How Do You Resolve an AIS or Form 26AS Mismatch on Foreign Income?
- Author:
- Manoj Sharma
- Verified by:
- Editorial team
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Short answer
An AIS mismatch on foreign income happens when the Annual Information Statement or Form 26AS shows figures that differ from your books or your return. You resolve it by reconciling each entry, giving online feedback on wrong entries, and reporting your full foreign income in the return. The department may share your feedback with the reporting source.
| Applies to | Governed by | Deadline | Penalty | Last verified |
|---|---|---|---|---|
| Resident freelancers, consultants and small exporters whose foreign receipts, GST turnover, foreign remittances or TDS and TCS entries in AIS or Form 26AS do not match their books or return | Section 285BB of the Income-tax Act, 1961 with rule 114-I of the Income-tax Rules, 1962 (AIS and Form 26AS for AY 2026-27 and earlier); section 510 of the Income-tax Act, 2025 (annual information statement, tax year 2026-27 onwards) | No separate deadline for AIS feedback was found on the official pages, and feedback can be modified any number of times. Return deadlines apply: belated return for AY 2026-27 by 31 December 2026; revised return for AY 2026-27 before the end of the assessment year | No penalty for the AIS feedback itself was found. Missing income in the return can lead to extra tax and interest, and a belated return carries a fee of Rs 1,000 (total income up to Rs 5 lakh) or Rs 5,000 | 9 Oct 2026 |
What is an AIS or Form 26AS mismatch on foreign income?
An AIS or Form 26AS mismatch on foreign income is any gap between what these statements show and what your books and return show. The Income Tax Department describes AIS as a comprehensive view of information for a taxpayer, while Form 26AS on TRACES shows only TDS and TCS data from AY 2023-24 onwards (AIS FAQ Q-6).
- AIS: Shows TDS and TCS, Statement of Financial Transactions (SFT) data, tax payments, demand and refund, and other information such as outward foreign remittance or purchase of foreign currency (AIS FAQ Q-2).
- TIS: The Taxpayer Information Summary groups AIS data by category. The value accepted by you or confirmed by the source is used to prefill the return, where applicable (AIS FAQ Q-5).
- Form 26AS: Lists tax deducted or collected at source. The department's help page shows it under e-File, Income Tax Return, View Form 26AS (Income Tax Department, returns and forms).
- Foreign data: AIS can include foreign remittance information reported in Form 15CC and information received under a tax agreement referred to in section 90 or 90A (Income Tax Department AIS page).
- GST turnover: AIS shows GST turnover under information code EXC-GSTR3B in the Other Information tab (AIS FAQ Q-15).
- Gaps: AIS includes only information the department holds now. The department says other transactions may not be displayed, and you must report complete and accurate information in the return (AIS FAQ Q-3).
For a freelancer paid from abroad, the most common gaps are foreign receipts that do not appear in AIS at all, GST turnover that differs from receipts in the books, and foreign tax withheld by a client that never appears in Form 26AS. See income tax on foreign income for freelancers for how that income is taxed.
Which taxpayers face an AIS mismatch on foreign income?
Any resident taxpayer whose foreign earnings, foreign accounts or foreign currency spending differ from the AIS figures can face an AIS mismatch on foreign income. Freelancers on presumptive taxation are affected too, because a resident with income from any source outside India cannot use ITR-4 (Income Tax Department, ITR-4 exclusions).
| Taxpayer type | Typical mismatch | Why it happens | Best for |
|---|---|---|---|
| Freelancer invoicing foreign clients | Foreign fees missing from AIS | AIS shows only information the department holds, so export receipts may not be listed | Designers, developers and writers paid from abroad |
| GST-registered service exporter | EXC-GSTR3B turnover differs from receipts in the books | GST turnover is reported by invoice period, while books may record receipts on a different basis | Consultants with GST registration who export services |
| Freelancer whose client withholds tax abroad | Net receipt in the bank, gross fee in the invoice | Foreign tax withheld is not Indian TDS and is claimed as foreign tax credit | Freelancers with clients in countries that withhold tax |
| Resident with a foreign bank or wallet balance | Information received from a foreign tax authority | AIS can show information received under a section 90 or 90A agreement | Freelancers who hold money in an account outside India |
| Freelancer paying for overseas tools or travel | Outward remittance or foreign currency purchase entries | AIS shows outward foreign remittance and purchase of foreign currency | Freelancers who remit money abroad |
How do you resolve an AIS mismatch on foreign income?
You resolve an AIS mismatch on foreign income by downloading AIS and TIS, matching each entry with your records, and submitting feedback on entries that are wrong. After you submit, the Taxpayer Information Summary is updated and the feedback may be shared with the information source for comments (CBDT steps to submit feedback, Step 6).
- Log in to the e-filing portal and open AIS from the dashboard, or from e-File, Income Tax Return, View AIS, then click Proceed to reach the AIS portal.
- Select the financial year and download AIS and TIS in PDF, JSON or CSV format.
- List every foreign receipt from your invoices and bank credit advices, and every TDS or TCS entry, for the same financial year.
- Match each AIS entry with your records and mark the ones that are wrong, duplicated or not yours.
- Open the entry, click Optional in the Feedback column, choose the feedback option, enter the details and submit. Use Bulk Feedback for many entries.
- Download the acknowledgement receipt from Activity History and keep the AIS Consolidated Feedback file with your tax papers.
- File or revise the return using your reconciled figures, including foreign receipts that AIS does not show.
Which feedback options does AIS offer for a wrong entry?
AIS offers six feedback types for a wrong or doubtful entry, according to the CBDT steps to submit feedback. An extra option, Income is not taxable, appears when the transaction relates to income.
- Information is correct
- Information is not fully correct
- Information relates to other PAN/Year
- Information is duplicate /included in other information
- Information is denied
- Customized Feedback
What happens after AIS feedback is submitted?
After AIS feedback is submitted, the feedback is shown with the entry and the modified value appears next to the reported value. You get an acknowledgement receipt and email and SMS confirmations (AIS FAQ Q-11). AIS shows a modified value after considering your feedback or the source's confirmation of it (AIS FAQ Q-2).
How do you report foreign income that AIS does not show?
Foreign income that AIS does not show still goes in the return. The department's guide says residents report income arising outside India in Schedule FSI and also in the head-wise computation of income, and must not use ITR-1 or ITR-4 if they have foreign assets or income (Step-by-Step Guide to FSI, TR and FA, paras 2 and 3). See which ITR form freelancers should file.
How do you handle foreign tax withheld that is missing from Form 26AS?
Foreign tax withheld by a client is claimed as foreign tax credit, not matched to Form 26AS. For FY 2025-26 and earlier, the credit is claimed by filing Form 67 on the e-filing portal (Form 67 FAQ 1 and 2). See foreign tax credit and Form 67 for the form that applies from tax year 2026-27.
What documents prove foreign income during an AIS mismatch review?
The documents that prove foreign income during an AIS mismatch review are the ones that tie each invoice to a bank credit and to the return. Keep invoices, bank advices or FIRA, bank statements, GST returns and the AIS feedback records together for each financial year, so you can answer any later query.
| Document | What it proves | Where it comes from | Best for |
|---|---|---|---|
| Export invoice | Gross fee, currency, client and date of service | Your own records | Matching gross income when the bank credit is lower |
| Bank credit advice or FIRA | Amount received in India and the purpose of the remittance | Your AD bank or the provider that settled the payment | Showing that a foreign receipt is export income |
| Bank statement | Date and rupee value of each credit | Your bank | Reconciling the year's receipts with the books |
| GSTR-3B and GSTR-1 | Turnover reported for GST | GST portal | Explaining the EXC-GSTR3B figure in AIS |
| AIS feedback acknowledgement and Consolidated Feedback file | That you disputed or corrected an AIS entry and when | AIS portal, Activity History | Responding to an e-campaign or notice |
| Foreign tax certificate or withholding statement | Tax withheld abroad on your fee | Foreign client or foreign tax authority | Supporting a foreign tax credit claim |
What happens if an AIS mismatch on foreign income is not resolved?
An AIS mismatch on foreign income that is not resolved can lead to queries through the Compliance Portal and to extra tax if income is left out of the return. The Compliance Portal is used to respond to e-Campaign, e-Verification and e-Proceedings (Compliance Portal FAQ 1).
- Queries: A mismatch can be raised as an e-Campaign or e-Verification, which you answer on the Compliance Portal through Pending Actions (Compliance Portal FAQ 5).
- Prefill: If you do not give feedback, the prefilled return uses the value processed by the system, which may include wrong or duplicate entries (AIS FAQ Q-5).
- Late return: A belated return for AY 2026-27 can be filed by 31 December 2026, and the fee is Rs 1,000 if total income is up to Rs 5 lakh and Rs 5,000 otherwise (Income Tax Department FAQ 7 and 25).
- Missed income: If foreign income was left out, the return may need revising or updating. An updated return under section 139(8A) of the 1961 Act is available for AY 2026-27 (Income Tax Department FAQ 8).
If you find the mismatch after filing, give AIS feedback first, then revise the return. A revised return for AY 2026-27 is governed by section 139(5) of the 1961 Act and can be filed before the assessment year ends (Income Tax Department FAQ 6). For help with AIS, the department lists 1800 103 4215, 09:30 to 18:00, Monday to Friday (Income Tax Department contact page).
How is an AIS mismatch on foreign income calculated?
An AIS mismatch on foreign income is calculated by taking the AIS or TIS figure, removing items that are wrong or not yours, and adding receipts AIS does not show. For example, say a GST-registered freelancer sees hypothetical GST turnover of Rs 24,00,000 under EXC-GSTR3B. Two March invoices worth Rs 2,00,000 are paid only in April. The books show Rs 22,00,000 received in the year. The gap of Rs 2,00,000 is a timing difference, so the AIS entry is correct and needs no correcting feedback, only a reconciliation note. The department says AIS may not show every transaction, so report full income (AIS FAQ Q-3).
| Reconciliation item | Hypothetical amount | Action | Best for |
|---|---|---|---|
| GST turnover in AIS (EXC-GSTR3B) | Rs 24,00,000 | Starting figure from AIS | GST-registered service exporters |
| Two invoices raised in March, paid in April | Less Rs 2,00,000 | Explain as timing; keep the invoices and bank advices | Freelancers billing near the year end |
| Receipts in books | Rs 22,00,000 | Matches after adjustments | Freelancers keeping receipts-based books |
| Duplicate SFT or remittance entry | Any amount | Give feedback: Information is duplicate /included in other information | Anyone seeing the same entry twice |
| Entry belonging to another person | Any amount | Give feedback: Information relates to other PAN/Year | Anyone with a wrongly tagged PAN |
What mistakes do freelancers make with an AIS mismatch on foreign income?
- Trusting AIS: Treating AIS as a complete list of income, when the department says other transactions may not be displayed.
- Denying correct data: Marking a correct GST turnover entry as denied because it differs from receipts, instead of keeping a reconciliation.
- Net figures: Reporting only the amount credited after foreign withholding or charges, instead of the gross fee on the invoice.
- Wrong form: Filing ITR-4 while holding foreign assets or earning income outside India, which the department says should not be done.
- No records: Not downloading the acknowledgement receipt and Consolidated Feedback file after giving feedback.
- Year mix-up: Matching AIS for one financial year with invoices from another, or applying Income-tax Act, 2025 sections to FY 2025-26 income, which is filed under the 1961 Act.
How did we verify this?
Every rule, deadline and form on this page is linked to its official source, checked on the dates below.
- Income Tax Department: FAQs on AIS (Annual Information Statement), Q-2, Q-3, Q-5, Q-6, Q-7, Q-9, Q-10, Q-11, Q-13, Q-14, Q-15 (checked 9 Oct 2026)
- Income Tax Department: AIS - Annual Information Statement help topic, Items 2, 3, 4, 5, 9, 10, 12 (checked 9 Oct 2026)
- CBDT: Steps to submit feedback (Online), uploaded 30 April 2026, Steps 1 to 6, feedback types and bulk feedback (checked 9 Oct 2026)
- CBDT: Annual Information Statement (AIS), Section 285BB read with rule 114-I, items (a) to (q) including (g) and (i); How to access AIS; offline utility (checked 9 Oct 2026)
- The Income-tax Act, 2025 (Gazette of India, 21 August 2025), Section 510 (annual information statement) (checked 9 Oct 2026)
- Income Tax Department: Individual - Business/Profession, returns and forms applicable, Form 26AS and AIS rows; ITR-4 exclusion for income from any source outside India (checked 9 Oct 2026)
- Income Tax Department: Income Tax Returns FAQs, FAQs 4, 6, 7, 8, 16, 25 (checked 9 Oct 2026)
- Income Tax Department: View and Submit Compliance FAQs, FAQs 1, 2, 3, 5 (checked 9 Oct 2026)
- Income Tax Department: Contact Us, AIS and Reporting Portal helpline and grievance route (checked 9 Oct 2026)
- Income Tax Department: Step-by-Step Guide to Fill FSI, TR and FA Schedule in ITR, Paragraphs 2 and 3 (checked 9 Oct 2026)
- Income Tax Department: Form 67 FAQs, FAQs 1, 2, 6 (checked 9 Oct 2026)
Frequently asked questions
Does AIS show payments received from foreign clients?
AIS may not show payments received from foreign clients. It shows only information the Income Tax Department holds, such as TDS, SFT data, GST turnover and some foreign remittance data. The department says other transactions may not be displayed, and taxpayers must report complete and accurate income in the return.
Can AIS feedback be changed after it is submitted?
Yes. AIS feedback can be changed after it is submitted. The Income Tax Department's AIS FAQ says there is currently no limit on the number of times you can modify feedback already given. Each submission updates Activity History and gives a fresh acknowledgement receipt, which you should keep.
What is the AIS Consolidated Feedback file?
The AIS Consolidated Feedback file is a single PDF that lists all your AIS feedback other than entries marked Information is correct. You can download it after submitting feedback. It is useful to keep with your tax papers in case a mismatch query or notice arrives later.
Is Form 26AS still useful for foreign income after AIS was introduced?
Form 26AS is still useful for checking TDS and TCS credits. From AY 2023-24 onwards, Form 26AS on TRACES shows only TDS and TCS data, while other details sit in AIS. Foreign tax withheld abroad does not appear there and is claimed through the foreign tax credit form.
Can AIS feedback be submitted offline?
Yes. AIS feedback can be submitted online on the e-filing portal or through an offline utility, according to the Income Tax Department. Online, you can give feedback on one entry or use the Bulk Feedback button to submit the same response for several selected entries at once.
Which section of the Income-tax Act, 2025 covers the annual information statement?
Section 510 of the Income-tax Act, 2025 covers the annual information statement for tax year 2026-27 onwards. It lets the prescribed authority upload the statement to the taxpayer's registered e-filing account. Section 285BB of the Income-tax Act, 1961 is the older provision people still search for.
Where can a taxpayer raise an AIS grievance about wrong foreign remittance data?
A taxpayer can raise an AIS grievance about wrong foreign remittance data from the Help menu of the AIS portal, reached through the AIS tab on the e-filing portal. The department also lists the helpline 1800 103 4215, open 09:30 to 18:00, Monday to Friday, for AIS queries.