New Information in Form 26AS

New Information in Form 26AS

Form 26AS is no longer just a tax-credit certificate you download to verify TDS before filing. For FY 2026-27 (AY 2027-28), it operates as one layer in a three-statement ecosystem — alongside the Annual Information Statement (AIS) and Taxpayer Information Summary (TIS) — that gives the Income Tax Department a near-complete financial picture of every PAN holder. High-value cash deposits, property transactions, mutual fund redemptions, credit card spends, LRS remittances, GST turnover, dividend income, and crypto gains now all flow into these statements automatically. Reconciling them before you file is not optional — it is your first line of defence against mismatch notices, CPC adjustments, and reassessment.

What Form 26AS Contains in FY 2026-27

Form 26AS is issued under Section 203AA of the Income-tax Act, 1961, and is accessible through the income-tax e-filing portal at www.incometax.gov.in → e-File → Income Tax Returns → View Form 26AS. Think of it as the consolidated tax-credit document that both you and the department use to confirm what has already been credited or reported against your PAN.

The seven parts of Form 26AS — and what each shows:

• Part A — TDS: Every deductor who names your PAN in a TDS return contributes a line here — employer salary TDS under Section 192, bank interest TDS under Section 194A, professional fees under Section 194J, rent under Section 194-IB, and so on.
• Part B — TCS: Seller-side collections on motor vehicles above Rs. 10 lakh (Section 206C), overseas LRS remittances (Section 206C(1G)), and sale of goods above Rs. 50 lakh (Section 206C(1H)).
• Part C — Self-Assessment Tax and Advance Tax: Challan-level details of every direct payment made through Challan 280 on the NSDL/Protean portal.
• Part D — Refunds: Amount, assessment year, and date of any refund issued to you.
• Part E — SFT Transactions: High-value transactions reported under Section 285BA — historically listed here, now subsumed into AIS but still summarised in this part.
• Part F — TDS on Immovable Property under Section 194-IA: TDS deducted by the buyer and deposited via Form 26QB appears here for the seller; the buyer's TAN is listed so you can trace the deduction.
• Part G — TDS Defaults: Processing flags from TDS statement scrutiny — short-deduction notices and defaults that may affect your credit eligibility.

> Watch Part G closely. If a deductor is shown in default, the TDS credit may be withheld even if the deductor actually deducted and deposited the amount. Follow up with the deductor to file a TDS correction statement; do not assume the credit will flow automatically.

The AIS and TIS: The Intelligence Layer Above Form 26AS

The Annual Information Statement (AIS), introduced under Section 285BB with effect from November 2021, is where the real surveillance sits. It aggregates data from dozens of reporting entities — far beyond what Form 26AS captures — and presents it across ten broad information categories: TDS/TCS, SFT (high-value transactions), tax payments, demands and refunds, other information (foreign assets, GST turnover), purchase and sale of immovable property, interest income, dividend income, and securities or mutual fund transactions.

The Taxpayer Information Summary (TIS) sits one level above AIS. It collapses AIS data category-wise into three values:

• Reported value — what the reporting entity filed
• Modified value — adjusted after your AIS feedback
• Derived value — the system's best estimate of what you should declare in your ITR

The ITR pre-fill function draws directly from TIS derived values. This means an uncorrected AIS error propagates automatically into your draft return. Correcting data at the AIS level before you open the pre-fill is the single most effective way to avoid filing a wrong return.

The data pipeline is: Reporting entities → Form 61A / TDS returns → AIS (raw data) → TIS (aggregated, post-feedback) → ITR pre-fill.

Specified Financial Transactions (SFT): The Engine That Feeds AIS

Reporting under Section 285BA read with Rule 114E is the mechanism through which banks, mutual funds, sub-registrars, depositories, stock exchanges, and others send high-value transaction data into AIS. Every reporting entity files Form 61A annually. The due date for FY 2026-27 SFT data is 31 May 2027 — which is why an AIS review in April may still be incomplete.

SFT thresholds under Rule 114E (aggregate per PAN per FY):

> Critical distinction: These are aggregate per person per FY — not per transaction. Four FD renewals of Rs. 3 lakh each total Rs. 12 lakh and cross the reporting threshold. A single Rs. 8 lakh FD does not — but four such deposits in the same year do.

New Data Flows Added in Recent Cycles

Beyond the original SFT categories, AIS for FY 2026-27 captures several additional streams that many taxpayers underestimate or miss entirely.

Foreign Remittances under LRS — Section 206C(1G): Authorised dealer banks deduct TCS at 20% on LRS remittances above Rs. 7 lakh per FY (for purposes other than medical treatment or overseas education). The remittance amount and TCS collected appear in both Form 26AS Part B and AIS. If you remitted Rs. 15 lakh for an overseas holiday or gifting, AIS reflects this; your ITR must account for the TCS credit under Schedule TCS.

GST Turnover from GSTN: GSTN shares business turnover data with the department. If your GSTR-1 and GSTR-3B returns for FY 2026-27 aggregate to Rs. 2.8 crore, AIS will reflect a turnover signal of approximately that figure. A material, unexplained gap between AIS-indicated GST turnover and ITR-declared revenue is one of the most consistent triggers for Section 142(1) inquiry notices to business owners and professionals.

Virtual Digital Assets (VDA / Crypto) — Section 194S: Exchanges registered in India deduct TDS at 1% on payments for the transfer of virtual digital assets above Rs. 50,000 per FY (Rs. 10,000 for specified persons). Both the consideration received and TDS deducted appear in AIS. Since Section 115BBH imposes 30% flat tax on VDA gains — without set-off against losses on other VDA transactions, and without deduction for expenses other than cost of acquisition — every on-exchange transaction is now visible to the department.

Dividend Income: Post the abolition of the Dividend Distribution Tax from FY 2020-21, dividends are fully taxable in shareholders' hands. Companies and mutual funds report aggregate dividend payments per PAN. AIS shows this income; the department cross-checks it with Schedule OS in your ITR.

Interest Income — All Sources: Banks, post offices, NBFCs, and corporate bond issuers report interest paid. AIS often captures interest on auto-renewed FDs on an accrual basis, creating mismatches with taxpayers who track on a receipt basis. An FD of Rs. 20 lakh at 7% earning Rs. 1,40,000 for the full year will appear in AIS; if your books recorded only Rs. 70,000 (six months' accrual), a Rs. 70,000 mismatch will appear in Schedule OS at the CPC.

Worked Example: When Three Data Pipelines Converge on One Transaction

Scenario: Rajan, a partner in an LLP, sells a flat in Bengaluru for Rs. 85 lakh in December 2026. He originally purchased it in FY 2010-11 for Rs. 22 lakh.

What gets reported — and where:

1. Sub-registrar files Form 61A (SFT) by 31 May 2027: sale consideration Rs. 85 lakh → appears in Rajan's AIS under "Sale of immovable property."

1. Buyer deducts TDS under Section 194-IA at 1% on Rs. 85 lakh = Rs. 85,000. Buyer files Form 26QB by 31 January 2027 (within 30 days of end of December 2026). Rs. 85,000 appears in Rajan's Form 26AS Part F.

1. AIS therefore shows: sale consideration Rs. 85 lakh + TDS credit Rs. 85,000. These are two independent data points from two different sources, both pointing at Rajan's PAN.

Rajan's LTCG calculation:

• Cost of acquisition: Rs. 22 lakh (FY 2010-11; CII = 167)
• CII for FY 2026-27 as notified by CBDT — for illustration, assume 395
• Indexed cost = Rs. 22 lakh × (395 ÷ 167) = Rs. 52.01 lakh (approx.)
• LTCG = Rs. 85 lakh − Rs. 52.01 lakh = Rs. 32.99 lakh
• Tax option (for property acquired before 23 July 2024): choose more favourable between 20% with indexation or 12.5% without indexation
• With indexation (20%): Rs. 32.99 lakh × 20% = Rs. 6.60 lakh tax
• Without indexation (12.5%): Rs. 85 lakh − Rs. 22 lakh = Rs. 63 lakh × 12.5% = Rs. 7.875 lakh tax
• Rajan chooses with indexation → tax = Rs. 6.60 lakh, against which Rs. 85,000 TDS is already credited → net liability Rs. 5.75 lakh

What happens if Rajan does not report this gain: CPC sees AIS sale consideration Rs. 85 lakh, ITR Schedule CG = nil → automatic Section 143(1)(a) adjustment or Section 148A notice. If Rajan files an updated return under Section 139(8A) within 12 months of the end of AY 2027-28 (i.e., by 31 March 2029), additional tax under Section 140B = 25% of (tax + interest). On tax of Rs. 6.60 lakh plus say Rs. 66,000 interest, the additional surcharge alone = Rs. 1.815 lakh. Filing voluntarily before the 31 July 2027 due date costs nothing extra.

The AIS Feedback Workflow: A Step-by-Step Process

When AIS shows an incorrect or duplicate entry, you must formally dispute it — not ignore it and hope the ITR passes through CPC unnoticed.

1. Log in to www.incometax.gov.in → Services → Annual Information Statement (AIS).
2. Select FY 2026-27 from the dropdown.
3. Navigate to the AIS tab (not TIS — TIS is read-only). Browse by information category.
4. Click the specific transaction. You will see the reporting entity name, reported value, and any previously submitted feedback.
5. Click "Feedback" → choose the appropriate response code:
6. Information is correct — you accept the entry as reported.
7. Information is not fully correct — amount is partly wrong; enter the corrected figure.
8. Information relates to other PAN or year — transaction belongs to another person or financial year.
9. Information is duplicate / included in another information — same transaction reported twice.
10. Information is denied — you have no knowledge of this transaction.
11. Add a brief note in the remarks field: e.g., "Bank certificate no. XYZ dated 10 April 2027 shows interest of Rs. 48,200, not Rs. 94,000 as reported. Difference represents FY 2025-26 accrual incorrectly shifted to FY 2026-27."
12. Submit. Note the feedback acknowledgement number — save it with your tax file.
13. The portal forwards your feedback to the reporting entity, which can accept or reject the dispute. If accepted, the modified value in AIS updates, TIS derived value adjusts, and the ITR pre-fill reflects the correction.
14. Revisit AIS two to three weeks after submission to confirm whether the reporting entity responded.

> If you must file before the feedback is resolved: Report the correct value in your ITR, note the discrepancy in your tax file, and retain the acknowledgement number as documented evidence that you disputed the incorrect data in good faith.

Common Mistakes Taxpayers Make — and How to Fix Them

1. Reviewing AIS only once, in April. SFT data for FY 2026-27 can be filed by reporting entities up to 31 May 2027. An April review misses late filers. Run a second AIS check in late June — after the SFT deadline — before you draft the ITR.

2. Ignoring accrued interest on auto-renewed FDs. Banks report interest on an accrual basis; many taxpayers track on receipt. A two-year FD of Rs. 15 lakh at 6.5% = Rs. 97,500 annual interest reported in AIS each FY. If you recorded Rs. 48,750 (six months), expect a Rs. 48,750 Schedule OS mismatch.

3. Accepting ITR pre-fill without cross-checking TIS. Pre-fill draws from TIS derived values. If TIS has not yet absorbed your AIS feedback corrections, the pre-filled return will carry the original incorrect figure. Never accept pre-fill as final without comparing it to your own reconciliation sheet.

4. Not reconciling GST turnover against ITR revenue. Prepare a written reconciliation note: GSTR-1 taxable supply + GSTR-1 exempt supply ± timing differences ± RCM ± advances = ITR turnover. Keep it ready before filing; the department may ask for it via Section 142(1).

5. Missing Form 16A vs. Part A discrepancies. A deductor who files TDS returns with the wrong PAN or TAN creates a credit shortfall in your Part A. Cross-check every Form 16A entry against Part A before filing. If a deductor has deposited TDS but mapped it wrongly, request a TDS correction statement (Form 26A / 27A process) before your ITR due date.

6. Overlooking Part G TDS defaults. Part G flags deductors in short-deduction or non-deposit status. Even if the TDS was deducted from your payment, an unresolved Part G entry may delay your refund or reduce your credit. Follow up with the deductor to rectify the TDS statement (Form 24Q/26Q correction).

7. Reporting only exchange-reported VDA gains. Section 194S TDS only covers regulated exchanges. Peer-to-peer crypto transactions, offshore exchange trades, and gains from non-custodial wallets are not in AIS — but they are still taxable under Section 115BBH. Treating AIS silence as a safe harbour is a compliance risk that banking trails can expose.

How Mismatches Trigger Notices — and What to Do Next

The Centralised Processing Centre (CPC) in Bengaluru runs automated comparisons between your ITR and AIS/TIS. There are three escalation paths:

Section 143(1)(a) intimation: CPC proposes an arithmetic or mismatch adjustment — for example, adding AIS-reported dividend of Rs. 1,20,000 not declared in Schedule OS. You have 30 days from the intimation date to respond through e-Proceedings → Pending Actions on the portal. Accept the adjustment and pay the differential tax with interest, or reject it with documentary evidence.

Section 142(1) notice: If the mismatch involves larger amounts or unexplained high-value transactions, an Assessing Officer issues a notice calling for return filing, documents, or a personal appearance. Respond within the time specified in the notice (typically 15 days, extendable). Prepare a transaction-level reconciliation covering every AIS line item.

Section 148A/148 (reassessment): For significant under-reporting detected from AIS data in prior years, the AO issues a show-cause notice under Section 148A and, if satisfied, a reopening notice under Section 148. The time limit is three years from the end of the relevant AY for escaped income below Rs. 50 lakh, and ten years if it exceeds Rs. 50 lakh — meaning AIS data collected today can surface in a reopening as late as FY 2036-37 for large omissions.

Timing Your Review: A Three-Stage Pre-Filing Ritual

If AIS updates materially after you file:

• Revised return under Section 139(5): Available until 31 December 2027 for AY 2027-28, provided the original return was filed before the due date. No additional tax — only standard interest under Sections 234A/B/C if applicable.
• Updated return under Section 139(8A): Available for 24 months from the end of AY (i.e., until 31 March 2030), subject to additional tax under Section 140B: 25% of (tax + interest) if filed within the first 12 months after the AY ends; 50% if filed in months 13 through 24.

Key Takeaways

• Form 26AS, AIS, and TIS are three distinct but linked statements. Form 26AS covers tax credits; AIS covers all financial transactions reported to the department; TIS summarises AIS and feeds the ITR pre-fill. Understand what each shows before touching your return.
• SFT thresholds under Rule 114E start at Rs. 1 lakh (credit card cash payments) — not Rs. 10 lakh. Even relatively modest high-value patterns aggregate into reportable amounts across a financial year.
• AIS now captures GST turnover (from GSTN), VDA exchange transactions (Section 194S), LRS remittances (Section 206C(1G)), dividend, interest, and foreign asset data. Under-reporting is significantly harder to sustain undetected than it was before FY 2021-22.
• Submit AIS feedback for every incorrect or duplicate entry — the feedback acknowledgement number is your documented, time-stamped proof of good-faith dispute; it matters in proceedings.
• Run your AIS review at three stages: April (initial), June (post-SFT deadline), and July (final pre-filing) — not once and not after you file.
• A mismatch can escalate from a Section 143(1)(a) intimation to a Section 148 reassessment depending on the quantum and pattern — the window for voluntary correction closes faster than most taxpayers realise.
• An updated return under Section 139(8A) costs 25–50% in additional tax — far less than the combination of penalty under Section 270A (50–200% of under-reported tax) and prosecution risk that can follow an unaddressed mismatch.