Form 16 Vs AIS: How To Match And Fix Discrepancies In Your Income Tax Data

As income tax filing season approaches, it’s important to ensure that all your financial records are in order. One issue that many salaried taxpayers face is a mismatch between the details in Form 16 and the Annual Information Statement (AIS).

These inconsistencies will not only delay your Income Tax Return (ITR) submission but might also attract scrutiny from the tax authorities.

Form 16 is a certificate issued by your employer showing the tax deducted at source (TDS) on your salary. It includes details such as your salary breakup, TDS amount and deductions claimed under various sections.

The AIS is a broader financial statement available on the income tax portal. It contains a range of financial transactions, including salary income, TDS, dividends, interest from savings accounts, stock market activities and high-value transactions.

While Form 16 is limited to salary income, AIS presents a detailed picture of your financial activities for the entire financial year. That's why it’s important to match both before you file your ITR.

Discrepancies between Form 16 and AIS can occur for these reasons:

• Delayed or incorrect reporting by employers or banks.

• Errors in PAN or TAN entries.

• TDS was deducted but not reported to the tax department.

• Multiple employers or job switches during the financial year.

• Technical glitches or outdated data on the AIS portal.

Any mismatch in numbers, transactions, or inaccurate TDS reporting could create confusion. This may even lead to demand notices later.

As the process to file the ITR for FY 2024-25 (AY 2025-26) has already started, it’s important to take corrective measures before filing the income tax return. The salaried taxpayers, whose accounts don’t need a tax audit, can file the ITR till July 31. However, it’s advisable to file the ITR in advance to avoid the last-minute rush.

Begin With Cross-Verification

Start by carefully comparing your Form 16 with the details listed in the AIS. Pay attention to the employer’s name, PAN/TAN, total salary credited and TDS deducted.

Reach Out To The Source

If you find errors related to your salary or TDS, get in touch with your employer. Ask them to revise the TDS return (Form 24Q) and issue a corrected Form 16, if necessary.

Check For Missing Entries

In some cases, the AIS may show incomplete or outdated information. If your bank or financial institution hasn’t reported your income correctly, contact them directly and request a correction.

Keep Records Ready

Maintain payslips, bank statements and any other supporting documents to substantiate your claims.

Update AIS Feedback

You can use the income tax portal’s AIS feedback option to report inaccuracies or flag unrecognised transactions.

• Wait for final TDS reporting: Give it a few weeks after the financial year ends to allow all deductors time to file correct TDS returns.

• Verify Form 16 thoroughly: Ensure it is complete, signed, and reflects accurate figures before relying on it.

• Don’t ignore small errors: Even minor mismatches in TDS or PAN/TAN can lead to complications in tax processing or delay your refund.

• Match other incomes too: Match dividend and interest income listed in AIS with your records.

Overall, matching Form 16 with AIS is essential for smooth and accurate income tax filing. Take the time to cross-check these documents early, raise concerns when needed and maintain an error-free record for ITR filing.