AIS Mismatch Notice: Build an Evidence-Based Reply

AIS reports two ₹5 lakh property-related entries while the taxpayer has one transaction. The useful result is a working that explains the facts, the calculation or classification, and the evidence behind the conclusion. This guide shows how to prepare that working and where a reviewer should investigate before accepting the result.

Scope and applicable period

Indian income-tax preparation for FY 2025–26 / AY 2026–27 under the Income-tax Act, 1961. The Income-tax Act, 2025 applies from Tax Year 2026–27; later-period computations require the corresponding provisions and forms.

Verification date: 11 October 2026. Figures and rates identified as assumptions are teaching examples; apply the stated conditions and the actual facts to a real assignment.

The key principle

AIS is an information report, while a notice is a specific request or proceeding. An AIS feedback entry does not necessarily satisfy a separate notice response. Authenticate the communication and identify what facts, transaction and year are being questioned. Establish whether a reported entry is duplicated, attributed to the wrong person, wrong in amount or genuine but omitted.

Worked example

Compare the reporting entities and transaction descriptions before calling the second entry a duplicate. One transaction can generate different legitimate information records. If both truly describe the same fact, provide the contract, payment trail and a mapping table. If the taxpayer omitted a genuine taxable item, assess the permitted correction and payment route rather than labelling it incorrect. Save AIS feedback and the notice response as separate evidence where both are needed.

A practical sequence

Authenticate the communication through official services before responding. Identify the particular AIS entry, source and period.

Compare it with the underlying transaction and existing return treatment. Submit appropriate AIS feedback or the requested compliance response, distinguishing duplication from genuinely unreported income.

Preserve the evidence and follow-up status. Feedback on information does not automatically amend a filed return or discharge a separate notice-response obligation.

Keep gross amounts, taxable amounts and credits distinct

A tax preparation file should explain the movement from source documents to taxable income and then from computed tax to the amount payable or refundable. Gross receipts, bank credits and information-statement values can measure different things. Reconcile them before applying tax rates or claiming credit. Record residential status, income character and the chosen regime where relevant, because these affect treatment. A deduction or withholding certificate establishes one part of the evidence; it does not replace the complete income computation. Maintain a separate list of missing documents and unresolved classification questions.

Evidence checklist

Keep the following records linked to the same entity, period and working version. Identify missing items explicitly; a checked box should mean the document was examined and supports the stated conclusion.

• Authenticated notice and requested information
• AIS entries and reporting-entity details
• Contract and ownership documents
• Bank movement and original return treatment
• Feedback and response submission references

Common mistakes and how to avoid them

• Assuming every repeated amount is a duplicate. Compare the conclusion with the authenticated notice and requested information and resolve any conflicting facts.
• Treating AIS feedback as completion of a notice. Trace the affected item to the contract and ownership documents before finalising the working.
• Admitting an amount without matching the transaction. Use the feedback and response submission references to make the final position and remaining exceptions clear.

Before you finalise

Recheck the example’s assumptions against the actual assignment, resolve the identified exceptions and make the final figure or conclusion traceable to its source. Preserve the reviewed version and the reason for material changes. For this task, the feedback and response submission references should agree with the conclusion presented to the client, reviewer or authority.

Frequently asked question

Can a correct AIS entry still need explanation? Yes. The information may describe gross value or a shared transaction whose tax treatment requires additional facts.

Sources and further reading

• Income Tax Department — AIS and TIS FAQs
• Income Tax Department — rectification user manual

Related guide: Ais tis form26as books reconciliation income tax.