Aug 8, 2025
Introduction Mismatch notices arising from discrepancies between Form 26AS and AIS are becoming increasingly common. The Income Tax Department expects taxpayers to reconcile and respond to such differences promptly. Chartered Accountants (CAs) must know how to approach these notices methodically to protect clients and avoid unnecessary scrutiny.
Understanding the Difference Between Form 26AS and AIS
Form 26AS: A consolidated tax statement that reflects TDS, TCS, advance tax, self-assessment tax, refunds, and high-value transactions.
AIS: A more detailed and recent statement introduced by the Income Tax Department. It includes additional information such as interest income, mutual fund transactions, foreign remittances, dividend income, etc.
Common Mismatch Scenarios
Interest income shown in AIS but not reported in ITR.
Mutual fund redemptions/investments shown only in AIS.
TDS reflected in AIS but not in Form 26AS.
Duplicates or errors in AIS from multiple sources.
Step-by-Step Process to Handle Mismatch Notices
Access the Notice
Log in to the Income Tax portal > e-Proceedings > Select the relevant notice.Download AIS and Form 26AS
Ensure both documents are downloaded for the correct PAN and financial year.Compare AIS, 26AS, and Filed ITR
Use spreadsheet tools or reconciliation modules in your compliance software to align all sources.Identify the Nature of the Mismatch
Categorize the differences: omitted income, wrong figures, duplicates, or system errors.Revise ITR If Needed
If an error is genuine and income was omitted, revise the ITR under Section 139(5).Submit Feedback on AIS
Go to AIS > Select Feedback option against the relevant entry > Choose correct category (e.g., "Information is incorrect" or "Not taxable").Respond to the Notice
Upload a detailed explanation with supporting documents such as bank statements, Form 16A, interest certificates, etc.Track the Outcome
Check the status of the notice periodically. Ensure that the CPC or AO accepts the explanation or that revised ITR is processed.
Preventive Measures for Future
Automate interest and dividend reporting.
Educate clients on real-time reporting via AIS.
Conduct a mid-year AIS reconciliation.
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