AIS Mismatch for NRIs: What to Do If Income Shows Incorrectly

A client of ours in Sharjah opened his AIS last June expecting a clean statement.

Instead, he found Rs. 11 lakh in interest income he did not recognise. His NRO account showed the correct Rs. 3.2 lakh. The extra Rs. 7.8 lakh belonged to his father - same bank, similar name, wrong PAN mapping.

He almost filed a revised return declaring income that was never his.

We stopped him. We walked him through the feedback process. The entry was corrected. He filed clean.

AIS errors are more common than most NRIs realise. The system is largely automated, and automated systems make mistakes. What matters is knowing exactly what to do when yours has one.

Why Does AIS Show Incorrect Income for NRIs?

The AIS is built by pulling data from dozens of reporting entities: banks, mutual fund registrars, stock exchanges, property registrars, and employers. Each entity uploads data independently. Errors enter at the source, not at the tax department level.

For NRIs specifically, incorrect entries typically happen for one of these reasons.

Wrong PAN mapping. Banks file TDS data by PAN. One incorrect digit sends a transaction into the wrong person's AIS. NRIs with common names, joint accounts, or ageing parents at the same bank are especially vulnerable to this.

Gross NRO interest shown instead of net. Banks report the full pre-TDS interest earned on NRO accounts. TDS at 30% has already been deducted, but the AIS figure is gross.

Many NRIs read this as additional unexplained income. It is not. But you must still declare gross income in the ITR and claim the TDS as a credit separately.

NRE interest appearing as taxable income. NRE fixed deposit interest is exempt under Section 10(4) of the Income Tax Act. The bank still reports it, and it still appears in AIS.

AIS does not auto-tag it as exempt. You must declare it as exempt income yourself in the ITR. (Source: Income Tax Department of India)

Joint property TDS mapped entirely to one co-owner. If you sold a property jointly, the buyer may have filed TDS against your PAN alone for the full sale value. Your AIS then shows the entire transaction as yours. Only your proportionate share should be declared.

Duplicate reporting from a revised TDS return. When a payer - your bank, broker, or employer - files a corrected TDS return, both the original and revised entries can appear simultaneously until the system reconciles them.

Stale data from a payer's delayed correction. If a bank revised their TDS filing for a prior quarter, the correction may not reflect immediately in your AIS. You see the old, incorrect figure. (Source: Patron Accounting, April 2026)

Old LRS TCS from your resident days. If you became an NRI mid-year and made LRS remittances earlier as a resident, the TCS collected on those remittances shows in your AIS. If not claimed as a credit in the ITR, the gap looks like missing income to the automated system.

👉 Tip: Before flagging any AIS entry as an error, trace it to a source document first. Bank certificate, broker statement, AMC report, Form 16B. An entry that looks wrong is sometimes just a format difference between gross and net figures.

The Six Types of AIS Mismatch NRIs Face

Not all mismatches are equal. Some require only an ITR correction. Others require AIS feedback. Some require both.

Identifying the category your mismatch belongs to tells you whether the fix lives in AIS, in your ITR, or in both.

Step One: Confirm the Mismatch Is Real

Pull out your own records before doing anything else.

Gather your NRO and NRE bank interest certificates, Form 26AS, broker P&L statement, AMC capital gains statement, and any property sale documents.

Map every AIS entry to a source document. If an entry matches a document but the figure differs, that is an inflation or duplicate error. If an entry has no matching document at all, that is likely a wrong PAN mapping.

Do not rely on memory alone. NRIs with accounts across multiple Indian banks sometimes genuinely forget small interest credits from savings accounts or dormant FDs.

For the full reconciliation process before filing, read our guide on how NRIs can check AIS before filing ITR.

Step Two: Use the AIS Feedback Mechanism

The Income Tax Department built a feedback tool for exactly this purpose.

Log in at incometax.gov.in. Go to Services, then Annual Information Statement. Open the relevant financial year. Find the incorrect entry and click the feedback option next to it.

There are six feedback options available:

Information is correct - confirms accurate entries

Information is not fully correct - use this when the amount is wrong but the transaction is yours; enter the correct value

Information is not correct - use this when the transaction is wrongly attributed to you entirely

Information is duplicate - use this when the same transaction appears more than once

Information relates to other PAN / Year - use this when the transaction belongs to someone else or to a different year

Information is denied - use this when you have no knowledge of the transaction and cannot confirm or deny it

After you submit feedback, the reporting entity has 30 days to respond. If they accept it, the TIS (Taxpayer Information Summary) auto-updates with the corrected value. That corrected value is what pre-fills your ITR. (Source: Patron Accounting, April 2026)

There is no limit on how many feedback submissions you can make. (Source: Income Tax Department of India)

One point that trips up many NRIs: submitting AIS feedback does not automatically fix your ITR. If you have already filed using the incorrect figure, you must also revise the return separately. If you have not filed yet, either wait for TIS to update or file with your correct documented figures without waiting.

👉 Tip: Screenshot every feedback submission you make, including the date and reason selected. If a query arrives months later, this is your first line of documentation.

Step Three: Decide Whether to File, Wait, or Revise

Here is the decision framework depending on where you are in the filing process.

If you have not yet filed your ITR:

Check whether the AIS correction will come through before the deadline. If feedback is accepted quickly and TIS updates in time, file with the corrected figures.

If the deadline is close and TIS has not updated, file your ITR using your own correct documented figures. Do not inflate your declared income just to match an incorrect AIS.

Filing with accurate figures supported by documents is always the right approach, even if the AIS has not yet been corrected. (Source: Patron Accounting, April 2026)

If you have already filed your ITR:

If you filed using an inflated AIS figure by mistake, you have overpaid tax. File a revised return under Section 139(5) with the correct income. Revised returns can be filed up to December 31 of the assessment year.

If the AIS showed income you genuinely missed and the AIS is correct, file a revised return to include that income. Do not wait for a formal notice.

If you received a mismatch SMS or email from CBDT:

These informational messages indicate the department has flagged a gap between your AIS and your filed ITR. They are not formal notices but treating them as optional is a mistake.

Log in to the portal, compare your AIS against your ITR, and act accordingly. If the AIS is right and your ITR is wrong, revise before December 31.

If the AIS is wrong, submit feedback and keep documentation ready. (Source: Arthgyaan, December 2025; Business Standard, December 2025)

Step Four: Responding to a Formal Notice

If the mismatch has escalated to a formal notice, the approach changes.

The most common notice sections for AIS-related issues are listed below.

Section 143(1): An intimation, not a full scrutiny notice. It flags computational mismatches and may raise a demand or adjust a refund. File a rectification request online under Section 154 if the demand is based on incorrect AIS data.

Section 139(9): A defective return notice. Your return was found incomplete or internally inconsistent. You have 15 days to correct and resubmit. This window is strict.

Section 142(1): A request for documents or clarification. Respond through the e-Proceedings section of the portal with your bank certificates, Form 26AS, AIS feedback records, and other supporting documents.

Section 143(2): A scrutiny notice. This means your case has been selected for detailed review. Respond carefully and on time. If you are abroad, appoint an authorised representative in India to handle portal submissions. (Source: Taxscan, February 2026)

For every notice: log in to incometax.gov.in, go to e-File, then e-Proceedings, locate the notice, note the response deadline, and reply with full documentation.

Ignoring a notice is the single most costly mistake an NRI can make. The department treats silence as non-compliance and may proceed to ex-parte assessment under Section 144.

👉 Tip: Every income tax notice carries a response deadline. Note it the day you receive it. Indian tax proceedings are strictly time-bound, and extensions are rarely granted.

NRI-Specific AIS Errors and How to Handle Each

NRO interest inflated

Your NRO FD interest certificate shows Rs. 1.8 lakh. Your AIS shows Rs. 3.6 lakh.

What happened: The bank filed a revised TDS return and both the original and revised entries are showing simultaneously.

What to do: Flag the duplicate in AIS feedback. Declare Rs. 1.8 lakh in your ITR. Keep the bank certificate ready if a query arrives.

NRE interest appearing without exemption

Your AIS shows Rs. 2.4 lakh NRE FD interest under income.

What happened: The bank reported correctly. AIS does not tag exempt income automatically.

What to do: Do not submit feedback as the entry is factually accurate. Declare Rs. 2.4 lakh as exempt income under Section 10(4) in your ITR. For how NRI exemptions work in the return, see our guide on NRI exemptions and deductions.

Property sale showing full amount for a jointly held property

You sold a property jointly with your spouse. The buyer deducted TDS on the full Rs. 80 lakh and mapped it to your PAN alone. Your AIS shows Rs. 80 lakh.

What happened: The buyer filed Form 26QB using only your PAN.

What to do: Flag in AIS feedback as "Information is not fully correct" and enter Rs. 40 lakh as the correct figure. Declare Rs. 40 lakh as your share of the capital gain. Your spouse must independently declare their share.

For how property income is taxed for NRIs, see tax on NRI investments in India.

Unknown dividend entry

AIS shows Rs. 18,000 in dividend income from a company you do not recognise.

What to do: Check your demat account statement. If the dividend is yours from a forgotten holding, declare it. If your demat confirms no such position, flag as "Information relates to other PAN" with supporting documentation.

LRS TCS not claimed

You moved to the UAE in November 2024. In August 2024, while still a resident, you remitted Rs. 12 lakh abroad. TCS was collected on Rs. 2 lakh, the amount above the Rs. 10 lakh threshold. That TCS appears in your AIS.

What to do: No feedback needed as the entry is correct. File a revised ITR claiming the TCS as a tax credit. Read more on how to avoid double taxation as an NRI and what credits apply under DTAA.

What Happens If You Do Nothing

The department's automated processing under Section 143(1) runs after you file. It compares your declared income against AIS data.

Any unexplained gap, whether Rs. 5,000 in savings interest or Rs. 5 lakh in a missed mutual fund redemption, generates a flag.

That flag produces an intimation with a demand. The demand carries interest under Sections 234A, 234B, or 234C depending on the nature of the shortfall.

If the gap is large or the pattern looks systematic, it escalates to scrutiny under Section 143(2).

Refunds are also held. If your ITR shows a refund but AIS has unexplained income, the refund will not process until the mismatch is resolved. (Source: efiletax.in, May 2025)

And if you receive an informational CBDT SMS and ignore it, that inaction itself becomes part of the record when the case is reviewed.

The resolution is almost always simpler than the consequence of doing nothing.

Read our guide on common NRI tax filing mistakes to see the full range of gaps that lead to notices.

👉 Tip: If the revision deadline is close and your AIS correction has not yet reflected, file your correct return with supporting documents attached. Do not miss the window waiting for AIS to update.

A Decision Table for Every AIS Mismatch Scenario

Keeping Your AIS Clean Going Forward

Most AIS errors originate with the reporting entity. The simplest prevention is making sure your PAN is correctly recorded everywhere.

Update your PAN with every Indian bank account you hold, including dormant ones. Read our guide on linking Aadhaar and PAN with your NRI bank account to keep records aligned across institutions.

If you hold joint accounts with a parent or spouse, confirm that each co-holder's PAN is independently and correctly recorded for TDS filing purposes.

For property transactions, brief your buyer's CA before the sale closes. Ensure Form 26QB reflects your PAN with the proportionate amount, not the full sale value, in joint ownership situations.

Review your AIS early in each filing season, not the week before the deadline. Early discovery gives you time to submit feedback, wait for TIS to update, and file a clean return. For the full pre-filing process, see our guide on how to file ITR online as an NRI.

Also keep an eye on the NRI ITR filing deadline each year. Deadlines occasionally shift and missing the revision window is entirely avoidable.

If you are unclear whether you need to file at all in a given year, read NRI tax filing with no income in India for guidance on that specific situation.

Need Help Resolving an AIS Mismatch or Filing Your NRI Return?

AIS mismatches are manageable when caught early and handled in the right order.

At Belong, our NRI tax filing service covers AIS review, mismatch identification, feedback submission, and full ITR preparation. If you have received a notice or are not confident your AIS is clean, our team can work through it with you.

Pricing by complexity:

Simple returns: Rs. 2,500 Standard returns (NRO income, capital gains, NRE exemptions): Rs. 4,500 to Rs. 5,500 Complex returns (property transactions, DTAA claims, multiple income sources): Rs. 7,500 to Rs. 8,500

Once your taxes are in order, put your India-parked money to work. Compare NRE FD rates on our NRI FD Comparison Tool. Explore USD-denominated investing through the GIFT City Mutual Funds tool. Check alternative investment options through the GIFT City AIF Explorer.

Track the GIFT Nifty live and monitor currency movement on the Rupee vs Dollar Tracker.

Fund-specific options: DSP Global Equity Fund, Tata India Dynamic Equity Fund, Edelweiss Greater China Equity Fund, Sundaram India Mid Cap Fund.

Explore GIFT City IPO opportunities, our IPO products page, and the full Belong mutual funds platform.

Use the NRI Compliance Compass for a structured view of your compliance position. Confirm your residential status for the year using the NRI Residential Status Calculator before you file.

Frequently Asked Questions

Q: Should I file my ITR using the AIS figure even if I know it is wrong?

No. Always file based on your correct, documented income. If the AIS is inflated, submit feedback and file with the correct figure supported by bank certificates or other documents. Filing with an inflated AIS figure means overpaying tax, and it does not protect you if the underlying data is inaccurate. (Source: Patron Accounting, April 2026)

Q: How long does AIS feedback correction take to reflect?

The reporting entity has 30 days to respond after you submit feedback. If accepted, TIS auto-updates. Large banks tend to respond faster. Corrections involving property registrars or smaller entities can take longer. Do not wait past the filing deadline. File with correct figures if the update has not come through in time. (Source: Patron Accounting, April 2026)

Q: I received an SMS about a mismatch. Is that a formal notice?

No. CBDT compliance campaign messages are informational nudges, not statutory notices. But ignoring them is unwise. They indicate the department has flagged your return and a formal notice may follow if the mismatch remains unresolved. Log in and check your AIS against your ITR. (Source: Business Standard, December 2025)

Q: Can I respond to a tax notice from outside India?

Yes. All responses are submitted online through the e-Proceedings section of incometax.gov.in. If the matter involves a Section 143(2) scrutiny, consider appointing an authorised representative in India to handle submissions on your behalf.

Q: My AIS shows last year's income again in this year's statement. What do I do?

This is a stale data issue, typically from a payer who resubmitted old data in a revised TDS return. Submit feedback selecting "Information relates to other PAN / Year" and specify the correct year. Document the submission carefully.

Q: Does correcting AIS automatically revise my ITR?

No. AIS feedback and ITR filing are separate processes. Correcting AIS updates the TIS and changes the pre-fill data for future filings. But if you have already submitted an ITR, you must independently file a revised return under Section 139(5) to reflect the corrected figures.

Disclaimer: This article is for informational purposes only and does not constitute tax or legal advice. Tax laws and portal procedures can change. Please consult a qualified tax advisor for decisions specific to your situation.