AIS vs Form 26AS Difference: Which Statement Should You Rely On for Income Tax?
For years, the ritual for filing an Income Tax Return (ITR) in India began with a single, trusted document: Form 26AS. It was widely regarded as the “passbook” for your taxes, faithfully showing every rupee of Tax Deducted at Source (TDS) credited to your PAN.
But recently, the game has changed completely. When you log in to the income tax e-filing portal now, you aren’t just looking at Form 26AS. You are greeted by a much more detailed, and frankly, sometimes intimidating document called the Annual Information Statement (AIS).
Suddenly, taxpayers across India are asking the same questions:
- “Why do I have two different tax reports now?”
- “My Form 26AS shows less income than my AIS—which one is right?”
- “Will I get a tax notice if I ignore the AIS?
What is Form 26AS? (The Old Standard)
To understand the new system, we must first respect the old one. Think of Form 26AS as your “Tax Credit Statement.” For over a decade, this has been the gold standard for verifying that the tax cut from your salary actually reached the government.
Generated under Rule 31AB (linked to Section 203AA of the Income-tax Act, 1961), Form 26AS is strictly structured into parts:
- Part A: Details of Tax Deducted at Source (TDS) by employers, banks (on interest), and contractors.
- Part A1: Details of TDS for Form 15G/15H (where you declared no tax should be cut).
- Part B: Details of Tax Collected at Source (TCS)—common if you bought a car worth over ₹10 Lakhs or bought foreign currency for travel.
- Part C: Details of tax paid directly by you (Advance Tax or Self-Assessment Tax).
- Part D: Details of Refunds you received during the year.
The Limitation: Form 26AS is managed by the TRACES portal. However, it has a major blind spot: it primarily tells you about transactions where tax was cut. If you made a profit on the stock market where no TDS applies, Form 26AS stays silent.
What is AIS (Annual Information Statement)?
Enter the Annual Information Statement (AIS)—the “big brother” of Form 26AS. Introduced to provide a comprehensive view of a taxpayer’s financial life, AIS is not just about tax credits; it is about your financial footprint.
According to Section 285BB of the Income-tax Act, 1961 (introduced by the Finance Act, 2020), the Income Tax Department is now mandated to upload a comprehensive annual statement for every taxpayer. It is divided into two components:
- TIS (Taxpayer Information Summary): A simplified, aggregated summary of your income (e.g., Total Interest, Total Salary). This is what you usually look at first.
- AIS (The Detailed Statement): The raw, line-by-line data of every transaction.
What exactly does AIS contain?
Unlike Form 26AS, AIS pulls data from dozens of “Reporting Entities” like stock exchanges, mutual fund houses, property registrars, and credit card companies. Your AIS reveals:
- Salary and Business Income: As reported by your employer or clients.
- Interest Income: Savings bank interest, RD interest, and FD interest (even if no TDS was cut).
- Dividend Income: Payouts from mutual funds and stocks.
- Securities Transactions: Every single share or mutual fund unit you bought or sold.
- Foreign Remittances: Money sent abroad for education or travel.
- High-Value Transactions: Purchase of property, vehicles, or even high-value credit card bills.
The Income Tax Department uses Artificial Intelligence and Big Data to populate your AIS. It tracks over 46 different types of financial transactions (known as SFT codes)! This means even that small ₹5,000 dividend you forgot about is likely recorded in your AIS, waiting to be matched with your ITR.
Why Did the Government Introduce AIS?
The shift is part of the government’s “Project Insight.” The goal is to widen the tax net and stop revenue leakage. Form 26AS had a weakness: it only showed transactions with TDS. This led to many honest mistakes (and some not-so-honest ones) where taxpayers forgot to report Savings Interest or Capital Gains.
The “Pre-fill” Objective:
The ultimate goal of AIS is to pre-fill your ITR form. The government wants a system where you log in, and your ITR is already 80% filled with data from AIS. You just verify, pay, and submit. This reduces errors and makes the process faster—but it also means you cannot hide income anymore.
Key Differences Between AIS and Form 26AS.
To help you navigate this ITR season without confusion, here is a direct comparison table.
| Feature | Form 26AS (Tax Credit Statement) | AIS (Annual Information Statement) |
|---|---|---|
| Primary Purpose | To show tax credits (TDS/TCS) and tax payments to the government. | To show a 360-degree view of all financial transactions and income sources. |
| Legal Basis | Rule 31AB (Section 203AA). | Section 285BB of the Income-tax Act. |
| Scope of Data | Limited mostly to transactions involving TDS/TCS. | Comprehensive. Includes interest, dividends, stock trades, rent, etc., regardless of TDS. |
| Feedback Option | Cannot correct online. You must contact the deductor to revise their return. | Available. You can submit feedback online immediately if data is wrong. |
| Format | Static Text / PDF. | Dynamic. Available in PDF, CSV, and JSON formats. |
Which Should You Follow While Filing ITR?
This is the most common question we receive at Taxgst.in: If the figures differ, who wins?
The Income Tax Department has provided guidance on this in their technical FAQs. Here is the rule of thumb:
1. For TDS/TCS Credits: Trust Form 26AS.
Form 26AS is still the master for tax credits. While AIS attempts to show TDS details, there can be a time lag in data reflection. If Form 26AS shows a TDS credit of ₹50,000 and AIS shows ₹40,000, you should generally rely on Form 26AS for claiming the credit, as it comes directly from the TRACES database where deductors file their binding returns.
2. For Income Details: Trust AIS.
AIS is superior for reporting income. For filling out “Income from Other Sources” (like interest) or “Capital Gains,” AIS provides the breakdown that Form 26AS completely lacks. Form 26AS might show a consolidated Section 194A entry, but AIS will tell you exactly which bank paid that interest.
Ravi and his wife have a joint Fixed Deposit. The bank reports the full interest income to Ravi’s PAN in the AIS. However, the interest belongs 50% to Ravi and 50% to his wife.What should Ravi do?
In AIS, Ravi should click on the transaction and submit feedback: “Information relates to other PAN” or “Information is not fully correct”. He can then report only his share in the ITR. This feature (Feedback) is only available in AIS, not 26AS.
“In this world, nothing can be said to be certain, except death and taxes.”
— Benjamin Franklin
How to Handle Mismatch Between AIS and Form 26AS.
It is panic-inducing to see a mismatch—like AIS showing a fixed deposit you never opened, or double-counting a salary. Do not worry; the system is designed to handle errors. Follow this visual checklist:
✅ 5-Step Checklist: Resolving Data Mismatches
Step 1: Download Both Documents
Log in to the portal. Go to Services > Annual Information Statement for AIS, and e-File > View Form 26AS for the older form.
Step 2: Compare the TIS
Look at the Taxpayer Information Summary (TIS). This is the summary version. Compare these figures with your actual bank statements and Form 16.
Step 3: Identify the Error Source
Is the income duplicated? Is there a loan entry shown as a deposit? Is the transaction strictly not yours?
Step 4: Submit Feedback 🖱️
Inside the AIS portal, click on the specific incorrect transaction. Select the “Feedback” button (usually an optional column on the right). You can choose options like:
- “Information is correct”
- “Information is not fully correct” (Allows you to edit the amount)
- “Information relates to other PAN/Year”
- “Information is duplicated”
- “Deny the transaction”
Step 5: Wait for TIS Update
Once you submit feedback, the TIS typically updates in real-time or shortly after to reflect your “Modified Value.” Use this corrected value to file your ITR. This serves as your proof that you disagreed with the Department’s data before filing.
Final Thoughts: The Price of Transparency.
The introduction of AIS marks a shift towards total transparency in the Indian economy. While it may feel overwhelming to see every stock trade and interest credit listed in one place, it ultimately protects you from under-reporting income and facing heavy penalties later.
By understanding the AIS vs Form 26AS difference, you move from confusion to confidence. Instead of fearing these documents, use them as tools to ensure your ITR is accurate, compliant, and stress-free.
Frequently Asked Questions (FAQs) on AIS vs Form 26AS.
Q. What is the main difference between AIS and Form 26AS?
Q. Which one should I trust for ITR filing: AIS or Form 26AS?
Q. What should I do if there is a mismatch between AIS and Form 26AS?
Q. Why is my Savings Bank Interest not showing in Form 26AS?
Q. Is Form 26AS discontinued after the launch of AIS?
Q. Can I file my ITR ignoring the AIS data?
Disclaimer: The information provided in this article is for educational purposes only and does not constitute professional financial or legal advice. Tax laws and portals (AIS/TRACES) are subject to updates by the CBDT. Please consult a qualified Chartered Accountant (CA) or tax professional before filing your ITR to ensure compliance with the latest regulations.
🔗 Trusted Authorities & References.
To ensure the accuracy of this article, we have referenced the following official government sources:
- Income Tax Department (Official Portal): AIS FAQs & Guides
- TRACES (TDS Reconciliation Analysis and Correction Enabling System): Form 26AS Information
- Income Tax India (Twitter/X): Updates on Project Insight and SFT Compliance.
Discover more from TaxGst.in
Subscribe to get the latest posts sent to your email.
C.K. Gupta
Hello, I am C.K. Gupta Founder of Taxgst.in, a seasoned finance professional with a Master of Commerce degree and over 20 years of experience in accounting and finance. My extensive career has been dedicated to mastering the intricacies of financial management, tax consultancy, and strategic planning. Throughout my professional journey, I have honed my skills in financial analysis, tax planning, and compliance, ensuring that all practices adhere to the latest financial regulations. My expertise also extends to auditing, where I focus on maintaining accuracy and integrity in financial reporting. I am passionate about using my knowledge to provide insightful and reliable financial advice, helping businesses optimize their financial strategies and achieve their economic goals. At Taxgst.in, I aim to share valuable insights that assist our readers in navigating the complex world of taxes and finance with ease.
