ITR Filing 2025: Why Checking Your Annual Information Statement (AIS) Can Save You a Tax Notice

What is AIS and Why It Matters

The Annual Information Statement (AIS) is a detailed summary of your financial transactions as reported to the Income Tax Department. It includes:

• Salary and pension income
• Interest from savings accounts, fixed deposits, and loans
• Dividend income from shares or mutual funds
• Tax Deducted at Source (TDS)
• Securities transactions such as buying or selling stocks or mutual funds
• Foreign remittances received or sent abroad
• High-value purchases such as property, jewellery, or vehicles reported through Statement of Financial Transactions (SFT)

Unlike Form 26AS, which is limited to TDS and TCS, AIS provides a more comprehensive view of your income and financial activity.

For defence personnel, this includes allowances such as:

• Field area allowance
• Risk or hardship pay
• Transport allowance (TA)
• Dearness allowance (DA)
• Commuted pension (a portion of pension received as a lump sum)

Any mismatch between the AIS and your ITR can trigger a tax notice.

How to Access and Review AIS

The AIS Feedback System allows you to correct errors like:

• Duplicate entries
• Incorrect amounts
• Unrelated transactions

Jargons Decoded

• AIS (Annual Information Statement): A report of all income sources and financial activity
• TIS (Taxpayer Information Summary): A simplified summary derived from the AIS, used to auto-fill your ITR
• Form 26AS: A summary of tax deducted and deposited on your behalf
• SFT (Statement of Financial Transactions): Information on high-value financial activity such as property purchases or mutual fund transactions, submitted by banks or financial institutions

Common Mismatches Found in AIS and How to Fix Them

When your Income Tax Return (ITR) doesn't match with your Annual Information Statement (AIS), it can trigger a tax notice. Below are common mismatches that taxpayers — including many in the Army, Navy, or Air Force — face during filing:

Common AIS Mismatches:

• Interest income not reported: If you earned interest from savings accounts or fixed deposits and didn’t declare it, AIS will still show it.
• Salary discrepancies: AIS may reflect total gross income, while you may have only entered taxable salary.
• Capital gains mismatch: Mutual fund sales or stock redemptions often get recorded in AIS but are missed in ITR.
• Rent or dividend income: These are reported under Statement of Financial Transactions (SFT) and may show up even if you forget to declare them.
• TDS claims: If your AIS shows TDS by an employer or bank but you didn’t claim it, your refund may get delayed.

How to Fix It:

1. Login to the Income Tax portal
2. Go to the AIS tab under ‘Services’
3. Review entries under TDS, SFT, and Other Transactions
4. If anything is incorrect, click ‘Submit Feedback’
5. Choose the relevant category like “Income is not taxable” or “Information is incorrect”
6. Submit. Your AIS will be marked for correction, which ensures your ITR matches official data

Always review AIS before submitting your ITR to avoid unnecessary scrutiny.

AIS vs Form 26AS: What’s the Difference?

Many taxpayers confuse AIS with Form 26AS, but both serve different purposes. Here’s a side-by-side comparison to make it clear:

Tip: Always refer to AIS for a full financial snapshot before filing your return.

Specific AIS Reporting for Defence Personnel: What to Watch Out For

Whether you are an officer or a jawan in the Army, Navy, or Air Force, your AIS may reflect income differently from what you report in your ITR. Knowing what to expect helps you avoid misreporting.

What Defence Personnel Should Check:

• Allowances like field duty, uniform, or high altitude: These are tax-exempt under certain sections but may still appear as part of salary in AIS. Exempt income must be reported correctly in ITR under “Exempt Income” schedules.
• Gratuity or pension after retirement: AIS may reflect full pension received. Check for tax exemptions under Section 10(10A) or 10(10AA) depending on your case.
• Commuted pension: May be partly exempt. Ensure you match the exempt vs taxable portion properly.
• Leave encashment: Often shown in AIS in the year it is paid out. Be sure to check exemption eligibility under Section 10(10AA).
• HRA or rent reimbursement: May be treated as perks by AIS. Ensure your rent receipts and city classification are correctly shown for HRA claims.
• Reimbursements and non-cash perks: Some can show up in AIS even if tax-exempt.

Misreporting or omitting any of these may result in delayed refunds or income tax notices.

Jawans, especially, may not always receive Form 16 in time or may rely on handwritten salary records. In such cases, AIS becomes the most reliable source to verify income.

Don’t guess. If unsure, use CA-assisted tax filing offered by udChalo’s Finserve team to avoid costly mistakes. You can pick plans designed specially for defence professionals: View plans here.

Do's and Don'ts While Filing ITR with AIS

When filing ITR 2025 with AIS, you need to ensure the following: 

Do's

• Review AIS and Form 26AS before filing
• Flag incorrect data and submit feedback promptly
• Match pension, salary, and allowances for accuracy
• Keep payslips, pension slips, and bank statements ready
• Consider CA-assisted plans if you are unsure

Don'ts

• Do not ignore mismatches in AIS
• Do not file your return without checking AIS
• Do not delay feedback submission if errors are found
• Do not assume AIS is always accurate

Use udChalo's CA-Assisted Tax Filing Plans

To make your filing process smooth, udChalo offers CA-Assisted ITR Filing Plans, especially curated for defence families:

• Basic Plan: Suitable for salaried individuals or pensioners without capital gains
• Standard Plan: Includes AIS and Form 26AS cross-verification
• Premium Plan: Ideal for personnel with multiple allowances, exemptions, and income sources

Choose your plan here: udChalo Tax Filing Portal

Final Checklist Before Filing ITR

• Download and review AIS, TIS, and Form 26AS
• Match all entries with your documents
• Raise feedback where needed
• Choose the correct ITR form (e.g. ITR-1 or ITR-2)
• File on time to avoid penalties
• Consider CA-assistance if needed

Let AIS Be Your First Step This ITR Season

A small step like reviewing your AIS can save you hours of paperwork and weeks of stress. It ensures you are reporting the right income, avoids tax notices, and speeds up refunds.

For a smooth filing experience, especially for defence families, explore udChalo's CA-Assisted Tax Filing Plans. Let the experts handle your numbers so you can focus on what matters most.