Form 26AS vs AIS vs TIS — What Every CA Must Know for ITR Filing
The Income Tax Department now has three data documents — Form 26AS, AIS (Annual Information Statement), and TIS (Taxpayer Information Summary). Understanding which one to use for what, and how to handle mismatches, is essential for every CA.
Why This Triad Matters for Your CA Practice
Before AIS was introduced in November 2021, CAs relied entirely on Form 26AS for TDS credit reconciliation. Now there are three overlapping documents, and the Income Tax Department is actively using AIS data to auto-generate compliance questions and scrutiny cases. As a CA, you must know what each document shows, how they differ, and what to do when your client's income in AIS doesn't match what they've declared.
Form 26AS — The Classic TDS Statement
Form 26AS is generated by TRACES and shows:
- Part A: TDS on salary, interest, professional fees, rent, dividends — deducted and deposited by various deductors
- Part B: TCS (Tax Collected at Source)
- Part C: Self-assessment tax and advance tax paid
- Part D: Refunds received in the year
- Part E: SFT (Statement of Financial Transactions) — high-value transactions
- Part F: TDS on sale of immovable property (Section 194-IA)
- Part G: TDS defaults (short deduction, non-deduction flagged by TRACES)
For ITR filing, Part A and Part C are the most critical. TDS credit in the ITR must match Part A exactly. Any mismatch causes a 143(1) intimation demanding additional tax.
AIS — Annual Information Statement
AIS is a comprehensive view of all financial transactions reported to the Income Tax Department by various reporting entities. Available on the Income Tax e-Filing portal under 'Services → AIS'. It shows:
- Salary income (from employer TDS returns)
- Interest income (from bank SFT filings)
- Dividend income (from companies / RTA SFT)
- Securities transactions (from BSE/NSE, depositories)
- Mutual fund transactions (from AMC / RTA SFT)
- Real estate transactions (from Registrar SFT)
- Foreign remittances (from banks)
- GST turnover (from GSTN)
- Rent received (from tenants filing 194-IB)
- Purchase of high-value goods
AIS is far more comprehensive than Form 26AS. The Department uses it to cross-check whether income declared in the ITR matches what reporting entities have reported.
TIS — Taxpayer Information Summary
TIS is a simplified summary of AIS — it shows the aggregate of each income category with two columns: "reported value" (as per reporting entities) and "processed value" (after accounting for feedback submitted by the taxpayer). Use TIS when filing the ITR — it gives you the clean, reconciled numbers you need to enter in each schedule.
How to Use These Three Documents for ITR Preparation
- Download all three: Form 26AS (from TRACES), AIS and TIS (from Income Tax portal) for the relevant assessment year
- Reconcile TDS credits: Match Form 26AS Part A with the TDS schedule in ITR. Every TDS entry in Part A must appear in the ITR's TDS schedule.
- Check AIS for undeclared income: Cross-check AIS interest income against your client's bank interest. Check dividend income from all companies. Check mutual fund redemption data — if your client has redeemed MF units, the capital gains must be reported in ITR-2.
- Submit feedback on incorrect AIS entries: If AIS shows income that is incorrect (e.g., sale transaction reported by a builder that actually belongs to someone else), submit feedback through the AIS portal marking it as "Incorrect" or "Duplicate". The TIS processed value will update.
- Use TIS values in ITR: When entering income in ITR schedules, use the TIS "processed value" — this aligns with what the Department expects to see.
Common AIS Issues and How to Handle Them
- Interest income higher than actual: Often because the bank has reported gross interest (before TDS) while the client's records show net. Always use gross interest as income in the ITR, and claim TDS as a credit.
- Mutual fund transactions showing incorrect amounts: Happens when a client has switched plans or done a STPs — each switch is treated as a redemption. Obtain the full transaction statement from CAMS/KFintech and reconcile.
- Property sale showing twice: Both buyer and seller's names may appear in the Registrar's SFT. If your client is the buyer, ignore the property sale entry (it shows as "purchase of immovable property"). If they're the seller, report the capital gains correctly.
- Freelance income appearing as "other income": The GST portal reports aggregate turnover. Clients filing ITR-3 must ensure professional income in the return matches GST turnover data visible in AIS.
