Mismatch in AIS and Form 26AS: As the tax-filing season is inching closer to the due date for most assessees, several taxpayers on social media have been complaining to the Income Tax Department about the mismatch in their respective Annual Information Statement (AIS) and Form 26AS.

FE PF Desk got in touch with some tax experts to find out what the taxpayers should do if they discover a data mismatch in these documents. Read on to know what they suggest. But first, let’s understand what purpose is served by Form 26AS and AIS.

Form 26AS provides the details of property purchases, high-value investments and other TDS/TCS-related transactions carried out during the financial year.

AIS, apart from certain specified details mentioned in Form 26AS, contains details of savings account interest, dividend, rent received, purchase and sale transactions of securities/immovable properties, foreign remittances, etc.

Also Read: Income Tax Return processing AY 2023-24: When will you get refunds?

If you miss reporting some essential income received during the financial year while filing the ITR, there is a high chance you will receive a demand notice from the Income Tax Department. Other errors where you can receive notice could be mismatches in PAN or TAN details or missing TDS entries. Hence, it is important to refer to the annual information statement (AIS) and Form 26AS before filing the ITR, according to Abhishek Soni CEO and co-founder of Tax2win, a Fisdom company.

Dr Suresh Surana, Founder of RSM India, also says that every taxpayer, before filing his/her return, should take into consideration the details mentioned in the AIS and Form 26AS. However, in case of a mismatch, taxpayers have the option to provide online feedback regarding such mismatch on the e-filing website as follows:

  • Information is correct
  • Information is not taxable
  • Information is not fully correct
  • Information relates to other PAN/ Year
  • Information is duplicate/ included in other information.
  • Information is denied

What should you do to rectify the mismatch?

Taxpayers can take the following actions to rectify the mismatch in their AIS and Form 26AS.

Verify Mismatch

Soni suggests you should carefully review both Form 26AS and the AIS to identify the specific areas where the discrepancies exist. You should ensure that you have accurate and up-to-date information for comparison.

Also Read: Why senior citizens having only Fixed Deposit income should file ITR for AY 2023-24

Ask the Deductor to Rectify Errors

“In case of any mismatch as regards the information mentioned in Form 26AS, the taxpayer should highlight the same to the tax deductor and ask him to revise the TDS return for rectifying the error,” says Dr Surana.

“Reach out to the deductor with all the relevant details and documents. Ask them to rectify any errors on their part,” suggests Soni.

Keep Document Proofs

“In cases where there is a mismatch in either Form 26AS or AIS, it is recommendable that the taxpayer should maintain the necessary documents pertaining to the transactions such as bank statements, demat statements, etc,” says Dr Surana.

“Collect any relevant documents, such as bank statements, transaction receipts, or other evidence that can help support your claim regarding the correct information. These documents will be useful when discussing the discrepancies with the authorities,” suggests Soni.

Contact Income Tax Department

According to Soni, the one who issues these forms will be the best source to seek guidance. You should explain the specific differences you have identified and provide any supporting documentation to substantiate your claims.

Also Read: Income Tax Return (ITR) Due Dates for All Assessees AY 2023-24: Full List

Raise a Complaint

In case the discrepancies are not resolved or adequately addressed by the deductor or income tax department even after regular communication, you may need to escalate the issue by filing a formal complaint or grievance. This can be done through the e-filing portal or by submitting a written complaint. You should also not forget to take follow up on these complaints, experts say.

Seek Professional Assistance

Lastly, if the discrepancies persist or if the resolution process becomes complex, it may be beneficial to seek the help of a qualified tax expert for an efficient resolution of the matter.