AIS, TIS and reconciling mutual fund gains pre-filing

The Annual Information Statement and Taxpayer Information Summary are CBDT initiatives to make ITR filing data-driven and pre-populated. AIS captures every financial transaction reported by entities to the income tax department against your PAN — including by AMCs, by banks, by registrars, by mutual fund platforms. TIS distils this into the headline numbers used to populate the ITR utility. For mutual fund investors, this is mostly helpful but has some specific limitations worth knowing.

What AIS captures from mutual fund activity

AMCs report the following to the income tax department, each appearing as a separate AIS line:

• Purchase transactions — date, scheme, amount, units allotted.
• Redemption transactions — date, scheme, sale value, units redeemed.
• IDCW payments — date, scheme, amount paid.
• TDS deducted on IDCW payments (Section 194K).
• STT paid on equity redemptions.
• Stamp duty deducted on purchases.

The reporting is done quarterly (Form 26Q for TDS / TCS) and annually (Statement of Financial Transactions under Rule 114E). The transactions appear in your AIS typically within 60 days of the quarter end, sometimes faster.

What AIS does not compute

• Capital gains per redemption. AIS shows the sale value but does not compute the gain. You need the per-instalment cost basis from the AMC's annual capital-gains statement.
• FIFO unit allocation. For partial redemptions, AIS does not work out which units were deemed sold.
• Grandfathering for pre-2018 equity units. The 31-Jan-2018 NAV substitution for cost basis is computed by AMC statements, not by AIS.
• Switch-out as separate taxable events. Switches show in AIS as redemption + purchase but the gain computation is not done.
• Indexation on pre-April-2023 debt units. AIS does not apply indexation.

The TIS extract

TIS takes the AIS data and aggregates it into 12-15 headline buckets — total interest income, total dividends, total capital gains, total tax deducted, etc. The ITR utility pulls TIS data and pre-populates the relevant return fields. You see the pre-populated numbers and confirm or override them.

For mutual fund capital gains, TIS will show "aggregate sale value" but the gain computation remains your work. The ITR utility lets you enter the per-ISIN cost basis manually in Schedule 112A (equity LTCG) or Schedule CG (others).

Reconciliation workflow

Before filing, reconcile three sources:

1. AIS: total purchase, redemption, IDCW, TDS as reported by the AMCs.
2. AMC capital-gains statement: the per-ISIN gain computation. Issued by 30 June for the prior FY; downloadable from the AMC investor portal or CAMS / KFintech.
3. Consolidated Account Statement (CAS): the transaction-level audit trail.

Compare AIS totals against the AMC statement totals. They should match within a few rupees (rounding). If they do not, identify why before filing — common causes are mid-FY changes in name spelling, mismatch between PAN status (NRI vs resident), or missed reporting from one AMC.

Flagging incorrect AIS entries

If you find AIS contains an entry that is not actually yours (someone else's PAN matched yours by error, or an AMC duplicated a report), you can submit feedback through the AIS portal. The flagged entry gets removed pending verification. Common reasons for incorrect entries:

• Reporting against the wrong PAN by mistake.
• Duplicate reporting from multiple distributors handling the same investment.
• Old fund-house mergers leaving stale entries.

The compliance trade-off

You can file an ITR that differs from TIS data. The CBDT does not auto-reject; instead, the difference is flagged for assessment. Common cases where your ITR differs from TIS legitimately:

• Inherited units: AIS shows the redemption against your PAN, but the cost basis is the deceased's original cost — not visible in your AIS.
• Pre-2018 equity units with grandfathering adjustment.
• Foreign tax credits under DTAA reducing the effective gain tax.

In each case, file with your computed figures and keep the supporting documents. If the assessing officer raises a query, you have the reconciliation ready.

For NRIs

NRIs receive AIS the same way residents do. The DTAA-relieved tax often shows in AIS as TDS at the higher domestic rate; the residence-country tax credit reconciliation happens at filing. Schedule TR in ITR-2 captures the foreign tax credit claim.

Timing of access

AIS for a financial year is typically fully populated by mid-July. The ITR filing deadline is 31 July for non-audit cases, so you have a two-week reconciliation window. Plan to:

• Download AMC capital-gains statements by 30 June.
• Download AIS and TIS by 15 July.
• Reconcile and file by 25-28 July to leave time for any AIS feedback corrections.