AIS and TIS: How to Reconcile Before Filing Your Income Tax Return

Every year, many taxpayers receive notices from the Income Tax Department because the income reported in their Income Tax Return (ITR) does not match the information available with the department. To reduce such mismatches, the Income Tax Department introduced the Annual Information Statement (AIS) and Taxpayer Information Summary (TIS).

Before filing your ITR, it is important to review and reconcile both AIS and TIS to ensure accurate reporting of income and taxes. This simple exercise can save taxpayers from future notices, scrutiny, and unnecessary litigation.

What is AIS?

The Annual Information Statement (AIS) is a comprehensive statement that contains details of financial transactions reported against your PAN during the financial year.

AIS generally includes:

• Salary income
• Interest from savings accounts and fixed deposits
• Dividend income
• Purchase and sale of securities
• Mutual fund transactions
• Rent received
• Foreign remittances
• TDS and TCS details
• GST turnover information in certain cases
• High-value financial transactions reported by banks and other institutions

AIS provides detailed transaction-level information and allows taxpayers to submit feedback if any information appears incorrect.

What is TIS?

The Taxpayer Information Summary (TIS) is a summarized version of AIS.

It provides:

• Category-wise income details
• Aggregated values after considering taxpayer feedback
• Tax deduction and collection details
• Information useful for pre-filling ITR forms

While AIS contains detailed transactions, TIS presents the consolidated figures that are generally considered for return filing purposes.

Why Reconciliation is Important

Many taxpayers assume that AIS and TIS are always accurate. However, discrepancies can arise due to:

• Incorrect reporting by banks or financial institutions
• Duplicate reporting of transactions
• Transactions belonging to another person
• Timing differences between reporting and accounting
• Data entry errors by reporting entities

If the income reported in the ITR is lower than the income appearing in AIS/TIS without proper justification, the taxpayer may receive an automated notice from the Income Tax Department.

Step-by-Step Reconciliation Process

1. Download AIS and TIS

Log in to the Income Tax Portal and access the AIS section.

Download:

• AIS PDF
• AIS JSON (if required)
• TIS Summary

Review all categories carefully.

2. Match TDS with Form 26AS

Verify:

• Employer TDS
• TDS on professional receipts
• TDS on interest income
• TDS on rent
• TDS on commission or brokerage

Ensure all TDS credits appearing in Form 26AS are reflected correctly in AIS and TIS.

3. Verify Interest Income

This is one of the most commonly missed items.

Check:

• Savings account interest
• Fixed deposit interest
• Recurring deposit interest
• Corporate deposit interest

Match AIS figures with bank certificates and account statements.

Even if tax has not been deducted, the interest may still be taxable and should be disclosed appropriately.

4. Review Capital Gain Transactions

Compare AIS data with:

• Broker statements
• Demat statements
• Capital gain reports

AIS may show gross sale values, whereas the ITR requires computation of actual capital gains after considering acquisition cost and eligible deductions.

Do not directly report AIS sale value as taxable income.

5. Cross-Check Dividend Income

Verify dividend income reported by:

• Listed companies
• Mutual funds
• Investment platforms

Many taxpayers miss small dividend amounts, leading to income mismatches.

6. Verify Business and Professional Receipts

For business owners and professionals:

• Compare turnover reported in books with AIS information.
• Match TDS entries with revenue recorded in accounts.
• Reconcile GST turnover with books wherever applicable.

Differences should be properly documented and explained.

7. Check Foreign Remittances and High-Value Transactions

AIS may contain information regarding:

• Foreign travel expenses
• Foreign remittances
• Property transactions
• Large cash deposits
• Credit card payments

Ensure the source of funds is properly accounted for and disclosed wherever required.

8. Submit Feedback for Incorrect Entries

If any information is incorrect, AIS allows taxpayers to submit feedback such as:

• Information is not fully correct
• Information relates to another PAN
• Duplicate information
• Information is denied

Providing feedback helps improve the accuracy of TIS and departmental records.

Common Mistakes Taxpayers Make

• Ignoring AIS before filing ITR
• Reporting only Form 16 income
• Missing interest income from multiple bank accounts
• Not reporting dividend income
• Reporting gross sale value instead of capital gains
• Claiming TDS without corresponding income
• Failing to review high-value transaction reporting

Practical Tip for Tax Professionals

Before finalizing any return, prepare a simple reconciliation sheet containing:

This exercise helps identify discrepancies early and reduces the chances of future notices.

Conclusion

AIS and TIS have become important tools in the Income Tax Department's data-driven compliance framework. Taxpayers should not treat them as mere informational statements. A thorough reconciliation of AIS, TIS, Form 26AS, and financial records before filing the ITR can significantly reduce compliance risks and ensure accurate tax reporting.

A few minutes spent on reconciliation today can prevent lengthy explanations and notices tomorrow. ITR Filing