Content authored by practitioners with experience at Amazon India, Intuit QuickBooks, and the Tata Group. Meet the team →
The Annual Information Statement replaced Form 26AS as the primary reconciliation reference for Section 143(1) processing in November 2021. AIS aggregates 46 categories — SFT reports, dividends, mutual fund redemptions, foreign remittances, GST turnover — far beyond 26AS. ITRs that conflict with AIS trigger automatic Section 143(1)(a) intimations even when the ITR figures are correct.
Reconcile AIS against the books first, then cross-check 26AS TDS entries against AIS Part B. For AIS entries that disagree with the books, submit Feedback (Income is not mine, already included, partially correct, or duplicate) through the e-filing portal. Wait 15 days for source response and file ITR using TIS processed values rather than raw AIS values.
Category-wise AIS import with 46 buckets. Feedback submission workflow with response ageing. Cross-check routine matching 26AS TDS entries to AIS Part B.
ITR filed against TIS processed values, documented feedback trail for any disputed AIS entry, and no Section 143(1)(a) intimations for categories the taxpayer can defend with the books and feedback log.
The Annual Information Statement was launched on the income tax e-filing portal on November 1, 2021, replacing Form 26AS as the primary tax information document. Four years later, a significant share of enterprise finance teams still treats Form 26AS as the reconciliation reference for ITR preparation. The practical consequence is that AIS-driven Section 143(1) intimations arrive after filing — for income categories the finance team did not know AIS was tracking.
AIS TIS reconciliation before filing ITR is not a parallel exercise to Form 26AS matching. It is the current primary reconciliation requirement for any business that receives interest income, dividends, has equity transactions, or operates across multiple payment instruments. This guide explains the AIS/TIS system, what finance teams must review, and the step-by-step reconciliation process.
What Is AIS and How It Differs from Form 26AS
Form 26AS is a tax credit statement showing TDS deducted by deductors, TCS collected by sellers, and advance tax payments. It was the primary reconciliation document until 2021.
AIS is structurally different. It aggregates information from 46 categories of financial data reported by third parties — including banks (Specified Financial Transaction reports), stock exchanges, mutual fund registrars, payment system operators, and the GST portal. AIS contains everything Form 26AS contains, plus a much wider set of income and asset information.
| Aspect | Form 26AS | AIS |
|---|---|---|
| Coverage | TDS, TCS, advance tax, refunds | 46 categories including SFT, dividends, securities, MF, foreign remittances, GST turnover |
| Data source | Deductors (TAN filers), tax payments | Deductors + financial institutions + exchanges + MCA + GSTN |
| Update frequency | As TDS is deposited | Continuous — updated as reporting entities file |
| ITR prefill source | Partial (TDS entries) | Primary source for ITR prefill via TIS |
| AIS feedback mechanism | Not available | Available — taxpayer can dispute entries |
| Used for 143(1) processing | Supplementary | Primary |
Form 26AS is now a supplementary document. The Income Tax India e-filing portal hosts both, but AIS is now the document that drives automated ITR processing.
What Is TIS and Why It Matters for ITR Pre-Fill
TIS — Taxpayer Information Summary — is the companion to AIS. Where AIS shows the raw reported data (which may include duplicate entries from multiple reporting sources), TIS shows the processed, deduplicated values after the tax department’s reconciliation logic has been applied.
For each income category, TIS shows three values:
- Reported value: The raw sum from AIS (may include duplicates)
- Processed value: The deduplicated value after taxpayer feedback and system reconciliation
- Derived value: The value used for ITR prefill
ITR prefill draws from TIS processed/derived values, not from raw AIS. This means submitting AIS feedback — to correct or contest entries — changes the TIS processed value, which changes what the ITR prefill shows. Finance teams should download TIS after completing the AIS review and feedback cycle, not before.
The 46 Information Categories in AIS: What Finance Teams Must Review
Not all 46 AIS categories require equal attention. For corporate and business taxpayers, the high-priority categories are:
| AIS Category | Data source | Why it requires review |
|---|---|---|
| TDS on salary | Employer (TAN filer) | Cross-check with Form 16 |
| TDS on other income (rent, fees, interest) | Deductors | Cross-check with Form 16A / books |
| TCS | Sellers | Cross-check with purchase records |
| SFT — Bank interest (savings + FD) | Banks | Compare with interest income in P&L |
| SFT — Dividend income | Registrar/company | Compare with dividend receipts |
| SFT — Securities transactions | Stock exchanges (BSE/NSE) | Compare with investment records |
| SFT — Mutual fund transactions | Registrar/CAMS/KFintech | Compare with MF redemption records |
| Advance tax payments | OLTAS (challan data) | Compare with Challan 280 records |
| Self-assessment tax payments | OLTAS | Compare with tax payment records |
| Income tax refunds received | CPC | Compare with refund receipts |
| GST turnover | GSTN | Compare with GSTR-1 / audited turnover |
| Foreign remittances (Form 15CC) | Banks | Relevant for companies receiving foreign payments |
The GST turnover field in AIS is a frequently overlooked mismatch source. AIS now receives GST turnover data from the GSTN system. If a company’s declared income in the ITR is significantly lower than its GST turnover (for example, because of different accounting periods or exempt supplies), the centralised processing system will flag it as an income underreporting risk even if the ITR is accurate.
Step-by-Step AIS Reconciliation Process Before Filing ITR
Step 1: Download AIS from the E-Filing Portal
Log into www.incometax.gov.in and navigate to the AIS section. Download the full AIS as a PDF and as a JSON file. The JSON version enables data manipulation. Download for the financial year being assessed (AIS is organised by assessment year).
Step 2: Map AIS TDS Entries Against Form 26AS
For TDS entries in AIS Part B (TDS on non-salary income), cross-check each entry against the corresponding Form 26AS Part A1 entry. Identify:
- Entries in AIS but missing from 26AS (deductor filed through the new AIS pathway but not via legacy challan mapping)
- Entries in 26AS but not appearing in AIS (unlikely but check for older entries)
- Amount differences between AIS and 26AS for the same TAN / section / quarter
Step 3: Check SFT Entries Against Books of Account
Download the SFT section of AIS. For each SFT category (interest, dividends, securities, mutual funds), compare the AIS reported figure against the corresponding income in the books. Common sources of genuine mismatch:
- Banks report interest on the accrual basis; the company may have booked on receipt basis
- Dividend income may be reported by the registrar net of withholding tax; the company may have different gross/net treatment
- Securities transactions may include multiple legs of a trade where the company’s book records only the net position
Step 4: Submit Feedback on Incorrect or Duplicate Entries
For any AIS entry that is incorrect, duplicate, or does not belong to the taxpayer, submit Feedback in the AIS portal. Select the appropriate feedback type from the options provided. After submission, the information source is notified. The feedback trail is important documentation if a 143(1) notice issues later.
Step 5: Download TIS After Feedback Cycle
Once the feedback submission and processing cycle is complete (allow 15 to 20 days if information sources need to respond), download the updated TIS. Use the TIS processed values, not raw AIS values, for ITR preparation. The ITR prefill on the e-filing portal will also update once TIS processed values change.
Step 6: Reconcile GST Turnover in AIS Against Declared Turnover
Extract the GST turnover figure from AIS and compare with the company’s declared turnover for the same year. Differences can arise from GSTN reporting timelines, reverse charge transactions, and exempt supply classification. Document any variance with a clear explanation before filing.
How to Submit Feedback on AIS Errors
The Feedback mechanism in AIS allows taxpayers to dispute reported figures directly in the portal. The process:
- Open the specific AIS entry you want to dispute
- Click “Feedback” against that entry
- Select feedback type: Correct / Income not received / Income already included in ITR / Income is not mine / Duplicate entry / Other
- Add a note explaining the basis for feedback
- The information source (bank, deductor, exchange) is notified automatically
- Source has 15 days to confirm or deny; if no response, feedback is deemed accepted
- TIS processed value updates after acceptance
Submitting feedback does not delay ITR filing. File with the TIS processed values as they stand at filing time. If feedback is pending, note the discrepancy in the ITR’s Schedule of Income or in a covering note.
AIS vs TIS vs Form 26AS: Which to Use for Each Data Type
| Data type | Use for reconciliation | Use for ITR prefill |
|---|---|---|
| TDS deducted (non-salary) | AIS Part B AND Form 26AS Part A1 | TIS processed value |
| TDS on salary | Form 16 (primary), AIS Part A | TIS processed value |
| Bank interest (SFT) | AIS SFT section | TIS processed value |
| Advance tax payments | Challan 280 records + AIS Part D | TIS processed value |
| Dividend income | Dividend warrants + AIS SFT | TIS processed value |
| GST turnover | AIS + GSTR-1/9 reconciliation | Document variance only |
| Securities transactions | Contract notes + AIS SFT | TIS processed value |
Common AIS Mismatches and How to Resolve Them
TDS entry in 26AS missing from AIS: Possible if the deductor is filing via legacy NSDL/TRACES pathway but the AIS system has not yet integrated the entry. Check again closer to the ITR deadline — AIS is updated on a rolling basis. If still missing at filing, claim the TDS in ITR based on 26AS and document the discrepancy.
AIS shows higher interest income than books: Typically because banks report on accrual basis under SFT, while the company books on receipt basis. Reconcile by period; the difference is usually timing. Submit feedback if the bank has included interest from a different account inadvertently.
Duplicate TDS entries in AIS: AIS can show the same TDS amount twice if the deductor filed both the original and a revised return. The TIS processed value should deduplicate these — but verify by comparing TIS to AIS before filing.
GST turnover in AIS higher than ITR income: Possible if the company had exempt supplies, exports under LUT (which appear in GSTN but are not taxable income), or if GSTN captures gross receipts while ITR captures net revenue. Document the reconciliation clearly.
How Reconciliation Systems Can Automate AIS Matching
The AIS reconciliation workflow is structurally similar to TDS ledger reconciliation: a set of reported values from an external source (AIS) must be matched against internal records (books, ledgers, bank statements) with discrepancies classified and resolved.
For organisations with high volumes of TDS deductors, SFT reporting categories, or cross-border transactions, the AIS matching exercise can run to hundreds or thousands of line items per year. The same matching infrastructure used for Form 26AS reconciliation — where deductor TAN, section code, quarter, and amount are the matching keys — extends to AIS with additional keys for SFT category and reporting entity identifier.
TDS reconciliation software that is structured for Form 26AS matching can be configured to ingest AIS JSON exports and match entries against the TDS receivable ledger, flagging entries present in AIS but not in books (potential missed income bookings) and entries in books but not in AIS (potential TDS credit at risk). The exception output — entries that cannot be auto-matched — goes to a review queue with enough context to resolve quickly. For companies managing pre-ITR reconciliation across multiple group entities, reconciliation software India that handles multi-entity AIS downloads and cross-entity matching reduces the time from AIS download to ITR-ready reconciliation from weeks to days.