What Should I Do If AIS Shows Incorrect Income?

One thing I learned is that AIS is an information statement, not necessarily a perfect statement of your final taxable income.

It can contain information received from different reporting entities, including SFT information, TDS/TCS information and other information. The Income Tax Department describes AIS as a comprehensive view of taxpayer information and says it is intended to help taxpayers review information before filing their return.

So if something looks wrong, I wouldn't panic.

But I also wouldn't simply ignore it.

If the information is genuinely incorrect, use the available AIS feedback facility and contact the source that reported the information. Keep supporting documents showing what actually happened.

Also check your TIS (Taxpayer Information Summary) because processed and derived values can be reflected there and may be relevant to pre-filling.

For an NRI, I'd be particularly careful with bank interest, dividends, capital gains and TDS because there can be multiple reporting sources.

I had something similar with a transaction that I didn't recognize.

Before submitting feedback, I contacted the institution that appeared to have reported the information. They confirmed that the PAN had been used incorrectly on their reporting record.

That was useful because the reporting entity ultimately needed to correct its information.

The Income Tax Department's AIS guidance specifically provides a feedback mechanism, but I wouldn't assume that submitting feedback means the original reporting entity's records have automatically been corrected. AIS can show the reported value and modified value after taxpayer feedback/source confirmation.

I'd therefore do two things at the same time:

1. Check your own records carefully.
2. Ask the bank, employer, mutual fund, broker or other reporting entity to investigate the entry.

Keep copies of everything.

If the amount is significant, I'd also have a tax professional review how it should be treated in the ITR rather than simply ignoring it because you believe AIS is incorrect.

I had an incorrect interest entry in my AIS last year. It was from a bank account, but the amount didn't match my bank certificate.

I first checked my bank statement and Form 16A to make sure I wasn't overlooking a transaction. After confirming the discrepancy, I used the feedback option in AIS against that particular entry.

The Income Tax Department currently allows taxpayers to provide feedback on active information displayed under TDS/TCS, SFT and Other Information. You select the relevant information, choose the appropriate feedback option and submit the details.

After submitting it, I could see the feedback in AIS and download an acknowledgment receipt. The department says the modified value can also be displayed alongside the reported value after feedback is submitted.

I'd definitely keep the bank statement and correspondence with the bank. The AIS entry itself isn't the only thing I'd rely on when determining actual income.

My issue involved dividend income rather than bank interest.

The amount shown in AIS was higher than what my broker's annual statement reflected. I contacted the broker first because they were the reporting entity, and they explained that a revised statement would be submitted to the tax department.

I waited until the revised information appeared before filing my return because my due date wasn't close. If your filing deadline is approaching, you may not have that flexibility, but I'd still recommend checking with the reporting institution before assuming the AIS is correct.

One thing I've learned is that AIS is an important reference, but it's not meant to replace your own records.

Every year I compare my AIS with Form 16, Form 26AS, bank statements, and investment reports. If something doesn't match, I investigate it before filing.

The AIS portal also allows taxpayers to submit feedback on certain entries if they believe the information is incorrect. That doesn't automatically change the data immediately, but it creates a record that you've identified a discrepancy. At the same time, contacting the reporting institution—such as your bank or broker—is often the quickest way to understand why the mismatch occurred.