What is AIS reconciliation in ITR filing?

AIS reconciliation is the pre-submit check where you open your Annual Information Statement (AIS) on the income-tax e-filing portal and match every line — TDS credits, bank interest, mutual-fund redemptions, dividends, property transactions, foreign remittances — against your own records and Form 26AS. Any line in AIS that you do not include in the ITR, or that does not match what you report, is a risk flag for a Section 143(1)(a) intimation or a Section 139(9) defective-return notice. Doing it takes 20-40 minutes and saves weeks of notice-handling later.

Is AIS the same as Form 26AS?

No. Form 26AS is the older tax-credit statement: TDS + TCS + advance tax + self-assessment tax + refunds + high-value SFT entries, sourced from TIN-NSDL via deductor quarterly returns. AIS is broader: it carries everything in 26AS plus bank interest below the TDS threshold, mutual-fund + equity transactions from depositories, rent receipts, LRS remittances, property sales, and demat activity. Reconcile against both: 26AS for tax-credit integrity and AIS for income completeness.

What happens if AIS shows income I did not report in my ITR?

If AIS lists a line — say ₹42,000 of bank interest or a ₹1.8 L mutual-fund redemption — and your ITR omits it, CPC-Bengaluru usually issues a Section 143(1)(a) intimation within a few months, adding the missing income and recomputing tax + interest. You then get 30 days to respond. You can either accept the adjustment and pay, or file a rectification under 154 with supporting proof. Best avoided entirely by cross-checking AIS before you hit Submit.

How do I correct a wrong AIS entry?

Open AIS on the e-filing portal, click the specific line, and submit "AIS feedback" with the correct value and a reason (duplicate, wrong amount, wrong PAN, already reported under different head, etc.). The data-source gets notified and AIS usually updates in 7-30 days. If the source does not confirm, the original value stays in AIS but your feedback is on record — file the ITR with your corrected figure and attach the feedback acknowledgment if queried later.

Can I file ITR-1 if I have capital gains from mutual funds?

No. ITR-1 (Sahaj) has no Schedule CG, no Schedule VDA, no Schedule FA. Even ₹1 of realised short-term or long-term capital gain — including from equity mutual-fund SIP redemptions, ETF sales, direct stock — mandates ITR-2. Filing ITR-1 with MF capital gains is flagged as a defective return under Section 139(9); you get 15 days to fix it before the return is treated as never filed.

Which ITR form for salaried + mutual-fund investor?

Salary + SIPs with no redemptions in the year = ITR-1 (assuming total income ≤ ₹50 L, one house property, no foreign assets). The moment you redeem even one SIP unit or receive a dividend reported under the "dividend income" schedule, it is ITR-2. Dividends under ₹10,000 still need Schedule OS in ITR-2; there is no exemption like Section 80L used to offer.

Do I need to file ITR if TDS has been deducted?

Usually yes. Employer / bank TDS is a tax credit, not a final tax. If your total income crosses the basic exemption (₹3 L new regime / ₹2.5 L old regime for individuals below 60), you must file — refund claims are only processed against a filed return. You also need a filed return to claim capital-loss carryforward, book LTA/HRA proofs against Form 16, or apply for visas, loans, and credit cards.

What is the last date for AIS reconciliation before ITR filing?

There is no separate AIS deadline — it is part of ITR filing. For FY 2025-26 / AY 2026-27, non-audit individual returns are due 31 July 2026. Pull AIS at least a week before you intend to file so you have time to submit feedback on any wrong entries and see the correction reflect. Last-day filings that skip AIS reconciliation are the single biggest source of 143(1)(a) adjustment intimations.

Why does my AIS show higher salary than Form 16?

Three common reasons: (1) employer reported gross before Section 10 exemptions (HRA, LTA) while Form 16 Part B shows net of exemptions — the ITR asks for gross, so AIS usually lines up; (2) a prior-year salary arrear or bonus got booked this year in AIS but was reported to you in Form 16 of a different year; (3) a second employer during the year whose Form 16 you forgot. Pull Form 26AS Part A, list every deductor, and confirm each has a matching Form 16.

Can I still get a 139(9) notice if AIS matches my ITR?

Yes — 139(9) covers more than AIS mismatches. The other triggers: wrong ITR form for your income mix (ITR-1 with crypto or capital gains), filing without the required audit report when business turnover crosses ₹1 Cr, missing Schedule FA when 26AS shows an NRE/foreign account, or declaring zero income while claiming a large refund. Reconcile AIS, but also run the form-decision tree above before you submit.

ITR Filing India: Which Form + AIS / 26AS Reconciliation

Every year, the Income Tax Department sends lakhs of “defective return” notices under Section 139(9) because taxpayers pick the wrong ITR form. This post covers the decision: which form fits which income mix, and how to reconcile TDS credits in AIS + Form 26AS before hitting submit — the single biggest pre-submit check that saves rework.

The short answer

ITR-1 (Sahaj): salary + one-house property + interest. Limits: total income ≤ ₹50L, no capital gains, no crypto, no foreign asset, not a director / unlisted-share-holder.
ITR-2: salary + house property + capital gains + crypto + foreign assets + director / unlisted shares. No business income.
ITR-3: everything in ITR-2 + business / profession income (PGBP head).
ITR-4 (Sugam): presumptive business / profession under 44AD / 44ADA / 44AE. Use only if your business qualifies for presumptive taxation.

Decision tree — which ITR form?

Any business / profession income (not presumptive)? Yes → ITR-3.
Business under presumptive scheme (44AD / ADA / AE)? Yes → ITR-4 (Sugam).
Any capital gains / crypto / foreign asset / director or unlisted-share-holder status? Yes → ITR-2.
More than one house property? Yes → ITR-2.
Total income above ₹50 L? Yes → ITR-2 (even without capital gains).
Salary + 1 house + interest income only, under ₹50L? ITR-1 (Sahaj).

The “one crypto trade forces ITR-2” rule

Even a single VDA transaction during the year mandates ITR-2 or ITR-3. ITR-1 has no Schedule VDA. Filing ITR-1 with crypto is a defective return under Section 139(9); you’ll get 15 days to revise before the return is treated as non-existent. See our crypto tax post for the full VDA filing flow.

Same trap for any year where you sold property, mutual fund units realised as STCG/LTCG, or held foreign assets during the year (even if you didn’t sell).

AIS vs Form 26AS — two TDS-credit views

The IT Department offers two statements that overlap but aren’t identical:

Form 26AS

Classic tax-credit statement. Shows:

TDS deducted against your PAN by various deductors
Advance tax / self-assessment tax you’ve paid
Refunds received
Specified Financial Transactions (SFT) — high-value reporting

Source: TIN-NSDL; populated from quarterly TDS/TCS returns filed by deductors.

AIS (Annual Information Statement) + TIS

Introduced 2021. Richer than 26AS; includes:

All 26AS data
Interest from banks (even under TDS threshold)
Mutual fund / equity transactions from stock exchanges
Rent received (from tenants’ Form 26QC filings)
Foreign remittances (LRS via Section 206C(1G))
Property transactions (Section 194-IA, 194-IB)
Demat activity (equity buy/sell reports from depositories)

Source: multiple data aggregators under Rule 114E. Accessed via e-filing portal → Services → AIS.

TIS (Taxpayer Information Summary) is the simplified rollup. Start with TIS for high-level confirmation, drill into AIS for line-item detail.

Reconciliation checklist — do this before hitting Submit

Download 26AS from e-filing portal. Filter to relevant AY.
Download AIS from the same portal. Separate tab.
Cross-check every TDS credit. Salary TDS should match Form 16 Part A. Bank FD TDS should match the bank’s interest certificate. Any mismatch → flag in AIS feedback with the correct value.
Check for mystery income in AIS. AIS often shows income you forgot — a dormant savings account’s interest, a small dividend, a mutual fund redemption. Include all in the ITR.
Verify SFT entries. Cash deposits > ₹10L in savings accounts, credit card payments > ₹10L, MF purchases > ₹10L — flagged to the department. Make sure your ITR income can support these.
Foreign asset disclosure via Schedule FA — any offshore bank account, foreign equity (RSUs, ESOPs of non- Indian parent), crypto on foreign exchanges. Missing Schedule FA triggers Black Money Act penalties regardless of whether there’s tax to pay.
Form 26QB / 26QC reconciliation — if you bought property > ₹50L, you’ve deducted 1% TDS and filed 26QB. Confirm the seller got the credit.
Tax paid section — line up TDS + TCS + advance tax + SAT paid entries in ITR against the 26AS summary.

AIS reconciliation walk-through — the 7-step portal flow

This is the exact sequence to follow on incometax.gov.in the week you plan to file. Set aside 30–45 minutes for a typical salaried filer; 60–90 minutes if you have capital gains, crypto, or LRS activity.

Login → Services → Annual Information Statement. AIS opens in a new tab. Select AY 2026-27 from the top filter.
Start on the TIS (Taxpayer Information Summary) tile. This is the rollup — income under each head (salary, interest, dividend, capital gains, rent, foreign remittance). Confirm the totals match what you’ll put into the corresponding ITR schedule. Any surprise line here → drill into AIS for the source transactions.
Export AIS as PDF + JSON. The JSON is crucial — it’s machine-readable, so if you’re using filing software (ClearTax, Quicko, Tax2Win), you can import it directly and skip manual entry. Even if you file on the portal, keep the PDF for future reference.
Cross-check TDS Part A (salary). Open Form 16 Part A, match gross salary + TDS + employer PAN/TAN against AIS + 26AS. Three values, three statements — all three must agree. Mismatch → submit AIS feedback with the corrected amount and keep Form 16 as backup.
Cross-check TDS Part B (non-salary). Bank FD interest (Section 194A), contract payments (194J / 194C), rent (194-IB), sale of property (194-IA). For each, the deductor’s quarterly TDS return populates AIS; if you have the interest certificate or Form 16A, numbers should line up to the rupee.
Check Securities & Mutual Fund Transactions. AIS lists every buy/sell reported by depositories (NSDL / CDSL) and AMCs. Use it to reconcile against your broker’s Capital Gains Report and the CAS (Consolidated Account Statement). If AIS shows a redemption you don’t have a gain statement for, grab the CAS from camsonline.com or kfintech.com.
Check Foreign Remittance (LRS) entries. AIS shows all LRS outward remittances your bank reported under Section 206C(1G). Match against Form 15CA / 15CB if you filed them, and confirm the TCS credit is claimed under Schedule TCS of the ITR. See our LRS TCS guide for the exact ITR-schedule mapping.

The three-way tie-out table

For every income head, there are at most three reporting surfaces. A filing is “clean” only when all three agree:

Three-way tie-out for each income head: your record, 26AS/AIS statement, and deductor form
Income head	Your record	26AS / AIS	Deductor form
Salary	Payslips + Form 16 Part B (Net)	AIS salary row	Form 16 Part A (gross)
FD interest	Bank interest certificate	AIS “Interest from deposits”	Form 16A per bank
Equity/MF sale	Broker capital-gains report	AIS Securities & MF txns	CAS (CAMS / KFin)
Dividend	Broker ledger + AMC statements	AIS Dividend income	Form 16A (if TDS)
Property sale	Sale deed + buyer 26QB	AIS Property txn row	Buyer-issued Form 16B
Crypto (VDA)	Exchange P&L report	AIS VDA under 194S	Exchange-issued Form 26QE
LRS remittance	Bank A2 form + remittance receipt	AIS LRS / 206C(1G)	Bank Form 27D (TCS cert)

AIS feedback — what each option means

Information is correct: acknowledge and move on. No action needed in ITR beyond reporting this income.
Information is duplicate / included in other information: e.g., the same bank interest is reported by both the branch and the head office. Pick one; submit feedback on the duplicate.
Information is not fully correct: partial match. Enter the correct amount in the feedback form.
Information relates to other PAN / year: someone else’s PAN, or this-year entry belongs to last year. Use sparingly — the IT Department flags high-frequency users of this option for manual review.
Information is denied: nuclear option. Only when you’re certain the transaction never happened. Expect the data source to push back; keep evidence ready.

Common defective-return triggers (Section 139(9))

Wrong ITR form (ITR-1 with crypto / capital gains / foreign assets / >₹50L income).
Mismatch in tax credit — claimed TDS of ₹X, 26AS shows ₹Y.
Zero income declared but return filed — auto- flagged.
Missing Schedule FA with foreign asset reported elsewhere (e.g., NRE account interest in 26AS).
Business income without mandatory audit disclosure (turnover > ₹1 Cr in business).

When a 139(9) notice arrives: login to e-filing portal, respond within 15 days. Typically upload a revised return with corrected form / schedules. Missing the 15-day window → return treated as never filed.

Deadlines FY 2025-26 / AY 2026-27

31 July 2026 — individual / HUF non-audit cases.
31 October 2026 — audit cases (business turnover > ₹1 Cr, profession > ₹75L).
30 November 2026 — transfer-pricing cases (international related-party transactions).
31 December 2026 — belated return (₹5K late fee if income > ₹5L, ₹1K otherwise). Can’t claim new-regime switch on belated.
31 December 2026 — revised return for any AY 2026-27 return filed earlier.

Regime choice on the return

From FY 2023-24 onwards, new regime is default. To stay on the old regime:

Salaried: indicate on the ITR form itself. Can switch every year.
Non-salaried with business income: file Form 10-IEA before the ITR due date. Once switched out of old regime, limited ability to switch back.

See our regime comparison for the decision logic. If you’re borderline, run both in the Income Tax Calculator before committing.

Documents to gather before you start

PAN, Aadhaar, bank account details (for refund direct credit)
Form 16 (salary TDS) from every employer you worked with
Form 16A (TDS on non-salary income, from banks / tenants)
Form 26AS + AIS downloads
Interest certificates from every bank where you have a savings account or FD
Rent receipts + landlord PAN (for HRA exemption)
80C / 80D / 80CCD investment proofs
Demat / CAS (Consolidated Account Statement) for equity + MF transactions
Crypto exchange statements + ₹ TDS summary u/s 194S
Property sale deeds (if sold), improvement cost bills, Section 54 / 54EC investment proofs

When to use a CA vs file yourself

Salary-only + 80C: file yourself. The portal’s pre-fill covers 90% of the work.
Salary + 1 house + some MF: file yourself if comfortable with schedules; otherwise a ₹1,500-₹3,000 CA fee is cheap insurance.
Property sale + Section 54 claim: use a CA. The exemption rules are unforgiving; a mis-claim costs lakhs.
Business income / freelancer: use a CA, at least for the first year. Consolidated GSTR-9 + ITR-3 + books of accounts gets gnarly.
Crypto + foreign assets: use a CA who handles these specifically. Most CAs haven’t caught up on VDA rules.

Refund timeline

Post-e-verification, refunds typically land in 15-45 days for ITR-1 / ITR-4. ITR-2 / ITR-3 can take 2-6 months because of manual scrutiny on capital gains and business schedules. Track via e-filing portal → View Returns / Processing Status.

Penalties for missing filing

Late fee (Section 234F): ₹5,000 if total income > ₹5L; ₹1,000 otherwise. Auto-applied in belated returns.
Interest u/s 234A: 1% per month on unpaid tax from due date to filing date.
Interest u/s 234B / 234C: 1% per month for short payment / deferred payment of advance tax.
Prosecution (rare but real): willful evasion > ₹25L can attract 6 months to 7 years imprisonment. Consult a tax professional immediately if there’s exposure.

Run your numbers pre-filing

Before you start the portal flow, run your whole-year numbers through the Income Tax Calculator to estimate total liability, the Capital Gains Calculator for each realised equity / MF / property transaction, the Crypto Tax Calculator for VDA gains, and the Salary Calculator for HRA exemption math. Any material mismatch with what the employer computed in Form 16 = investigate before filing.

Sources

Income Tax Act Sections 139, 139(9), 234A/B/C/F, 44AD/ADA/AE.
CBDT ITR form notifications (Notification 19/2024 for AY 2024-25, subsequent annual notifications).
Rule 114E CBDT — SFT reporting thresholds.
Income Tax Department (incometaxindia.gov.in) — e-filing portal, AIS, TIS, 26AS.
CBDT Circular 4/2022 — employer TDS guidance.