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Annual Information Statement (AIS) was introduced to promote voluntary compliance by enabling seamless prefilling of data; to provide the taxpayer with the complete information and an option to capture online feedback.

It helps the taxpayer to be more vigilant while filing Income tax return and cautions not to hide any income.

As it is in the early stages, there are certain discrepancies in the income mentioned in AIS when compared to the reports of actual sources or the direct data available with the taxpayers.

Two of such discrepancies are observed in "Sale of Securities" data of AIS. 

i) Discrepancy in Buy-back data of shares

ii) Discrepancy in Sale and Cost values of shares

Reasons for discrepancy in data of Buy-back of shares:

• Depository is reporting the number of shares submitted for buyback by the shareholder (SFT-17-LES(M)) and it is considered in AIS as if all the shares were accepted by the company. In actual, company had accepted some shares only.

• Besides the reporting by depository, buying back company is also reporting the buyback transactions (SFT-009) which leads to duplication of successful transactions. Through this report, AIS captures data relating to successful buyback transactions only i.e., data of accepted shares by the company.

• The estimated sale value / cost of acquisition for the debit / credit is determined on the best possible available price with the reporting entity. As a result of which, data on sale/purchase of shares is showing the day’s closing prices rather than prices at which the sale/purchase was executed.

• Cost of acquisition is considered as Nil in AIS for shares acquired through off-market like Initial Public Offer (IPO) / public issue, Rights issue, gifts etc. which leads to discrepancy in Capital gains when calculated with AIS data.

• Sale of securities data may be reflected in the AIS of primary holder only in case of joint account.

• Pledged shares were considered as sale of shares in AIS.

• Duplicate entries when same transactions are reported by different entities.

• Manual / technical errors while reporting the transactions like PAN of other person, transaction date etc.

Income tax portal offers facility to submit feedback for transactions in AIS to improve this system for reducing these discrepancies in future which will also avoid system generated tax notices, if issued, by comparing AIS and tax return data.

Submit the online feedback for AIS by following below steps:

Login to E-Filing portal https://eportal.incometax.gov.in/iec/foservices/#/login

eFile from Menu --> Income Tax Returns --> View Annual Information Statement (AIS)

Click on Annual Information Statement (AIS)

Select appropriate head under Part-B 

(Note: Though Incomes under TDS/TCS will get repeated in SFT / other information, they shall not be considered as duplicate. For clarification you may refer Tax Information Summary (TIS)).

Expand the list of transactions and select "optional" to submit your feedback.

There is also option to submit bulk feedback if we want to submit same feedback for multiple transactions under a particular category.

For sale of securities transactions, scroll right to get the option for submitting the feedback.

• Information is correct

• Income is not taxable

• Income is not fully correct (Not available in bulk feedback)

• Income relates to other PAN / Year

• Information is duplicate / included in other information

• Information is denied

• Transfer is not considered as sale (only sale of securities / Mutual funds)