How to Submit AIS Feedback and Correct Mismatches to Avoid Income Tax Notices (AY 2026-27)

Why AIS Mismatches Are the Leading Cause of Tax Notices

The Income Tax Department now receives data from over 50 reporting entities — banks, mutual fund houses, stock brokers, employers, property registrars, and even cryptocurrency exchanges. All this data flows into your Annual Information Statement (AIS), and the department's automated systems compare it against what you report in your ITR.

When there is a mismatch — even a small one — the system flags your return. The result is typically a notice under Section 143(1)(a) demanding you explain the difference or pay additional tax with interest. In AY 2025-26 alone, lakhs of taxpayers received such notices for discrepancies as small as Rs 5,000.

The good news: the AIS feedback mechanism lets you correct errors before you file, so your ITR matches the department's corrected records from the start.

Common Types of AIS Mismatches

Before rushing to submit feedback, understand what kind of mismatch you are dealing with:

Genuinely Wrong Information

• A bank reports interest on a joint account entirely under your PAN when it should be split
• An old employer reports salary that was actually paid in the previous financial year
• A mutual fund house reports a transaction that belongs to a different family member
• A property transaction appears with an inflated value due to reporting errors

Duplicate Entries

• The same salary income reported by two PANs of the same employer (common after mergers or PAN changes)
• Same mutual fund redemption appearing twice due to a registrar correction
• FD interest reported by both the bank branch and the head office

Correct Information You Missed

This is not truly a mismatch — the AIS is right, and you forgot to include this income. In this case, do not submit feedback. Instead, include the income in your ITR. Common examples:

• Savings account interest from a dormant account
• Small dividend payments from shares you forgot you held
• TDS deducted by a client you invoiced months ago

Step-by-Step: How to Submit AIS Feedback

Step 1: Access Your AIS

1. Log in to the income tax e-filing portal at incometax.gov.in
2. Go to Services → Annual Information Statement (AIS)
3. You will be redirected to the compliance portal
4. Select the relevant Assessment Year (AY 2026-27 for FY 2025-26 income)
5. Click on AIS (not TIS — you submit feedback on the AIS and the TIS updates automatically)

Step 2: Identify Discrepancies

Review each section carefully:

Step 3: Submit Feedback for Each Incorrect Entry

1. Click on the specific transaction category (e.g., "Interest Income")
2. Click on the information source (e.g., "State Bank of India")
3. You will see individual transaction entries. Click on the entry you want to dispute
4. Click "Optional" button next to the entry — this opens the feedback form
5. Select the appropriate feedback type:

6. Enter the correct amount or explanation in the text field
7. Click Submit

Step 4: Check Your TIS After Submitting Feedback

After you submit AIS feedback, the Taxpayer Information Summary (TIS) — which is the derived/computed version — should reflect your correction. The TIS shows the "Derived Value" that the department expects to see in your ITR.

If the TIS derived value still does not match your actual income after feedback, it may take a few days to update. Check back before filing.

Practical Examples

Example 1: Joint Account Interest Split

Situation: Your AIS shows Rs 85,000 as interest income from a joint savings account with your spouse. You are the second holder and the agreed split is 50:50.

Action:

• Select feedback: "Information is not fully correct"
• Enter correct amount: Rs 42,500
• Add note: "Joint account — 50% share. First holder PAN: [spouse's PAN]"

In your ITR: Report Rs 42,500 as savings account interest.

Example 2: Duplicate Mutual Fund Entry

Situation: The same redemption of Rs 2,00,000 from an ELSS fund appears twice — once from the AMC and once from the RTA (Registrar and Transfer Agent).

Action:

• On the duplicate entry, select: "Information is duplicate"
• Add note: "Same redemption already reported by [AMC name] on [date]"

In your ITR: Report the capital gain only once.

Example 3: Employer Reported Wrong Salary

Situation: You switched jobs in March 2026. Your old employer reports Rs 1,50,000 as salary for April 2026 (which is FY 2026-27, not FY 2025-26). This inflates your AIS for AY 2026-27.

Action:

• Select feedback: "Information relates to other PAN/year"
• Specify: "This salary pertains to FY 2026-27 (AY 2027-28), not FY 2025-26"

In your ITR: Report only the salary you actually received in FY 2025-26 as per your Form 16.

Example 4: Property Transaction Value Mismatch

Situation: You sold a property for Rs 55 lakh (actual consideration), but the AIS shows Rs 62 lakh because the stamp duty value was higher.

Action:

• Select feedback: "Information is correct" — because for tax purposes, Section 50C deems the stamp duty value as the sale consideration when it exceeds the actual amount
• Do not dispute this. You need to compute capital gains using Rs 62 lakh as the deemed consideration

This is a case where the AIS is technically right, even though you received less. Disputing it will not help and may trigger further scrutiny.

What Happens After You Submit Feedback

1. Immediate effect on TIS: Your TIS derived value updates within 1-3 days to reflect the feedback
2. Reporting entity is notified: The bank/AMC/broker receives your feedback and may accept or reject it
3. Acceptance: If the reporting entity accepts your feedback, the AIS entry is corrected permanently
4. Rejection: If rejected, the original value remains. You can still file your ITR with the correct value and explain the difference in the verification stage if a notice comes

Important: Even if feedback is rejected, file your ITR with the correct income. The feedback creates a documented trail showing you flagged the discrepancy proactively — this works strongly in your favour if the case goes to the CPC for processing.

Timeline: When to Submit AIS Feedback

Filing before the TIS updates is not a problem — but filing with values that match your corrected feedback (not the original AIS) is critical.

Tips to Prevent Future Mismatches

1. Consolidate bank accounts: Fewer accounts means fewer data points to verify. Close dormant accounts you no longer use.

2. Keep joint account agreements documented: If you have joint FDs or savings accounts, maintain a written record of the income-sharing ratio. Banks often report 100% to the first holder by default.

3. Download broker P&L statements early: Do not rely on memory for capital gains. Your broker's tax P&L (available from April) is the single source of truth for securities transactions.

4. Match Form 16 with AIS immediately: The moment you receive Form 16 from your employer (usually by June 15), compare the salary figure against what AIS shows. Mismatches caught early are easiest to resolve.

5. Use 49Tax's AIS cross-check: When you upload your documents on 49Tax, the platform automatically flags mismatches between your Form 16, bank statements, and the income reported in AIS — so you know exactly what to dispute before filing.

What If You Already Filed Without Checking AIS?

If you have already filed your ITR and later discover the AIS shows additional income you missed:

• If the difference is genuine income you forgot: File a revised return under Section 139(5) before December 31, 2026. Include the missed income and pay any additional tax with interest under Section 234A/B/C.
• If the AIS entry is wrong: Submit AIS feedback now (you can submit feedback even after filing) and keep documentation ready in case a 143(1) notice arrives.
• If a notice has already arrived: Respond within the time limit (usually 30 days). If the AIS entry was wrong, your feedback submission timestamp serves as evidence that you disputed it.

For a detailed guide on responding to notices, see our post on how to respond to income tax notices.

Key Takeaways

The AIS feedback mechanism is your first line of defence against automated mismatch notices. Treat it as a mandatory pre-filing step:

1. Check your AIS in June — do not wait until the last week of July
2. Submit feedback for every incorrect entry — even small amounts matter to the automated system
3. Wait for TIS to update before filing your ITR
4. File with correct values regardless of whether feedback is accepted — the feedback trail protects you
5. Keep supporting documents (bank statements, broker reports, Form 16) for at least 6 years in case of reassessment

Proactive taxpayers who clean up their AIS before filing almost never receive mismatch notices. The 30 minutes you spend reviewing your AIS can save you months of notice-response hassle.