The time to file ITR is coming soon. At this time, it is important that all records are correct and all entries are in place. Many taxpayers face a problem. The problem is a mismatch between the Annual Information Statement (AIS) and Form 16. This can not only delay filing ITR but also cause investigations. In this article, we will tell you how to avoid this problem. We will also explain what Form 16 and AIS are.

What is Form 16 and AIS?

Form 16 is a certificate that shows the TDS deducted from your income. It also contains salary details, TDS amount, and information about different deductions.

On the other hand, Annual Information Statement (AIS) contains all financial transactions done by a taxpayer in a year. This includes dividends, rent, interest, and other income. AIS is issued by the Income Tax Department to help prevent errors in tax filing.

In simple words, Form 16 shows salary details, while AIS shows all financial transactions. It is very important to check both before filing your ITR.

Why is There a Difference Between Form 16 and AIS?

  1. Differences can happen due to:
  2. Delay or wrong reporting by banks
  3. Mistakes in PAN or TAN entries
  4. TDS deducted but not reported to the tax department
  5. Changing jobs several times in a year
  6. Technical problems with the AIS portal
  7. Old data uploaded on the portal

How to Fix the Difference Between Form 16 and AIS

  • The process of filing ITR for 2024-25 has started. It is important to fix any problem before filing. Taxpayers should check carefully.
  • Compare details in AIS and Form 16.
  • Check name, PAN/TAN, total salary, and TDS deducted.
  • If there is a problem with salary or TDS, contact your employer. Ask for a correct Form 16 if needed.
  • Check for missing entries.
  • If the bank has not reported income correctly, inform the bank.
  • Keep payslips, bank statements, and other documents ready.
  • You can also use the AIS feedback option on the Income Tax portal.

Smart Filing Tips

  • Wait till the last day for TDS reporting so all entries are included.
  • Make sure there are no mistakes in Form 16, even small ones.
  • Check TDS, PAN, and TAN details carefully.
  • Match AIS data with your income.
  • Cross-check all documents before filing ITR.