Direct Answer
If AIS shows higher income, identify whether the difference is due to TDS deducted (AIS shows gross, bank shows net), timing differences (March invoices paid in April), or incorrect reporting by the deductor. Submit feedback on the AIS portal if the entry is genuinely incorrect.
Gross vs. Net Reporting
The most common reason for this mismatch is that deductors report the gross invoice value to the Income Tax Department, while you receive the net amount after TDS. Always declare the gross amount in your ITR and claim the TDS credit.
Timing Differences (Mercantile vs. Cash Accounting)
If you follow the mercantile (accrual) system of accounting, you might have raised an invoice in March, but received the money in April. The deductor might report the TES in March. You must reconcile this timing difference and ensure the income is offered to tax in the correct year according to your accounting method.
Incorrect PAN Reporting
Sometimes, a deductor mistakenly quotes your PAN instead of someone else's.
- Login to the Income Tax Portal.
- Go to Services -> Annual Information Statement (AIS).
- Find the incorrect entry and submit feedback selecting ('Information relates to other PAN/Year')* or ('Information is denied').