Last reviewed: 25 September 2026. Form 16, Form 26AS and the AIS all describe your income and taxes - but they are not the same, and the tax department cross-checks them against your return. Understanding what each one shows, and reconciling them before you file, is the most practical way to reduce the risk of a mismatch notice. Here is a plain-language guide, with a worked reconciliation, a table of common mismatches and what to do if the department proposes an adjustment. Returns for AY 2026-27 (FY 2025-26) still use the 1961 Act and the old form names.
Quick summary
What each one is
| Document | Comes from | Shows |
|---|---|---|
| Form 16 | Your employer | Salary, deductions and TDS on salary |
| Form 26AS | Income tax department | TDS/TCS, advance & self-assessment tax, some high-value deals |
| AIS | Income tax department | Interest, dividends, shares, mutual funds, property and more |
| TIS | Income tax department | A category-wise summary of the AIS, after your feedback, used to pre-fill the return |
New form numbers from FY 2026-27. Under the Income-tax Rules, 2026, the salary TDS certificate issued for salary paid from 1 April 2026 is Form 130, under section 395(4) of the Income-tax Act, 2025 (old section 203). Form 16A becomes Form 131, and the tax credit statement that was Form 26AS is Form 168. For the AY 2026-27 return you are filing now, you will still see Form 16 and Form 26AS.
Why they must agree with your return
The department already holds this information. If your return leaves out something reflected in the AIS or Form 26AS - a savings interest, a dividend, a property sale - the system flags a mismatch and can issue a notice. Reconciling all three before filing catches these gaps.
Worked example: Form 16 TDS does not match 26AS
Priya's Form 16 for FY 2025-26 shows TDS of ₹1,20,000. Her Form 26AS shows only ₹1,10,000. The quarter-wise break-up shows the gap sits entirely in Q4: the employer deducted ₹30,000 from her January to March salary but reported only ₹20,000 in its Q4 TDS return.
| Quarter | Form 16 (Part A) | Form 26AS | Difference |
|---|---|---|---|
| Q1 | ₹30,000 | ₹30,000 | Nil |
| Q2 | ₹30,000 | ₹30,000 | Nil |
| Q3 | ₹30,000 | ₹30,000 | Nil |
| Q4 | ₹30,000 | ₹20,000 | ₹10,000 |
| Total | ₹1,20,000 | ₹1,10,000 | ₹10,000 |
The fix is for the employer to file a correction statement for Q4, after which the ₹10,000 appears in 26AS. If she files before that and claims ₹1,20,000, CPC is likely to allow only ₹1,10,000 and raise a demand of ₹10,000. Because the tax was actually deducted from her salary, section 205 of the 1961 Act bars the department from recovering it from her directly (the provision is section 401 of the 2025 Act for later years). She can rely on Form 16 and her salary slips in response. Our guide on TDS credit mismatch and section 205 protection covers this in detail.
Common mismatches and how to fix them
| Cause | Where it shows | Fix |
|---|---|---|
| Employer or bank short-reported TDS | Form 16 higher than 26AS | Deductor files a correction statement; section 205 (new section 401) protects tax actually deducted |
| Wrong PAN quoted by the deductor | TDS missing from 26AS entirely | Deductor corrects the PAN in a correction statement |
| Duplicate or wrong entry in AIS | AIS income higher than your records | Submit AIS feedback, keep evidence, report the correct figure |
| Interest reported on accrual vs receipt | AIS interest differs from bank credits | Report on the correct basis and keep the working |
| Income not reported by you | AIS shows interest, dividend or sale not in the return | Include it; if already filed, file a revised return |
| Previous employer's salary left out | AIS shows two employers | Combine both Form 16s and check TDS on the combined income |
How to use them together
- Start with Form 16 for your salary and the TDS on it.
- Check Form 26AS to confirm all your tax credits are showing.
- Review the AIS for other income - interest, dividends, capital gains - and reconcile it to your own records.
- If the AIS shows a wrong entry, submit feedback on the portal, but still verify against your records.
If you receive a 143(1)(a) proposed adjustment
When CPC finds a difference between your return and 26AS, AIS or Form 16, it can send an intimation under section 143(1)(a) proposing an adjustment before processing. You have 30 days to respond on the e-filing portal. Agree if the adjustment is correct. Disagree if it is not, with reasons and evidence: the employer's correction statement, AIS feedback, or bank records. If you do not respond, the adjustment is made when the return is processed. Where the mismatch is your omission, a revised return is often cleaner than arguing the adjustment.
Foreign income, RSUs and NRIs: what AIS and 26AS will not show
Employees of foreign companies with RSUs or ESPP, and residents with foreign bank or brokerage accounts, need more than these three documents. Foreign dividends, foreign capital gains and tax withheld abroad do not appear in 26AS or AIS. To claim credit for foreign tax you file Form 67 (Form 44 under the Income-tax Rules, 2026) before the return, and you report foreign assets in Schedule FA. See our guides on RSU and ESPP taxation for employees of foreign companies and Schedule FA reporting. NRIs reconciling Indian TDS on property sales or NRO interest can use our CA services for NRIs.
Frequently asked questions
What is Form 16?
Form 16 is the TDS certificate your employer gives you, showing your salary, the deductions considered, and the tax deducted and deposited. It is the starting point for a salaried person filing their return. For salary paid from 1 April 2026, it is replaced by Form 130 under section 395(4) of the Income-tax Act, 2025 (old section 203).
What is Form 26AS?
Form 26AS is your tax credit statement from the department - it shows the TDS and TCS deducted on your income, advance tax and self-assessment tax paid, and certain high-value transactions. Under the Income-tax Rules, 2026 the corresponding statement is Form 168.
What is the AIS?
The Annual Information Statement (AIS) is a wider record of your financial transactions the department has - interest, dividends, share and mutual-fund transactions, property deals and more. It is broader than Form 26AS. The Taxpayer Information Summary (TIS) is a category-wise summary of the AIS that the return form pre-fills from.
Why must these match my return?
Because the department already has this data. If your return omits income shown in the AIS or 26AS, or claims TDS that is not in 26AS, the mismatch can lead to an adjustment or a notice. Reconciling all three before filing reduces that risk.
What if the AIS shows something wrong?
The AIS can contain duplicated or incorrect entries. You can submit feedback on the portal to flag an entry as incorrect, but you should still reconcile it against your own records before filing.
My Form 16 shows more TDS than 26AS. What should I do?
Ask the employer to file a correction statement for the short-reported quarter so the credit appears in 26AS. If tax was actually deducted from your salary, section 205 of the 1961 Act (section 401 of the 2025 Act) bars the department from recovering that tax from you directly, and you can rely on Form 16 and your salary slips if a demand is raised.
What should I do if I receive a 143(1)(a) proposed adjustment?
Respond on the e-filing portal within 30 days. Agree if the adjustment is correct, or disagree with reasons and evidence, such as the employer's correction or AIS feedback. If you do not respond, the adjustment is made when the return is processed.
Which one should I rely on?
Use all three together - Form 16 for salary, Form 26AS for tax credits, and the AIS for the full picture of your income - and reconcile them against your own records before you file.
We reconcile your Form 16, 26AS and AIS before filing to reduce the risk of mismatch notices.
Income Tax FilingNotice ManagementTalk to CA Somesh Chandak & Associates - we are happy to help.
WhatsAppLinkedInSchedule a callDisclaimer: This article is for general guidance only and is not a substitute for advice on your specific facts and the latest law. Form numbers under the Income-tax Rules, 2026 are as listed by the Income Tax Department as on 25 September 2026. Please consult before acting.