Filing ITR for AY 2026-27: The Form 26AS vs AIS Check That Stops Notices

Every year around July, my inbox fills up with the same panicked message: "Sir, I filed my ITR last week and today I got an email from the Income Tax Department. What did I do wrong?" Nine times out of ten, the answer is the same — a small, avoidable mismatch between what they reported and what the department already knew. The department's systems are no longer manual. They cross-check your return against two data files — Form 26AS and the Annual Information Statement (AIS) — within minutes of you hitting submit.

Here's the surprising part: most of these notices aren't about huge undeclared income. They're triggered by tiny gaps — a ₹3,400 savings account interest you forgot, a dividend of ₹1,200 that your broker reported but you didn't, or TDS your old employer deducted but you never claimed. The system flags the gap automatically, and you spend the next three months replying to a notice for what was honestly just an oversight.

This article walks you through exactly how to do the Form 26AS AIS mismatch ITR check before you file for AY 2026-27, so your return sails through the first time. We'll cover what each statement contains, a step-by-step reconciliation process, a worked example, and how to run a quick tax estimate so there are no surprises on the final number.

Key Takeaways

• Form 26AS shows TDS, TCS and high-value transactions; the AIS is broader and includes interest, dividends, securities trades and more — always check both before filing.
• Most income-tax notices for salaried and freelance filers come from small, unreported income like savings interest or dividends — not large evasion.
• Download your AIS and 26AS from the e-filing portal at least a week before filing so you have time to fix errors via the feedback option.
• If the AIS shows wrong data, you can submit feedback online — don't ignore it and don't just file as-is.
• Reconcile your own bank statements, salary slips and broker P&L against the AIS line by line; a 15-minute check saves months of notice replies.
• Estimate your final tax with our Income Tax Calculator before filing so the self-assessment tax you pay matches the return.

What is the difference between Form 26AS and AIS?

Both are statements the Income Tax Department maintains for you, but they serve different purposes and don't contain identical data. Understanding this difference is the foundation of the whole exercise.

Form 26AS is your tax credit statement. It historically focused on:

• TDS deducted by your employer, bank, or clients (Form 16/16A data)
• TCS (tax collected at source) on things like car purchases above ₹10 lakh or foreign remittances
• Advance tax and self-assessment tax you paid
• Refunds issued
• Certain high-value transactions reported under the SFT (Statement of Financial Transactions)

The Annual Information Statement (AIS) is the newer, far more comprehensive document. It captures almost every financial footprint linked to your PAN:

• Salary, interest from savings and fixed deposits, dividends
• Sale and purchase of shares, mutual funds and other securities
• Rent received, foreign remittances, GST turnover (for business filers)
• Cash deposits, credit card payments above thresholds, property transactions

There's also a simplified version called the TIS (Taxpayer Information Summary), which aggregates AIS data category-wise and shows the "processed value" the department expects you to report. Think of the TIS as the executive summary and the AIS as the detailed ledger.

Common mistake: Many filers check only Form 26AS because that's what they did for years. But the AIS now catches savings interest, dividends and mutual fund redemptions that 26AS may not show. Skipping the AIS is the single biggest cause of post-filing notices today.

How do I download my Form 26AS and AIS for AY 2026-27?

Both are available free on the income-tax e-filing portal. Here's the exact walkthrough.

1. Go to incometax.gov.in and log in with your PAN as the User ID and your password.
2. For the AIS: click on the AIS menu (or "Services → Annual Information Statement"). A new tab opens with a separate portal.
3. Select the relevant financial year — for AY 2026-27 that's FY 2025-26.
4. You'll see two tiles: TIS and AIS. Download both as PDF. The PDF password is your PAN (lowercase) followed by your date of birth in DDMMYYYY format — for example, abcde1234f01011990.
5. For Form 26AS: go back to the main portal, click "e-File → Income Tax Returns → View Form 26AS", agree to the disclaimer, and you'll be redirected to the TRACES portal where you can view or download it.

Do this at least 7–10 days before you intend to file. Reporting entities (banks, brokers, employers) often update data into June and July, so a statement you pulled in May may be incomplete. I always tell clients: download fresh copies the same week you file.

What income gets reported in the AIS that people usually miss?

This is where the real reconciliation work happens. The categories below are the usual suspects behind the dreaded "mismatch" email.

Savings account interest

Even ₹2,000–₹5,000 of savings interest is reported. Many people assume it's tax-free — it isn't. You get a deduction up to ₹10,000 under Section 80TTA (old regime only), but you must still declare the income first. Senior citizens get a larger ₹50,000 deduction under 80TTB.

Fixed deposit interest

Banks deduct 10% TDS on FD interest above ₹40,000 (₹50,000 for seniors), but they report the full interest in your AIS regardless. So if your FD earned ₹38,000, no TDS was cut, but the ₹38,000 still appears — and you must report it.

Dividends

Since dividends became taxable in your hands (from FY 2020-21), every rupee of dividend from shares and mutual funds is reported. Even a ₹500 dividend credited to your demat shows up.

Capital gains from shares and mutual funds

Your broker and the depositories report every sale. The AIS shows the sale consideration; you compute the gain. This is the most common area for freelance investors to slip up.

Freelance and professional receipts

If clients deducted TDS under Section 194J (professional fees) or 194C, it shows in both 26AS and AIS. Your declared professional income should be at least the gross amount on which TDS was deducted.

A worked example: the Form 26AS AIS mismatch ITR check in action

Let me show you how this plays out with a realistic case.

Meet Ananya, a 31-year-old salaried marketing manager in Pune earning ₹14 LPA, who also does weekend freelance design work. Here's what she thinks her income is versus what the AIS actually shows:

Income source	What Ananya remembered	What AIS/26AS shows	Gap
Salary (gross)	₹14,00,000	₹14,00,000	₹0
Freelance fees (194J)	₹1,80,000	₹2,10,000	₹30,000
Savings interest	Not noted	₹6,400	₹6,400
FD interest	₹28,000	₹31,200	₹3,200
Dividends	Not noted	₹4,100	₹4,100
Equity capital gains	Not declared	₹18,000 (STCG)	₹18,000

Ananya's total under-reporting if she filed from memory: ₹61,700. None of it is dramatic, but every line is data the department already holds. Had she filed without checking, the automated system would have flagged the gap and issued a notice under Section 143(1)(a) proposing an adjustment — and possibly interest under Section 234B/234C on the shortfall.

The fix took her 20 minutes: she added the missing freelance ₹30,000, the ₹6,400 savings interest (claiming ₹6,400 under 80TTA since she's on the old regime), the corrected FD and dividend figures, and computed and reported the ₹18,000 short-term capital gain (taxed at 20% post the July 2024 change for STCG on equity). Clean return, no notice.

Step-by-step: reconciling your income before you file

Here's the exact process I run for clients each year. Do this and your Form 26AS AIS mismatch ITR risk drops to almost zero.

1. Lay out your three source documents: all bank statements for FY 2025-26, your Form 16 from the employer, and your broker's annual P&L / capital gains statement.
2. Open the TIS first. It gives you the category-wise totals the department expects. Use this as your checklist.
3. Match salary: Form 16 Part B gross salary should equal the AIS salary figure. Minor rounding is fine; large gaps mean a missing employer (common if you switched jobs).
4. Tick off interest income: add savings + FD interest from your bank statements and compare to the AIS. Banks sometimes report on accrual; you may report on receipt — note the basis and stay consistent.
5. Reconcile dividends and capital gains against your broker statement. The AIS sale consideration must match; you supply the cost and holding period.
6. Cross-check TDS in 26AS against every TDS entry. If an employer or client deducted TDS but it's missing, chase them — you can't claim credit the department can't see.
7. Flag any AIS error. If a figure is genuinely wrong (e.g. a transaction that isn't yours, or duplicated), use the "Optional" feedback button in the AIS portal to submit a correction.
8. Estimate your final tax using our Income Tax Calculator so you know whether self-assessment tax is due before you file.

Pro tip: When you disagree with an AIS entry, don't just leave it. Submit feedback choosing the right option ("Information is duplicate", "Information relates to other PAN", "Income is not taxable", etc.). The department records your response, and even if they don't immediately change it, your documented feedback is your defence if a notice ever comes. Silence is read as agreement.

Old vs new regime: how the mismatch affects your tax differently

Once your income is correctly reconciled, the regime you pick decides your final tax. Under the new regime for FY 2025-26, the basic exemption and rebate are more generous, but you lose deductions like 80C, 80TTA and HRA. Here's a simplified comparison at three income levels (salaried, standard deduction applied, illustrative).

Gross income	Old regime tax (with ₹1.5L 80C + ₹25k 80D)	New regime tax (FY 2025-26)	Better option
₹8,00,000	~₹33,800	~₹20,800	New
₹12,00,000	~₹93,600	~₹62,400	New
₹18,00,000	~₹2,57,400	~₹2,02,800	Depends on deductions

These are approximate and exclude 4% cess; your exact figure depends on your deductions. The point is that the same reconciled income produces very different tax under each regime — and that ₹6,400 of savings interest matters more under the old regime (where you can offset it with 80TTA) than the new. For a deeper breakdown, read our guide on old vs new tax regime and which one actually saves you more, and if you've ever wondered why your take-home feels small, our piece on why your in-hand salary is so much less than your CTC connects the dots.

What happens if I ignore the mismatch and file anyway?

If you under-report income that's sitting in your AIS, the most likely outcome is an intimation under Section 143(1)(a) proposing to add the missing income and recompute your tax. You get 30 days to respond. If you agree, you pay the difference plus interest under Sections 234B and 234C. If you disagree, you explain with evidence.

Worse cases — repeated or large omissions — can lead to a scrutiny notice under Section 143(2) or a reassessment under Section 148. Penalties for under-reporting income can be 50% of the tax on the under-reported amount under Section 270A. None of this is worth saving a 20-minute reconciliation.

There's also a softer "e-Verification" route now: the department may simply email you asking to confirm or explain an AIS entry before issuing any formal notice. Respond promptly and most of these close quietly.

Quick tax estimate: plan before you file

Before you submit, you should know your number. Run your reconciled income through our Income Tax Calculator to compare both regimes and see your final liability. If you have HRA, use the HRA Exemption Calculator to lock the exempt portion, and if you want to understand your monthly take-home, the Salary In-Hand Calculator is handy.

Freelancers who invoice with GST should also keep their turnover consistent — the AIS now pulls GST data, so reconcile it using our GST Calculator. And while you're optimising taxes, deductions like 80C investments matter: see what an SIP could grow into with our SIP Calculator or a tax-saving PPF with the PPF Calculator. You can browse every tool on our free calculators page.

Frequently asked questions

Is Form 26AS or AIS more accurate?

Neither is automatically "more accurate" — they're built from data reported by third parties, who occasionally make errors. The AIS is broader, but you should reconcile both against your own records. Where the two disagree, your own bank and broker statements are the deciding evidence.

What should I do if my AIS shows income that isn't mine?

Use the feedback option in the AIS portal and select the appropriate reason, such as "Information relates to other PAN" or "Information is duplicate". Submit it before filing and keep a screenshot. The department records your response and your modified value reflects in the TIS.

Do I have to report savings account interest below ₹10,000?

Yes. You must declare all savings interest as income. Under the old regime you can then claim a deduction up to ₹10,000 under Section 80TTA, which effectively makes it tax-free up to that limit — but the declaration itself is mandatory.

Will a small mismatch of a few hundred rupees trigger a notice?

Tiny rounding differences usually don't, but the system is automated and conservative. It's safer to report the exact figure from your records and reconcile any genuine gap, rather than leaving even small unexplained differences.

The AIS doesn't show TDS my employer deducted. What now?

You cannot claim TDS credit the department can't see. Contact your employer's payroll team and ask them to file or correct the TDS return so it reflects in your 26AS. Filing without it means your refund will be reduced or denied.

How late can reporting entities update my AIS?

Banks, brokers and employers can update data well into June and July, and sometimes later. That's why you should download fresh copies of both statements the same week you file, not weeks earlier.

I'm a freelancer — does the AIS show my full income?

Only the part where TDS was deducted or that was otherwise reported (and GST turnover, if registered). Cash or unreported payments won't appear, but you are still legally required to declare your full income. Reconcile your invoices and bank credits against the AIS as a minimum baseline.

Final word

The era of "file from memory and hope for the best" is over. With the department holding a detailed AIS for every PAN, your job has shifted from reporting income to reconciling it. A disciplined Form 26AS AIS mismatch ITR check — comparing your statements line by line, fixing errors through feedback, and confirming your final tax with a calculator — is the single most effective thing you can do to avoid notices for AY 2026-27.

Spend 30 minutes before you file. Download both statements, tick off each income head, fix what's wrong, and estimate your liability with our Income Tax Calculator. If you'd like to understand more about how we build these tools, visit our about page, or reach out through contact us with feedback. A clean, reconciled return today is the cheapest insurance against a stressful notice tomorrow.

Image credit: Scrabble Series Income Tax — ccPixs.com, via flickr (BY 2.0), sourced from Openverse.