AIS TIS mismatch is increasingly resulting in income-tax additions and automated notices. In most cases, these mismatches arise due to reporting or timing issues and can be resolved online without resorting to litigation, provided timely and accurate action is taken.
Why AIS TIS Mismatch Arises
- Wrong PAN tagging
- Duplicate reporting
- Timing differences
- Incorrect nature of income
How AIS and TIS Data Is Generated
AIS (Annual Information Statement) and TIS (Taxpayer Information Summary) are compiled from information reported by third parties such as banks, employers, mutual funds, registrars, and other reporting entities. This data is aggregated automatically and reflected against the PAN of the taxpayer.
Since AIS and TIS are information-based summaries, discrepancies may arise due to timing differences, reporting errors, duplication, or incorrect PAN tagging by the reporting entity.
Common Reasons for AIS TIS Mismatch
AIS TIS mismatch generally arises due to one or more of the following reasons:
- Income already offered to tax in earlier years but reflected again
- Gross receipts reported instead of net taxable income
- Duplicate reporting by multiple entities
- Income exempt or not chargeable to tax
- Transactions belonging to another person incorrectly mapped to the PAN
- Timing mismatch between accrual and receipt
It is important to understand that AIS and TIS are not conclusive evidence of income. They are informational tools meant to assist tax administration.
Common Mistakes to Avoid in AIS TIS Mismatch Cases
Taxpayers often worsen AIS TIS mismatch issues by ignoring automated communications or making casual online submissions without documentation. Another common mistake is revising returns unnecessarily when the mismatch is explainable through feedback and reconciliation.
How to Respond to AIS TIS Mismatch Online
The Income-tax Department provides an online mechanism to submit feedback against AIS entries. Taxpayers can mark entries as:
- Information is correct
- Information is partially correct
- Information is incorrect
- Information relates to another PAN
- Information is duplicate or already reported
Proper feedback with supporting explanation often resolves the mismatch without any further action by the department.
Can AIS TIS Mismatch Lead to Scrutiny or Reassessment?
Yes. Unresolved AIS TIS mismatch issues may:
- Trigger CPC adjustments
- Lead to scrutiny selection
- Form the basis of reassessment proceedings
Interaction with CPC Adjustments and Scrutiny
Unresolved AIS TIS mismatch issues may lead to:
- CPC adjustments under section 143(1)
- Selection for scrutiny under section 143(2)
- Queries under section 142(1)
In such cases, a reasoned reply supported by reconciliation and documentation is critical to prevent unwarranted additions.
Whether AIS TIS Mismatch Can Justify Additions
An addition cannot be made merely on the basis of AIS or TIS data unless the Assessing Officer independently examines the material and provides the taxpayer an opportunity to explain.
Courts have consistently held that third-party information alone is insufficient unless corroborated by further evidence and proper enquiry.
Therefore, a mismatch by itself does not automatically result in tax liability.However, a mismatch by itself does not justify an addition unless supported by material evidence.
Incorrect responses may later be relied upon during scrutiny or reassessment proceedings.
- Check each AIS entry
- Submit online feedback
- Reconcile with return
- Keep evidence
When litigation arises
- Feedback ignored
- Mechanical addition
- No opportunity given
When Professional Assistance Is Advisable
Professional review may be advisable where:
- High-value transactions are involved
- Multiple years are affected
- Mismatch is being used to justify reassessment or additions
Timely action and accurate reconciliation are essential to avoid unnecessary tax disputes.
Practical Takeaway
AIS TIS mismatch issues should be addressed at the earliest stage through:
- Online AIS feedback
- Proper reconciliation
- Preservation of evidence
Most disputes can be closed at the pre-litigation stage if handled correctly.
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