AIS Shows Wrong Income? How to Submit Feedback – Complete Practical Guide (2026)

The Annual Information Statement (AIS) has become one of the most important documents reviewed by taxpayers before filing their Income Tax Return (ITR). Since AIS consolidates information received from banks, employers, mutual fund houses, stock exchanges, registrars and various reporting entities, it frequently serves as the starting point for Income Tax Return preparation.

However, taxpayers are often surprised to find that AIS occasionally contains incorrect, duplicate or incomplete information. Examples include duplicated interest income, transactions belonging to another person, incorrect property transactions, duplicate dividend entries or financial information reported for the wrong Financial Year.

Finding an incorrect entry in AIS does not automatically mean that additional tax is payable. Nor does it necessarily indicate any wrongdoing by the taxpayer. Since AIS is based on third-party reporting, errors can occur at the reporting stage itself.

The Income Tax Department has therefore provided a feedback mechanism that allows taxpayers to report incorrect information appearing in AIS. Submitting feedback at the appropriate stage helps improve the quality of departmental records and reduces the likelihood of future mismatch notices, defective return communications, or even reassessment proceedings.

This guide explains when feedback should be submitted, how the AIS feedback mechanism works, situations in which feedback is appropriate, common taxpayer mistakes and practical guidance for responding to incorrect AIS entries.

Who Should Read This Guide?

This guide is useful for:

• Salaried employees identifying discrepancies in reported employer salaries or TDS entries.
• Pensioners with multiple savings bank interest and fixed deposit data packets.
• Active retail investors tracking capital market trades, mutual funds, and equity dividends.
• Business owners and freelancers reconciling business receipts with auto-populated SFT summaries.
• Chartered Accountants and tax practitioners looking for a structured reference to submit portal corrections.
• Anyone reviewing AIS before choosing their correct ITR form.

Quick Answer

If your AIS contains incorrect or duplicate transactions, you should first verify the entries with your own physical statements before submitting formal corrections on the portal.

Feedback should be submitted only after verifying supporting documents such as bank statements, Form 26AS, investment reports and books of account. Learn more about comparing these documents in our AIS vs Form 26AS vs TIS Guide.

Why This Matters

The Income Tax Department increasingly compares AIS data against your returned forms. Discrepancies between your filed return and the auto-computed database can result in automated prima facie adjustments, tax demand notices under Section 143(1), or full-blown scrutiny. This is a baseline rule we emphasize across direct and indirect taxes—such as resolving transactional mismatches to avoid GST audits as detailed in our guide on common mistakes that lead to GST demand confirmation.

Addressing reporting discrepancies before submitting your Income Tax Return is always easier and safer than defending an incorrect return during assessment or challenging an adverse order in an Income Tax Appeal.

Why Can AIS Show Incorrect Income?

AIS is prepared based on information reported to the Income Tax Department by various third-party reporting entities (banks, registrars, exchanges, sub-registrars, employers) under specified rules. Although the reporting framework is automated, data discrepancies frequently occur due to:

• Clerical typing or data entry mistakes by the reporting entity’s accounts team.
• Duplicate reporting of the same financial asset split across multiple registration codes.
• Wrong PAN quoting during off-market securities transfers or land deeds registrations.
• Reporting of interest or dividend transactions for the wrong Financial Year due to accounting cutoff dates.
• Double logging of joint-ownership transactions under both co-owners’ PANs.

How to Submit AIS Feedback: Step-by-Step Method

The e-filing portal provides a dynamic, integrated feedback loop that recomputes active values in real-time. Follow this professional workflow to submit feedback:

Common Mistakes Taxpayers Make While Using AIS

Avoiding easily preventable mistakes during the pre-filing stage is highly critical to avoiding automated inquires. Ensure your team avoids these common errors:

Frequently Asked Questions (FAQs)

How We Approach AIS Reconciliation at VirtualTax

At VirtualTax, we do not treat return filing as a simple data-entry exercise. Our approach is built on technical accuracy and systematic preparation. Before preparing your return, we execute a comprehensive pre-filing diagnostic—reconciling your Form 16, Form 26AS, AIS, and TIS with your bank transactions. This helps isolate and resolve data mismatches early, ensuring faster refund processing and minimizing the risk of automated departmental notices, appellate disputes, or adverse ITR form selections.