AIS vs 26AS Reconciliation: How Hyderabad Taxpayers Can Avoid ITR Mismatches (FY 2025-26)

Published on: 16 April 2026 at 8:26 PM IST

AIS vs 26AS reconciliation trips up thousands of Hyderabad taxpayers every filing season. The Annual Information Statement and Form 26AS both report your financial transactions to the Income Tax Department. They should match your ITR. When they do not, you get a defective return notice or a demand notice weeks later.

At Sunshine Accountancy & Co., we reconcile AIS and 26AS data for hundreds of salaried professionals in Hyderabad each year. This guide walks you through the differences, the common mismatches, and the exact steps to fix them before you file.

What Is Form 26AS and What Is AIS?

Form 26AS is the older tax credit statement. It shows TDS deducted by your employer, banks, and other deductors. It also shows advance tax and self-assessment tax payments. The Income Tax Department has maintained 26AS for over a decade.

The Annual Information Statement is the newer, more comprehensive document. AIS replaced the old Form 26AS as the primary source of financial data from FY 2021-22 onward. AIS pulls data from banks, mutual fund houses, stock brokers, property registrars, and even foreign remittance records.

Think of 26AS as a summary and AIS as the full detailed report. Both are available on the income tax e-filing portal at incometax.gov.in under the e-File menu.

Key Differences Between AIS and 26AS

The scope is the biggest difference. Form 26AS shows TDS and TCS credits, advance tax, refunds, and high-value transaction details under Section 285BA. AIS goes much further. It includes savings account interest, dividend income, mutual fund purchases and redemptions, share transactions, rent received, and foreign remittances.

The feedback mechanism also sets them apart. AIS allows you to submit feedback if a transaction is incorrect, duplicate, or belongs to someone else. Form 26AS does not offer this option. This feedback feature matters because the department uses AIS data to pre-fill your ITR.

The Taxpayer Information Summary is another important document. TIS is a processed version of AIS. It shows the derived value the department expects you to report. Always compare your ITR figures against TIS derived values, not just AIS reported values.

Common AIS vs 26AS Mismatches in Hyderabad

Savings account interest is the most frequent mismatch we see at our Hyderabad office. Banks report interest to AIS, but many taxpayers forget to add interest from multiple accounts. If you hold accounts at SBI, HDFC, and a cooperative bank, all three interest figures must appear in your ITR.

Dividend income creates the second most common mismatch. Companies report dividends paid to you in AIS. Since dividends became taxable in the hands of shareholders from FY 2020-21, every single dividend credit must appear in your return. Missing even a small dividend of a few hundred rupees can trigger a notice.

Mutual fund capital gains are tricky because AIS reports the sale value, not the gain. You must calculate the actual capital gain yourself using purchase price, holding period, and applicable indexation. Reporting the sale value as income is a costly mistake.

Property transactions sometimes show up in AIS with a different value than what you reported. The stamp duty value and the actual sale consideration may differ. Always use the higher of the two as required under Section 50C.

Step-by-Step AIS vs 26AS Reconciliation Process

Start by downloading both documents from the e-filing portal. Log in to incometax.gov.in, go to e-File, then Income Tax Returns, then View Form 26AS. For AIS, go to e-File, then View AIS. Download the PDF versions for easy comparison.

Create a simple spreadsheet with columns for source, transaction type, 26AS amount, AIS amount, AIS feedback status, and your reported amount. List every income source row by row. This spreadsheet becomes your reconciliation working paper.

Compare TDS entries first. Match each TDS entry in 26AS with the corresponding salary slip or Form 16. Verify that the TAN of the deductor matches. If your employer changed payroll providers mid-year, you may see two TAN entries for the same employer.

Next, compare interest and dividend entries in AIS against your bank statements and demat account statements. Add up all sources. The total must match what you report under Income from Other Sources in your ITR.

Finally, check for transactions in AIS that you believe are incorrect. Use the feedback option to mark them as Not Correct or Duplicate or Information is of Other Person. Submit the feedback before filing your return. This creates a documented trail if the department raises a query later.

What Happens If You Ignore the Mismatch?

The Centralised Processing Centre in Bengaluru runs automated checks. If your reported income does not match AIS data, the system flags your return. You may receive a notice under Section 143(1)(a) proposing an adjustment. You get 30 days to respond.

If the mismatch is large, you could receive a scrutiny notice under Section 143(2). This is a far more serious process that requires you to produce documents, attend hearings, and justify every figure. The time and stress involved are significant.

Interest under Section 234A, 234B, and 234C may also apply if the mismatch results in additional tax liability. Penalties under Section 270A for under-reporting can reach 50 percent of the tax on the under-reported amount.

How Sunshine Accountancy Handles AIS vs 26AS Reconciliation

Our team downloads your AIS, TIS, and 26AS on the day you engage us. We reconcile every line item against your bank statements, Form 16, and investment proofs. We flag discrepancies and submit AIS feedback where needed before filing your return.

This process takes between two and four hours for a typical salaried professional in Hyderabad. It is one of the most important steps in the entire filing process, and it is included in every ITR filing package we offer.

Ready to get your AIS and 26AS reconciled before filing? View our ITR filing packages or call us at +91 9676313137. You can also message us on WhatsApp to book a slot.