Income Tax Refund Mismatch: How to Resolve with AIS & Form 26AS
- Dipali Waghmode
- Nov 30, 2025
- 9 min read
Income tax refund mismatches in India—especially those involving inconsistencies between the Annual Information Statement (AIS) and Form 26AS—often delay refund processing or lead to rejection. These mismatches typically occur when TDS or tax credit details don’t align due to reporting errors, delays, or deductor mistakes. With new CBDT guidelines and recent High Court judgments, taxpayers can now resolve such discrepancies through updated reconciliation processes and digital correction tools. Platforms like TaxBuddy help simplify this process by identifying mismatches early and providing guided steps to fix them efficiently.
Table of Contents
Understanding Refund Mismatches Between AIS and Form 26AS
Refund mismatches between the Annual Information Statement (AIS) and Form 26AS are increasingly common due to multiple data sources being integrated into the income tax system. While Form 26AS reflects details of TDS, TCS, advance tax, and refunds issued by the department, the AIS goes further to include data from banks, mutual funds, property registries, and financial institutions. A refund mismatch usually occurs when the refund credited to your bank account doesn’t match the amount shown in AIS or 26AS. These mismatches can arise from delayed updates, clerical errors, or incorrect pre-validation of bank accounts. Identifying and rectifying them promptly is crucial to ensure accurate tax records and avoid future complications during scrutiny or assessment.
Common Causes of Income Tax Refund Mismatch
Refund mismatches can arise for several reasons. A frequent cause is delayed data synchronization between the Central Processing Centre (CPC) and AIS. Sometimes, refunds processed late in the financial year reflect in a different assessment year. Incorrect bank account details or non-prevalidated accounts also result in failed or delayed refund credits. Another major reason is discrepancies in TDS reporting by employers, banks, or deductors, leading to differences between actual refund due and what the AIS shows. Occasionally, manual rectifications or adjustments by the department against previous dues can also alter the refund figure reflected in AIS or 26AS.
Legal Position and Latest CBDT & Court Directions
The Central Board of Direct Taxes (CBDT) has clarified that taxpayers must reconcile data between AIS and 26AS before filing returns or seeking rectifications. Courts have also upheld that discrepancies due to system-generated mismatches should not penalize taxpayers if they have correctly reported income and paid taxes. As per CBDT circulars, AIS acts as a supplementary tool for taxpayer information but does not override 26AS when computing actual tax liability or refund eligibility. Taxpayers can file online feedback in AIS for any incorrect entries, and the department is mandated to verify and update them accordingly.
Step-by-Step Process to Resolve Refund Mismatches
Resolving refund mismatches between the AIS (Annual Information Statement) and Form 26AS is important to ensure your tax records remain accurate and your refund is processed smoothly. The Income Tax Department uses both these statements to validate refund details, so any inconsistency can delay crediting the refund or trigger unnecessary scrutiny. The following steps explain how to resolve refund mismatches in a clear and structured manner.
First, log in to the Income Tax e-filing portal using your registered user ID, password, and date of birth or incorporation. After logging in, navigate to the 'e-File' menu and select 'Income Tax Returns' to access relevant sections. Ensure that you are viewing data for the correct assessment year since mismatches often occur when users check the wrong year.
Next, download both the AIS and Form 26AS for the same assessment year. The AIS can be accessed from the Compliance Portal under the 'Services' tab, while Form 26AS is available through the TRACES link on the e-filing portal. These documents contain details about tax deducted at source (TDS), advance tax payments, and any refunds issued by the department.
Once both statements are downloaded, carefully compare the refund-related details in each. Look at the refund amount, the date of issue, and the status. For example, if the AIS shows a refund issued but Form 26AS does not, or if the amounts differ, this may indicate an issue in data reporting or processing. It is also advisable to check your bank account to confirm whether the refund has been credited, as sometimes the AIS reflects processed refunds even before the bank updates the transaction.
If you identify a discrepancy, go to the AIS section on the portal and submit feedback for the mismatched entry. Choose the most appropriate reason from the available options such as “information is incorrect,” “duplicate entry,” or “information does not pertain to me.” Provide accurate details while submitting the feedback to help the department update records effectively. Once submitted, the feedback status can be tracked in the AIS portal to check if the correction has been accepted.
If the mismatch persists even after submitting feedback, escalate the issue by filing a grievance through the ‘e-Nivaran’ section on the Income Tax portal. In your grievance, mention the exact nature of the mismatch and attach supporting documents like the refund order, Form 26AS, and bank statement showing the credited or pending refund. Alternatively, if the mismatch affects your return computation, you can file a rectification request under Section 154 using the ‘Rectification’ option in the e-filing portal. This allows the department to reprocess your return with the corrected refund details.
After submitting a grievance or rectification, monitor the status periodically. Once the issue is resolved, ensure that the updated refund figures are consistent across the AIS, Form 26AS, and your filed return. Keeping copies of all relevant documents and communication acknowledgements is recommended for future reference. By following this process, taxpayers can ensure transparency, prevent refund delays, and maintain accurate tax records with the Income Tax Department.
Implications of Ignoring a Refund Mismatch
Ignoring a refund mismatch can have serious consequences for taxpayers, both in the short and long term. When the refund amount reflected in the Income Tax Department’s records differs from what the taxpayer has claimed or expected, it indicates a discrepancy in the return or processing. This mismatch can occur due to errors in data entry, incorrect bank details, differences between Form 26AS, AIS, and TIS, or mismatched TDS credits.
Such inconsistencies may lead to delays in refund issuance, as the system automatically holds the refund until the discrepancy is resolved. In some cases, the department may issue a notice under Section 143(1)(a) for return mismatch, asking for clarification or rectification. If the difference is not addressed promptly, it could escalate to scrutiny under Section 143(2), where detailed assessments are carried out to verify the correctness of income, deductions, and tax credits.
Additionally, persistent refund mismatches can result in demand notices if the system concludes that excess refunds were claimed or incorrect TDS credits were utilized. Under Section 245, the department has the authority to adjust pending refunds against any outstanding tax dues from previous years, creating further confusion if past discrepancies remain unresolved.
Inaccurate tax credit records may also affect future filings, as automated systems cross-check data from AIS, Form 16, and TDS records. If these continue to show mismatched figures, taxpayers might face repeated delays or denials of refunds. This can also impact the credibility of the taxpayer’s compliance history and increase the likelihood of future scrutiny.
To prevent such complications, it is advisable to regularly verify refund status on the income tax portal, reconcile details from Form 26AS, AIS, and bank records, and file rectification requests under Section 154 whenever mismatches occur. Using a professional tax-filing platform such as TaxBuddy can simplify this process by automatically reconciling data, identifying discrepancies, and ensuring that refunds are processed smoothly without errors or delays.
How TaxBuddy Simplifies Refund Reconciliation
TaxBuddy streamlines the refund reconciliation process through automated AIS-26AS comparison tools. It identifies mismatches, highlights incorrect TDS credits, and ensures accurate reporting in your ITR. Users can also receive professional guidance to file feedback or rectifications with the department. The platform’s expert-assisted filing ensures that every credit, refund, or tax adjustment is reflected correctly, reducing the chances of notices or refund delays. By integrating real-time data from the income tax portal, TaxBuddy helps taxpayers achieve complete transparency in refund tracking and compliance.
Conclusion
Reconciling refund mismatches between AIS and Form 26AS is an essential part of maintaining accurate tax records. Most discrepancies arise due to technical or data entry errors and can be resolved easily through the AIS feedback system or rectification requests. Ensuring that both statements align with the actual refund received prevents future issues with tax authorities. TaxBuddy provides a seamless and reliable way to detect, verify, and resolve such mismatches, ensuring accurate filing and faster refunds.
For anyone looking for assistance in tax filing or refund reconciliation, it is highly recommended to download the TaxBuddy mobile app for a simplified, secure, and hassle-free experience.
FAQs
Q1. What is the difference between AIS and Form 26AS for refund tracking? Form 26AS serves as the official tax credit statement maintained by the Income Tax Department and includes details of TDS, advance tax, self-assessment tax, and refunds issued. AIS (Annual Information Statement) provides a broader view—it consolidates information from multiple sources such as banks, mutual funds, stockbrokers, and other entities. While AIS is helpful for data verification, Form 26AS remains the final and authoritative record for refund confirmation and tax credit reconciliation.
Q2. Why does my AIS show a refund that I haven’t received? This can occur when the refund has been processed but not yet credited to your bank account. Sometimes delays happen due to incorrect bank details, unvalidated accounts, or pending clearance from the Centralized Processing Centre (CPC). To verify, log in to the Income Tax e-filing portal and check the “Refund Status” section. Ensure your account is prevalidated and linked with your PAN for faster processing.
Q3. My 26AS shows a different refund amount than AIS. Which one is correct? Form 26AS should be treated as the final record for refund and tax credit confirmation because it is directly maintained by the Income Tax Department. AIS data, though informative, is sourced from multiple channels and may not always reflect real-time updates. Hence, in case of mismatch, rely on Form 26AS for accurate figures and future tax computations.
Q4. What should I do if the refund in AIS doesn’t match the bank credit? When the refund entry in AIS does not match the actual amount credited to your bank, you should log in to your AIS portal and select the relevant transaction. Use the “Submit Feedback” option and choose “Information is incorrect.” You can upload supporting documents like bank statements or screenshots from the refund tracking portal to substantiate your claim. This helps the department verify and correct the discrepancy.
Q5. Can a mismatch between AIS and 26AS delay my future refunds? Yes, if discrepancies are not resolved, they can affect future refund processing. The Income Tax Department cross-verifies data from previous years before approving new refunds. Unresolved mismatches may trigger system flags, leading to delays or additional scrutiny. It’s best to correct the mismatch promptly by submitting feedback through the AIS portal or raising a grievance through e-Nivaran.
Q6. How long does it take for refund corrections to reflect after feedback submission? Typically, once feedback is submitted on the AIS portal, the correction process takes around 15 to 30 days. The exact duration depends on the verification speed by the data source and the Income Tax Department. You can track the status in your AIS account under the “Feedback” section.
Q7. What happens if I ignore a refund mismatch for several years? Ignoring mismatches can lead to cumulative inconsistencies between your AIS, Form 26AS, and actual refund records. Over time, these differences might result in incorrect carry-forward balances or even tax demand notices. It can also complicate future refund calculations or verification during scrutiny. Timely correction ensures clean records and smoother filings in subsequent years.
Q8. Can I file a grievance for refund mismatch on the portal? Yes, taxpayers can file a grievance under the ‘e-Nivaran’ tab on the e-filing portal. Provide the assessment year, refund details, and attach supporting evidence like a copy of your Form 26AS and bank statement. The Income Tax Department reviews such grievances and updates your records once verified.
Q9. Does refund mismatch affect my credit score or bank account status? No, refund mismatches do not affect your credit score or banking record. They are purely taxation-related discrepancies. However, unresolved issues can delay refunds or cause confusion during tax assessments. Always cross-check AIS and Form 26AS before filing to avoid such issues.
Q10. How can I confirm if my refund has actually been issued? You can verify refund issuance through two methods:
Visit the Income Tax e-filing portal, go to “View Returns / Forms,” and check refund details.
Alternatively, use the NSDL (now Protean) Refund Tracking page to see the refund status, amount, mode of payment, and date of issue. Ensure that the bank account used for receiving refunds is prevalidated and active.
Q11. Are refund mismatches common for first-time filers? Yes, they are fairly common among first-time taxpayers due to errors like incorrect bank account numbers, mismatched IFSC codes, or delayed AIS data updates. Often, the refund gets approved but fails to credit because of prevalidation issues. Ensuring accurate details in your e-filing profile and using a verified filing platform can prevent such mismatches.
Q12. How does TaxBuddy help prevent refund mismatches in future filings? TaxBuddy automatically compares your AIS, Form 26AS, and TDS data before finalizing the return. It highlights discrepancies, corrects entries, and ensures all refunds are accurately reported. By automating cross-verification and using expert review, TaxBuddy minimizes human error and guarantees smooth, compliant, and timely refund processing for every taxpayer.
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