Form 16 doesn't match AIS: what to do

Form 16 is your employer's certificate of salary and TDS. The AIS is the department's record of everything reported against your PAN. They often differ because the AIS has more than salary: interest, dividends, share sales, a second employer. Find which row differs, decide whether the Form 16 or the AIS is right, fix the wrong one, and file the correct figure.

The approach below applies to every tax year. Statement names change: Form 26AS holds the tax credit up to the tax year 2025-26 and Form 168 from 2026-27. The rules for 2026-27 are provisional.

How the documents relate

TaxCare's rule is simple. Income is cross-checked across all the documents and the higher figure is taken as the starting point. Tax credit (TDS) is taken from Form 26AS or Form 168 only.

Common reasons for a mismatch

1. You had more than one employer

Each employer reports its own salary and TDS. The AIS shows both; each Form 16 shows one. Add all the Form 16s and compare the total with the AIS. See how to file ITR with multiple Form 16s.

2. The AIS includes non-salary income

Savings and fixed deposit interest, dividends, rent, and securities sales appear in the AIS but not in Form 16. They are separate rows in the AIS and belong in your return as income from other sources or capital gains.

3. Salary in AIS is gross, Form 16 may show exemptions

The AIS may show the salary the employer reported before exemptions such as HRA, which Form 16 shows separately. Compare gross salary first, then the exemptions.

4. Perquisites or allowances added

The employer may have added perquisites (such as a car or ESOP value) to your taxable salary. They appear in Form 16 part B and may not be obvious in the AIS. Read both.

5. TDS differs

TDS in your Form 16 may differ from Form 26AS or Form 168 when the employer deducted the tax but filed the quarterly statement late, under a wrong PAN, or not at all. Only the credit that appears in the statement can be claimed.

6. Timing or revision

The employer may have revised its quarterly TDS statement after issuing your Form 16, so the AIS shows the newer figure. Or you left the job mid-year and the final settlement is reported later.

7. A wrong or duplicate AIS entry

Sometimes the AIS is wrong: a different PAN, a duplicate, a wrong amount.

Step by step: what to do

1. Download your AIS and TIS for the tax year. See how to download and read your AIS.
2. Pull out the salary rows (category Salary) and the TDS rows (sections 192, or 392 under the 2025 Act). Match each employer's TAN.
3. Compare with each Form 16. Note the exact rupee difference.
4. Classify it. Another employer? Missing Form 16? Revised statement? Wrong entry?
5. If the Form 16 is wrong or missing something, ask your employer to correct it and issue a revised Form 16 (and file a corrected TDS statement).
6. If the AIS is wrong, give feedback on that entry. See how to give feedback on wrong AIS entries.
7. If both are right but different, file the correct higher or combined figure, and keep a note of why.

What happens if you file the lower figure

The department compares your return with its records. If your return shows less income than the AIS and you have not explained it by feedback, you may receive a notice or an adjustment. During processing, the Centralized Processing Centre can send a notice of proposed adjustment under section 143(1)(a) when the income in your return differs from the data the department holds. You respond on the portal under Pending Actions > e-Proceedings within 30 days from the date of issue of the notice, agreeing or disagreeing with each variance and explaining why. You may also file a revised return.

Filing the correct figure and keeping evidence is the safe path.

Worked example

Form 16 from Employer A shows salary of ₹8,00,000 and TDS of ₹40,000. The AIS shows ₹8,00,000 from Employer A and ₹3,00,000 from Employer B, plus ₹12,000 of savings interest.

• Total salary: ₹11,00,000, not ₹8,00,000. Employer B did not give you a Form 16 yet. Ask for it.
• Interest of ₹12,000 is not in Form 16 and must be added under other sources.
• TDS to claim: only what Form 26AS or Form 168 shows for both employers.

The figures in this example are for illustration only.

What not to do

• Do not ignore the gap and hope it is not noticed.
• Do not claim TDS that does not appear in Form 26AS or Form 168.
• Do not claim the standard deduction twice if you have two Form 16s.

How TaxCare helps

TaxCare brings in your salary and TDS from the portal, compares them with your AIS, TIS and Form 26AS or Form 168, and flags each row that does not match, so you can see what to correct before you file. It takes TDS credit only from the tax credit statement. For a hard mismatch, a Tax Expert can help you decide. See pricing and the guide on what is AIS.

This guide gives general information and is not professional tax advice.