnover reconciliation statement (Form GSTR-9 vs income tax turnover).
TDS deducted vs 26AS vs AIS: For companies paying rent, professional fees, and contractor charges — ensure all TDS returns (24Q, 26Q) are filed with correct PAN of deductees. Errors in TDS returns create AIS anomalies for the recipient.
Employee ESOP perquisites: File the perquisite value accurately in Form 24Q and Form 16. If the perquisite is underreported in Form 16 but the employee's demat statement shows the full share acquisition, the AIS will flag a mismatch.
AIS Reconciliation Checklist — Before Filing ITR
Download full AIS PDF from portal (Services → AIS)
Download TIS to see what the department is using as pre-fill for your ITR
Review each SFT category — identify purchases that are reported as income
Cross-check salary (SFT-014) with your Form 16 — verify gross salary amount matches
Cross-check interest income (SFT-011) with bank interest certificates from all banks
For mutual funds: download CAMS + KFintech capital gains statement; reconcile with AIS "Securities" section
For property transactions: verify sale consideration vs stamp duty value; note if Section 50C applies
For NRI income: mark FCNR interest as "Exempt income" in AIS feedback
Submit feedback on all incorrect, duplicate, or non-taxable entries
Wait 2–3 days after feedback for TIS to refresh before filing ITR
Form 26AS shows TDS deducted, TCS collected, and tax payments against your PAN. The AIS is much broader — it includes all financial transactions reported by 37 categories of filers including banks (interest, deposits), mutual fund RTAs (purchases, redemptions), property registrars, brokers, GST authorities, and foreign remittance banks. AIS is the primary pre-fill source for the ITR portal under the new Act framework.
File AIS feedback before submitting your ITR. When you submit feedback, the Taxpayer Information Summary (TIS) is updated, and the ITR pre-fill refreshes to reflect the corrected data. Filing your ITR first and then correcting AIS means you may have filed with incorrect income figures — requiring a revised ITR.
AIS often shows the stamp duty value (circle rate) reported by the property registrar, not your actual sale consideration. Also, AIS may show only partial data if the registrar reported just one portion of the transaction. Use AIS feedback ("Amount not fully correct") and provide the actual sale consideration from your sale deed. Note the correct amount in the feedback comments and ensure your ITR capital gains computation uses the higher of actual consideration or stamp duty value.
The ₹24 lakh likely includes both SIP purchases and redemptions — RTAs report all transactions. Purchases are not income. Use feedback category "Transaction relates to purchase / not income" for all SIP/purchase entries. Only redemptions create taxable capital gains. Download your consolidated capital gains statement from CAMS or KFintech to get precise redemption-wise gain data to report in your ITR.
AIS feedback typically reflects in TIS within 24–72 hours for simple entries. For complex feedback requiring system-side reconciliation (e.g., large property transactions), it may take 5–7 days. Wait for the TIS to update and cross-verify before filing your ITR. Do not file immediately after submitting feedback — give the system 2–3 days minimum.