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 have been reading conflicting things online and I would like to understand what Indian law actually says about this, which Act and Section applies, what the realistic timelines and costs are, and what I should be doing right now to protect my position. If the matter can be resolved without litigation I would prefer that route, but I want to know what my rights are before I agree to anything or sign any document.

MyVakeel Legal Desk · Accepted Answer

What should I do if there is a mismatch between my AIS and the income reported in my ITR is governed in India primarily by Income-tax Act, 1961, Section 285BB, Income-tax Act, 1961, Section 139(9) and Income-tax Act, 1961, Section 148. The short answer is set out below, followed by the practical steps most people in this situation need to take. Read it alongside the specific provisions named, because the exact relief available to you turns on the facts you can prove on paper.

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 to do next: 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.

If the other side has already issued a notice, filed a case or set a deadline, treat the matter as time-sensitive — most remedies under Income-tax Act, 1961, Section 285BB carry limitation periods, and a delay you cannot explain weakens an otherwise strong case. 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 this practice area.