Your Annual Information Statement (AIS) lists what banks, companies, tenants, registrars and fund houses report against your PAN. When your return shows less, the system flags a mismatch. For NRIs, most mismatches come from NRO interest, share and fund sales, property transactions and entries that are not theirs at all.
Led by Regi Tom Antony, FCA, MBA (Australia), ACMA (UK), CGMA (USA), CISA (USA), former Group CFO/COO (OSRAM/Siemens, Westcon Group; Middle East & Africa).
An AIS mismatch notice means the Annual Information Statement on the income tax e-filing portal shows income or transactions that your return did not report, or reported at a different amount. For NRIs the usual causes are interest on NRO deposits, sale of shares or mutual funds, rent, property purchases or sales, dividends, and entries reported against the wrong PAN. The department acts in three ways: a proposed adjustment to your return under section 270 of the Income-tax Act, 2025 (earlier section 143(1)), a compliance e-campaign asking you to respond online, or an inquiry under section 268 (earlier section 142(1)). The right response is to compare AIS, Form 26AS and your return line by line, submit feedback on AIS for entries that are wrong, duplicated or not yours, and revise or explain where the return was short. Respond within the time given; an ignored adjustment becomes a demand under section 289 (earlier section 156).
The common causes we see in NRI returns:
| AIS ENTRY | WHY IT MISMATCHES | WHAT TO DO |
|---|---|---|
| Interest on NRO deposits | Accrued interest reported by the bank was left out, or the TDS was claimed without the income. | Include the interest; claim the TDS and any DTAA rate. |
| Interest on NRE or FCNR deposits | Some banks report tax-free NRE interest in AIS. | Give feedback that the income is exempt; keep the NRE statement. |
| Sale of shares and mutual funds | AIS shows the sale value, not the gain. | Report the capital gain with the cost; AIS sale value alone is not income. |
| Rent | Tenant's TDS shows rent you did not report, or a co-owner's share in full. | Report your share; give feedback on the split. |
| Property sale or purchase | Registrar's report shows the transaction value. | Report the capital gain on a sale; explain the source of funds on a purchase. |
| Dividends | Dividends reported by companies were missed. | Include them; claim the TDS. |
| Entries that are not yours | Wrong PAN quoted by a bank, buyer or tenant. | Give feedback as "information not related to me". |
An intimation proposing to add the missing income while processing your return. You get a short window to agree or disagree online.
An email or SMS asking you to respond to specific AIS entries. Not a formal notice yet, but ignoring it invites one.
The assessing officer asks for documents or an explanation, often for high-value entries such as property or large share sales.
On the e-filing portal, open AIS and choose feedback against each entry. The options include:
Feedback is sent to the reporting source for confirmation. Keep evidence for each entry; feedback alone does not close a notice that has already been issued.
Regi's advice: “If a tax notice arises, don't panic. Engage a CA experienced in NRI matters to handle it.”
Share the notice and your AIS. We will tell you which entries matter, what to accept and what to contest, and the reply date.