In the age of increasing digital compliance and real-time data monitoring by tax authorities, AIS (Annual Information Statement) and TIS (Taxpayer Information Summary) have become pivotal in the income tax filing process in India. While these tools aim to simplify tax compliance and improve transparency, they often lead to confusion and complications when there's a "mismatch" in reported data.

In this blog post, we’ll break down what AIS and TIS are, common reasons for mismatches, their implications, and what you can do to fix or avoid them. Stick around till the end for valuable resources and support links!

🧾 What is AIS & TIS?

AIS (Annual Information Statement): A detailed statement issued by the Income Tax Department that contains information related to your financial transactions from various sources like banks, mutual funds, stock exchanges, employers, and more.

TIS (Taxpayer Information Summary): A simplified summary version of AIS, showing pre-filled details and aggregated values used to calculate your total income for tax filing.

❗️What Does “Mismatch in AIS/TIS” Mean?

A mismatch occurs when the data shown in your AIS/TIS doesn’t align with:

• The data in your Income Tax Return (ITR),

• Actual transaction values from banks, brokers, etc.,

• Or the Form 26AS (which was earlier the primary data source).

This could mean under-reporting, over-reporting, or even reporting of incorrect income — and the consequences can be serious, including tax notices, reassessments, interest, and penalties.

⚠️ Top Reasons for AIS/TIS Mismatch

Here are the most common triggers of mismatches:

1. Incorrect or Duplicate Reporting by Third Parties

Banks, employers, mutual funds, etc., may wrongly report amounts or duplicate entries.

Example: A dividend you received is reported twice—once by the company and once by your Demat provider.

2. Timing Differences

Certain incomes may appear in AIS in a different financial year than when they were actually earned or declared.

3. Failure to Include Certain Transactions in ITR

Taxpayers often forget to report:

• Savings account interest

• Small dividend receipts

• Capital gains on shares

• Foreign remittances

• Crypto transactions (especially post-2022 updates)

4. Mismatched PAN or Demographic Details

If your PAN is linked to another account or entity by mistake, someone else's income or TDS could be reflected in your AIS.

5. TDS Deducted But Not Claimed

Many taxpayers miss claiming TDS that has already been deducted and reported in AIS.

🔍 How to Check for AIS/TIS Mismatch

1. Log in to the Income Tax e-filing portal and Go to "Services" → "AIS"

2. Download AIS and TIS reports

3. Match them against:

   • Your Form 26AS

   • Bank statements

   • Brokerage statements

   • Your own ITR draft
     

🛠️ What To Do If There Is a Mismatch

✅ Step 1: Submit Feedback in AIS Portal

If any entry is incorrect:

• Click “Provide Feedback”

• Choose correct option like “Information is not fully correct”, “Duplicate”, or “Relates to another PAN”

✅ Step 2: Wait for AIS to Update

The portal will revise the AIS based on your feedback (if accepted), usually within a few weeks.

✅ Step 3: File ITR with Correct Data

Use actual, correct income details even if AIS shows incorrect entries (but explain clearly in the tax return filing or through Form 10-IEA if needed).

✅ Step 4: Keep Proofs Ready

Maintain transaction records, interest certificates, Demat statements, etc., for defense in case of future scrutiny.

🚨 Risks of Ignoring AIS/TIS Mismatches

• Tax notices under Section 139(9), 143(1), or 148

• Reassessment or audit proceedings

• Penal interest under Sections 234B/C

• Flat penalties under Section 270A (for under-reporting)

Remember: Just because the mismatch was not your fault doesn’t mean you won’t be liable if you don’t correct it!

📌 Pro Tips to Avoid AIS/TIS Mismatches

• Always reconcile AIS, TIS, and Form 26AS before filing

• Avoid last-minute filing; give yourself time to check for errors

• Use professional help for complex income (e.g., capital gains, business income)

• Regularly check AIS throughout the year, not just at filing time

🎯 In Conclusion

Mismatch in AIS/TIS is one of the most overlooked yet dangerous pitfalls in tax filing today. As the Income Tax Department leans more on automated data verification, even honest taxpayers can fall into trouble due to overlooked discrepancies.

Being proactive, vigilant, and informed is key.

💬 Need Help with AIS/TIS or Income Tax Filing?

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Stay compliant, stay stress-free — because tax mistakes cost more than just money.