What should I do if there is a mismatch between my AIS and the income reported in my ITR

Question

I noticed my Annual Information Statement shows transactions I did not report or that do not match what I filed in my return. I would rather settle this without going to court if the law allows it, but I need to know my rights before I sign anything. Please tell me what to do first and what document to keep.

MyVakeel Legal Desk · Accepted Answer

Under Indian law, Income-tax Act, 1961, Section 285BB is the starting point for this tax law question. What follows is the position in substance, together with the steps that usually make the difference in practice.

The Annual Information Statement, prescribed under Section 285BB, compiles information reported by banks, mutual funds, registrars, employers and other reporting entities, and mismatches commonly arise from duplicate reporting, incorrect PAN quoting by the reporting entity, or genuinely omitted income.

The AIS portal itself allows the taxpayer to submit online feedback disputing an entry as incorrect, duplicate, or not belonging to them, and this feedback is reflected as a modified value without altering the original reported information, creating a documented trail for future reference.

If genuine income was omitted in the filed return because of an AIS discrepancy discovered later, the taxpayer should file a revised return under Section 139(5) if within time, or an updated return under Section 139(8A), rather than waiting for the department to issue a notice under Section 148 for escaped income.

Persistent unexplained mismatches, especially involving high-value transactions, increase the risk of a reassessment notice under Section 148, and the reply to such notices should specifically address each disputed AIS entry with supporting bank statements and contract notes.

What this means for you: 1) Download the AIS and Taxpayer Information Summary from the compliance portal; 2) Submit online feedback for any incorrect or duplicate entries; 3) File a revised or updated return to include any genuinely omitted income; 4) Preserve correspondence and feedback acknowledgements for future scrutiny.

Where the facts are disputed, what usually decides a ais mismatch matter is the paper trail — dated complaints, acknowledgments and written replies under Income-tax Act, 1961, Section 285BB. You can post the details on the MyVakeel forum for a practising advocate to review, or book a paid consultation with a Bar Council verified lawyer in tax law.