Download your client's Annual Information Statement before you open a single broker P&L file. AIS is the Income Tax Department's view of your client's financial year — and if your ITR figures diverge from it, the CPC systems will flag the mismatch automatically. Reconciling AIS first converts a reactive notice-management problem into a proactive filing workflow.
1. What Is the Annual Information Statement?
The Annual Information Statement (AIS) was introduced from AY 2021-22 as a comprehensive replacement for the narrower Form 26AS. It aggregates financial data reported to the Income Tax Department by third parties via the Statement of Financial Transactions (SFT), TDS returns, advance tax records, and more.
For clients with equity, mutual fund, or F&O activity, AIS surfaces the following data points:
- SFT-015: Purchase of listed securities (reported by depositories — NSDL and CDSL)
- SFT-016: Sale of listed securities (reported by depositories)
- SFT-017: Mutual fund redemptions (reported by AMCs and RTAs)
- Dividend income credited to the PAN
- Interest income (bank FDs, savings accounts)
- TDS deducted by payers and deposited against the client's PAN
AIS is available inside the e-filing portal under the e-File menu ("Annual Information Statement" tab) and also at compliance.insight.gov.in. Download it as a PDF for offline reconciliation.
Practical rule: Download AIS for every client at the start of your engagement. Use it as your completeness checklist — it reveals broker accounts, MF platforms, and income sources the client may have forgotten to mention.
2. AIS vs Form 26AS — What Changed
| Feature | Form 26AS | AIS |
|---|---|---|
| TDS / TCS credits | Yes | Yes |
| Advance tax & self-assessment tax | Yes | Yes |
| Securities purchase & sale (SFT) | No | Yes |
| Mutual fund redemptions | No | Yes |
| Dividend income | Partial (TDS only) | Full dividend credited |
| F&O turnover | No | Yes (exchange-reported notional) |
| GST turnover | No | Yes |
| Feedback mechanism | No | Yes — per transaction |
For practical purposes, AIS supersedes Form 26AS for equity and mutual fund filers. The CPC cross-checks Schedule CG and Schedule BP figures against AIS data, not Form 26AS, when processing ITR-2 and ITR-3.
3. Why Mismatches Happen — The Seven Most Common Causes
Understanding the cause of a mismatch is the only way to resolve it correctly. Below are the seven patterns CAs encounter most often in FY 2025-26 filings.
Sale Consideration Difference
AIS shows the gross sale value as reported by the depository based on settlement date. The broker P&L may use trade date and may net off STT or brokerage. For a trade executed on 28 March 2026 settling on 31 March 2026, both dates fall within the same financial year — but a 31 March 2026 trade settling on 1 April 2026 will appear in the next year's AIS. Always compare the underlying trade dates when figures differ by small amounts.
F&O Turnover Computed Differently
AIS reports the gross notional F&O turnover as filed by the exchange via SFT. The ICAI guidance note method computes turnover as the absolute value of net profit and net loss per scrip/contract — a much lower figure for active traders. Both numbers are legitimately different. File using the ICAI method and explain the basis in the ITR's "Additional Information" field. Do not adjust your computation to match the AIS figure.
Mutual Fund Redemption Data from Multiple Sources
AMCs, RTAs (CAMS and KFintech), and broker-MF platforms (Zerodha Coin, Groww, Paytm Money) each report redemptions independently. If a client redeemed from multiple platforms, the same redemption may appear from different reporters, creating apparent duplicates. Check whether the redemption amounts and dates match across entries before treating them as separate transactions. DRIP switches and dividend reinvestment units can also appear as separate transactions in AIS.
Bonus and Rights Shares — Zero-Cost Acquisition
AIS may not correctly reflect the zero acquisition cost of bonus shares. When those shares are later sold, the AIS sale figure appears without a matching cost entry, which can cause apparent P&L distortions. Verify the acquisition date and the original allotment records from the demat statement to establish the correct cost basis.
Joint Demat Account Transactions
AIS aggregates all transactions where the client's PAN appears — including transactions in joint demat accounts where the client is a second or third holder. The full transaction value appears in each co-holder's AIS. Only the first holder's share is typically taxable. If your client is a joint account holder, identify which transactions relate to jointly held securities and report only the proportionate gain.
Timing Difference — Trade Date vs Settlement Date
India's equity markets operate on T+1 settlement. A trade on 31 March 2026 may settle on 1 April 2026. Depositories report on settlement date; brokers typically reflect the trade date in P&L reports. This creates legitimate year-end differences that are not errors — they simply need to be correctly assigned to the right financial year in the ITR computation.
ESOP Exercise Showing as Securities Purchase
When a client exercises ESOPs, the exercise appears as a securities purchase transaction in AIS. However, the perquisite value (market price minus exercise price) is already taxed under salary at the time of exercise. The cost of acquisition for capital gains purposes is the market value on exercise date — not zero. If AIS shows a high-value purchase without a matching cost in the client's broker statement, check whether it is an ESOP exercise and reconcile accordingly.
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4. Step-by-Step Reconciliation Workflow
Follow this five-step process for every client with equity, MF, or F&O activity before filing ITR-2 or ITR-3.
- Download AIS as PDF from compliance.insight.gov.in or the e-filing portal. Also download all broker P&L statements for the financial year (April 2025 to March 2026).
- Extract securities transactions from AIS — filter for SFT-015 (purchases), SFT-016 (sales), and SFT-017 (MF redemptions). Note total sale consideration and total purchase consideration per instrument.
- Compare AIS sale totals against broker P&L totals — instrument by instrument for significant holdings, aggregate comparison for high-volume traders. Identify every line where figures differ by more than rounding.
- Classify each mismatch using the seven causes above. Most mismatches fall into one of these categories. Document your classification and the supporting evidence (contract note, demat statement, allotment letter).
- Resolve or flag each mismatch:
- If AIS is incorrect (wrong value, duplicate, belongs to another PAN): submit feedback in the portal immediately.
- If AIS is correct and your working had an error: correct the computation.
- If the difference is a legitimate timing or methodology difference (F&O turnover, T+1 settlement): document the explanation for the ITR and for any future notice response.
Timing rule: Start this reconciliation at least 10 days before the filing deadline. AIS feedback submissions take time to process. Filing with a documented explanation is far better than filing with an unexamined mismatch.
5. How to Submit AIS Feedback
The AIS portal includes a per-transaction feedback mechanism. Use it whenever AIS contains an incorrect or duplicate entry.
- Log in to incometax.gov.in with the client's PAN credentials.
- Navigate to e-File → Income Tax Return → View AIS, or go directly to compliance.insight.gov.in.
- Locate the specific transaction that is incorrect.
- Click Feedback next to that transaction.
- Select the appropriate feedback type: "Information is incorrect", "Information relates to other person/year", "Information is duplicate", or "Information is denied".
- Enter a brief, specific explanation. Reference the correct figure and the source (broker name, contract note date).
- Submit. Note the submission date and take a screenshot for your records.
CBDT reviews AIS feedback and may update the statement. Do not wait for AIS to be corrected before filing. File the ITR with the correct figure based on your verified computation, and mention the AIS feedback submission in the return if relevant. The submission confirmation is your primary document if a 143(1)(a) intimation arrives later.
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6. The TPVS System — What It Means for FY 2025-26 Filings
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The Income Tax Department's Technology Project for Verification System (TPVS) now auto-generates mismatch intimations by comparing AIS data against filed ITR figures before formal assessment under Section 143(2). For FY 2025-26 filings, CAs should expect TPVS-generated communications at a higher rate than in previous years as the system matures.
A TPVS intimation is not an assessment order — it is an alert asking the taxpayer to explain the discrepancy or file a revised return. Responding requires the same documentation you would have gathered during pre-filing reconciliation. Doing the reconciliation before filing eliminates most TPVS alerts before they are generated.
CPC cross-check logic: Schedule CG total sale consideration in ITR → compared against SFT-016 aggregate in AIS. Schedule BP F&O turnover → compared against exchange-reported SFT turnover. Any material deviation triggers a 143(1)(a) intimation automatically.
7. Filing When the Mismatch Cannot Be Resolved in Time
If the filing deadline of 31 July 2026 is approaching and an AIS mismatch remains unresolved, follow this approach:
- File on time with the correct figure. Use your verified broker P&L and computation as the basis. Do not delay filing to wait for AIS feedback to be processed.
- Document your basis. In the "Additional Information" field in the ITR, state the reason for the difference (e.g., "AIS shows gross notional F&O turnover per exchange SFT; ITR reports ICAI-method turnover of ₹X based on absolute profit/loss per contract").
- Submit AIS feedback simultaneously. Do this on the same day as or before the filing.
- Keep the response kit ready. Compile the broker P&L statement, contract notes or demat statement, the AIS feedback submission confirmation, and a one-page reconciliation note. When the 143(1)(a) intimation arrives, you can respond within days rather than scrambling for documents.
Late fee under Section 234F is ₹5,000 (₹1,000 if total income is ₹5 lakh or below). Filing on time with a documented mismatch explanation is always preferable to filing late with a clean AIS.
See also: ITR Filing Due Dates for FY 2025-26 — All Deadlines in One Place →
8. How FirstReports Helps
FirstReports is built for exactly the reconciliation problem described in this guide. When a client trades across Zerodha, Groww, Angel One, and Upstox in the same financial year, manually aggregating four P&L reports and then cross-checking against AIS is where errors creep in.
The platform accepts broker P&L exports in any format, normalizes every trade to a common schema (trade date, symbol, exchange, segment, buy/sell, quantity, price, charges), and produces a single consolidated STCG / LTCG / F&O statement. That single consolidated figure is what you compare against the AIS aggregate — one comparison, not four. The platform is designed for CAs managing multiple clients, with the first client free to try.
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Frequently Asked Questions
What is the difference between AIS and Form 26AS?
Form 26AS shows TDS and TCS credits, advance tax, and self-assessment tax paid. AIS (Annual Information Statement) is far more comprehensive — it includes all SFT-reported data: securities sale and purchase transactions, dividend income, mutual fund redemptions, interest income, and GST turnover. For equity traders and MF investors, AIS is the document that matters most when reconciling figures for ITR filing.
Where can I download the AIS for my client?
Log in to the e-filing portal at incometax.gov.in using the client's PAN credentials. Navigate to e-File → "Annual Information Statement", or go directly to compliance.insight.gov.in. Download the AIS as a PDF. Download it at the start of the engagement — before you request broker P&L files from the client.
Why does AIS show a different securities sale figure than my broker P&L?
The most common reason is a trade date vs settlement date difference. AIS captures gross sale consideration as reported by the depository (NSDL/CDSL) on settlement date; broker P&L uses trade date and may net off charges. A March 31 trade settling April 1 shifts into the next year's AIS. Additionally, charges deducted by the broker (STT, brokerage) can create small numerical differences even for correctly matched trades.
How do I submit feedback on an incorrect AIS entry?
Open the AIS in the e-filing portal or at compliance.insight.gov.in, locate the transaction, and click Feedback. Select the appropriate reason ("Information is incorrect", "Information is duplicate", etc.) and submit a specific explanation referencing the correct figure and source. Take a screenshot of the submission confirmation — you will need it if a 143(1)(a) intimation arrives.
Will an AIS mismatch automatically trigger a notice?
Yes. The CPC at Bengaluru cross-checks ITR Schedule CG and Schedule BP figures against AIS automatically during processing. Any material mismatch generates an intimation under Section 143(1)(a). The TPVS system adds a further pre-assessment check. Proactive reconciliation before filing — and documentation where differences are legitimate — eliminates most of these notices before they are issued.
How should I handle F&O turnover if the AIS figure is different from my ICAI-method calculation?
AIS reports gross notional F&O turnover as filed by the exchange via SFT. The ICAI guidance note method computes turnover as the absolute value of net profit and net loss per contract — a materially lower figure for active traders. File ITR using the ICAI-method turnover as always, and in the "Additional Information" field, state the computation basis explicitly. Do not adjust your turnover to match the AIS figure.
What should I do if I cannot resolve the AIS mismatch before the 31 July 2026 deadline?
File the ITR on time using the correct figure based on verified broker P&L and your computation. Note the mismatch basis in the "Additional Information" field. Submit AIS feedback on the same day. Keep the broker P&L, contract notes, and AIS feedback confirmation ready. When the 143(1)(a) intimation arrives, respond with these documents. A ₹5,000 late fee under Section 234F applies to belated returns — missing the deadline to chase a clean AIS is never the right trade-off.
Related Reading
STCG and LTCG Calculation for ITR-2 — Step-by-Step (FY 2025-26) →
F&O Trading Tax Treatment — A Complete Guide for CAs (FY 2025-26) →
Capital Loss Set-Off and Carry Forward Rules — India (FY 2025-26) →
ITR Filing Due Dates for FY 2025-26 — All Deadlines in One Place →