AIS/TIS Mismatch Income Tax Notice: How TaxBuddy Compares AIS, TIS, and Your ITR
- Dipali Waghmode
- 14 hours ago
- 8 min read
AIS/TIS mismatch income tax notices arise when reported data in the Annual Information Statement and Taxpayer Information Summary does not align with the income declared in an ITR. These discrepancies often stem from incorrect TDS entries, missing interest income, duplicated transactions, or reporting errors from banks, employers, and financial institutions. Unresolved mismatches may lead to notices under sections like 143(1)(a) or 139(9). Accurate reconciliation is essential for error-free filing, and platforms such as TaxBuddy simplify this process with automated comparison tools that match AIS, TIS, and ITR data to highlight inconsistencies before a notice is triggered.
Table of Contents
Understanding AIS, TIS, and Why Mismatches Occur
The Annual Information Statement captures financial transactions reported by banks, mutual funds, employers, and registrars. Interest income, TDS details, securities trades, property transactions, and dividend credits appear here. TIS condenses this data into a summary used for auto-populating returns on the income tax portal. Mismatches arise when reported figures do not align with actual income, due to timing differences, clerical errors, incorrect PAN tagging, or duplication of entries. Since multiple reporting entities submit data independently, inconsistencies are common, leading to discrepancies between AIS, TIS, and the values reflected in the return.
Common Reasons for AIS/TIS Mismatch in Income Tax Filing
Several recurring factors create gaps between AIS/TIS data and the income disclosed in returns:
• Interest income appearing multiple times across savings, term deposits, and recurring deposits • Incorrect TDS entries from banks or employers • Securities and mutual fund transactions reported with wrong values • Reversal transactions still appearing as taxable gains • High-value or unrelated transactions wrongly mapped to a taxpayer's PAN • Delay in data updates, causing older entries to remain uncorrected • Employer payroll mismatches in Form 16 and the AIS statement
These issues frequently lead to under-reported or over-reported income when the return is filed without reconciliation.
How AIS/TIS Mismatch Leads to Income Tax Notices
When the values in a return do not match the numbers shown in AIS or TIS, the income tax system automatically flags the inconsistencies. Intimations under Section 143(1)(a) typically appear when income or TDS claims deviate from system-generated records. More severe gaps, such as missing interest income or unreported securities gains, may result in a defect notice under Section 139(9). In some cases, repeated discrepancies trigger scrutiny notices, especially where high-value transactions are involved. These notices seek clarification, correction, or evidence supporting the values reported in the return.
Consequences of Not Correcting AIS/TIS Mismatch Before Filing ITR
Ignoring mismatches often delays return processing, increases the likelihood of tax demands, and may block refunds. When discrepancies remain unresolved, automated adjustments may be made by the system, recalculating taxable income based on AIS/TIS figures. This can lead to additional tax liability, interest charges, and penalties. In more complex cases, persistent mismatches may escalate to detailed scrutiny, requiring extensive documentation and explanations. Resolving mismatches early ensures smoother filing and reduces the risk of prolonged correspondence with the tax department.
How TaxBuddy Compares AIS, TIS, and Your ITR Automatically
TaxBuddy uses automated reconciliation to highlight the smallest variations between AIS, TIS, and the return being prepared. The system scans uploaded documents such as Form 16, interest certificates, broker statements, and bank account summaries. Each figure is matched against AIS and TIS entries to detect missing income, incorrect TDS amounts, reversal errors, and duplication. A detailed mismatch report outlines inconsistencies with recommended actions. This structured comparison removes manual effort and ensures that income and deductions align perfectly with tax department records before filing.
Documents Required to Reconcile AIS, TIS, and ITR
Effective reconciliation requires supporting documents that reflect income and tax credits accurately. Key documents include:
• Form 16 issued by employers • Bank statements for interest income validation • Term deposit and recurring deposit interest certificates • Broker statements for equity, mutual fund, and bond transactions • Form 26AS for TDS cross-verification • Rental income statements and property transaction documents • Capital gains reports from investment platforms
Matching these documents with AIS and TIS ensures transparency and prevents inconsistencies.
How to Submit Feedback for Incorrect AIS/TIS Entries
The AIS portal allows taxpayers to tag transactions as correct, partially correct, or incorrect. When a mismatch is identified, feedback must be submitted for each affected entry. Supporting evidence such as bank statements or broker reports helps justify the correction. Once feedback is provided, the system reviews the inputs and updates the revised TIS accordingly. Corrected figures are then used to align the return with accurate data. This process ensures that incorrect entries do not influence tax calculations or lead to notices.
How TaxBuddy Helps Fix AIS/TIS Errors Through Its Mobile App
TaxBuddy’s mobile app streamlines the correction process by detecting mismatches instantly after document upload. The app consolidates relevant data and offers guided steps for submitting feedback on the income tax portal. Automated prompts help identify incorrect interest entries, reversed trades, or misreported TDS credits. Users can upload proofs directly within the app, enabling experts to intervene where complex mismatches appear. For returns needing revision, the app supports a structured filing path that eliminates errors before submission.
AIS/TIS Mismatch for Salaried, Freelancers, and Business Taxpayers
Mismatch patterns vary across income categories. Salaried individuals typically experience discrepancies in interest income, employer-reported TDS, and tax-saving investments. Freelancers encounter mismatches from multiple payout sources, platform TDS, and professional receipts misreported under different heads. Business taxpayers face inconsistent reporting of GST-linked incomes, loan interest, and capital transactions. TaxBuddy’s reconciliation model adapts to each income type, ensuring that income and deductions are reflected accurately irrespective of complexity.
Preventing Future AIS/TIS Mismatch Issues With TaxBuddy
Proactive reconciliation reduces the risk of future mismatch-related notices. Uploading documents on TaxBuddy’s platform early in the financial year helps align reported data with AIS records. Regular statement checks prevent interest income and TDS discrepancies from accumulating. TaxBuddy’s system flags missing entries and ensures that all income streams—from salaries to securities—are accounted for in the return. This continuous comparison maintains consistency and protects taxpayers from preventable mismatches.
Conclusion
Accurate reconciliation of AIS, TIS, and return data ensures smoother filing, faster refunds, and fewer chances of mismatch notices. Automated comparison tools and guided support reduce errors across income types, from simple salaried profiles to complex investment-heavy cases. Platforms such as TaxBuddy enhance the process with structured mismatch detection and document-based validation. For anyone looking for assistance in tax filing, it is highly recommended to download the TaxBuddy mobile app for a simplified, secure, and hassle-free experience.
FAQs
Q1. Does TaxBuddy offer both self-filing and expert-assisted plans for ITR filing, or only expert-assisted options? TaxBuddy provides both options, allowing taxpayers with different levels of complexity to choose the filing method that suits them. Self-filing works well for individuals with predictable income, limited deductions, and straightforward tax data. Expert-assisted plans are designed for cases involving AIS/TIS mismatches, high-value transactions, capital gains, foreign income, rental income, or multi-source earnings. These plans ensure that complex entries are reconciled accurately with AIS and TIS before filing. TaxBuddy’s experts verify documents, detect mismatches, and guide corrections, reducing the likelihood of notices.
Q2. Which is the best site to file ITR? The best platform is one that minimizes errors, simplifies reconciliation, and offers reliable assistance. TaxBuddy stands out due to its automated AIS/TIS comparison system, smart document scanning, and expert review options. These features help identify discrepancies early, especially those related to TDS credits, interest income, and capital gains. The platform also supports secure data handling and ensures full compliance with the latest Income Tax Act provisions. For taxpayers seeking accuracy and convenience, such verification-driven platforms provide a smoother filing experience.
Q3. Where to file an income tax return? ITR can be filed on the Income Tax Department’s official e-filing portal or through professional platforms that support accurate filing. Many taxpayers prefer using platforms like TaxBuddy because of built-in validation checks, guided workflows, and automated reconciliation of Form 16, AIS, TIS, and 26AS. Such platforms reduce the time spent on manual data entry and help avoid mismatch-related notices. Whether the return is simple or complex, these systems make the filing process clear and structured.
Q4. Why does AIS show higher income than the value reported in the ITR? AIS may display higher income due to duplicate reporting from banks, interest entries recorded across multiple accounts, incorrect TDS mapping, or failed reversal updates from financial institutions. Sometimes dividend credits, brokerage reports, or payouts from digital platforms are reported twice. If these values are not reconciled before filing, the return reflects a lower amount, creating a mismatch. Reviewing AIS and TIS carefully, along with bank and broker statements, helps identify the source of the difference.
Q5. How does TaxBuddy detect AIS/TIS mismatches before filing? TaxBuddy scans all uploaded documents—including Form 16, bank statements, interest certificates, and broker summaries—and compares them with AIS and TIS figures line-by-line. The system highlights missing entries, incorrect TDS credits, misreported capital gains, or reversed trades still appearing as taxable income. This automated approach ensures that no discrepancy is overlooked. Once mismatches are identified, TaxBuddy provides clear guidance on how to correct them or submit feedback through the income tax portal.
Q6. What happens if an AIS/TIS mismatch is ignored after filing? Unresolved mismatches often lead to automated adjustments in the tax system, causing recalculation of taxable income. This may result in higher tax liability, interest charges, or denial of refund claims. In many cases, the system issues an intimation under Section 143(1)(a) or a defect notice under Section 139(9). If the mismatch indicates substantial under-reporting or unexplained transactions, the case may be flagged for detailed scrutiny. Reconciling data before filing prevents these issues.
Q7. Can incorrect AIS entries be removed or corrected? Incorrect entries in AIS can be corrected by submitting feedback directly on the portal. Each transaction can be marked as “correct,” “partially correct,” “incorrect,” “duplicate,” or “relating to another PAN.” Supporting documents, such as proof of actual income or corrected broker statements, help validate the feedback. Once reviewed, the portal updates TIS with revised figures, ensuring the return reflects accurate data. TaxBuddy’s platform guides this entire process to avoid errors.
Q8. Can AIS/TIS mismatches affect refund processing? Yes. Refunds are delayed when AIS or TIS values differ from the income or TDS declared in the return. The system holds the refund until mismatches are clarified or corrected. Even small issues, such as missing interest income or incorrect TDS credits, can pause processing. Reconciling these entries before filing ensures a smooth refund experience. Platforms with automated verification, such as TaxBuddy, help prevent delays by validating all figures upfront.
Q9. Can TaxBuddy help with filing a corrected or revised return after an AIS mismatch notice? TaxBuddy offers complete support for filing corrected or revised returns when notices arise. The platform analyzes the notice, compares the tax department’s findings with AIS/TIS and the original return, and identifies what needs correction. Once the mismatch is resolved, TaxBuddy assists in preparing and submitting a revised or updated return in line with the Income Tax Act. This structured support helps ensure compliance and prevents further notices.
Q10. What documents should be uploaded on TaxBuddy to resolve AIS mismatches? A complete set of supporting documents helps reconcile AIS and ITR data accurately. These typically include Form 16, Form 26AS, interest certificates, bank statements, capital gains statements, broker transaction reports, insurance premium receipts, rental receipts, and proofs of deductions. Uploading these documents allows TaxBuddy to cross-check all values and detect inconsistencies early. This thorough verification prevents under-reporting or over-reporting issues that often trigger notices.
Q11. How does submitting feedback on AIS entries help avoid future notices? Feedback ensures that incorrect entries do not influence the final TIS summary. When taxpayers mark certain transactions as incorrect or duplicated, the system reviews the inputs and updates the statement accordingly. Corrected data prevents deviations between AIS/TIS and the filed return, reducing the chance of automated adjustments or mismatch notices. This proactive approach ensures the return aligns with verified income records from various institutions.
Q12. Is TaxBuddy safe for filing income tax returns? TaxBuddy follows secure data-handling protocols and ensures that sensitive information is encrypted during upload, storage, and processing. Automated checks, expert verification, and compliance-driven workflows minimize errors and reduce the likelihood of mismatch-related notices. The platform aligns with current Income Tax Act rules and supports both salaried and complex profiles. Its reliability and structured process make it a dependable choice for safe, accurate, and timely ITR filing.
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