Dividend income mismatch in personal record and AIS: How to file ITR

Reconciliation should be done between the dividend records you maintain, statements from companies or mutual funds, and amounts in Form 26AS/TIS.

Dividend income may appear differently across personal records and the Annual Information Statement . This creates confusion on which figure to report. Today's Ask Wallet Wise query answers how to report dividend in case of a mismatch. 

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I keep a record of all my dividends (from shares and mutual funds) in an Excel worksheet, updated as and when dividend amounts are credited or reinvested. However, when I try to reconcile my records with the TIS (Total Income Summary) and AIS (Annual Information Statement), I notice a difference between the total dividend amount in my records and the amount reflected in the TIS downloaded from the Income Tax site. Which figure should be considered for reporting in the ITR – the TDS/TCS figure, or the actual dividend amount credited to my bank account?

Expert Advice: In the case of dividend income, the amount to be reported in the Income Tax Return (ITR) is the gross dividend declared/credited by the company or mutual fund, i.e., before deduction of tax at source (TDS). The amount reflected in the bank account is the net dividend (after TDS), while the TIS/AIS may separately show both the gross dividend and the TDS deducted under Section 194 or other applicable provisions.

The Specified Financial Transaction (SFT) data in AIS is primarily furnished by intermediaries (such as depositories, registrars, or companies) and may sometimes differ in timing or classification from the actual bank credit. Similarly, the TDS/TCS data only reflects the tax deducted and reported by the payer, not the total income.

For reporting purposes in the ITR, the correct figure is the gross dividend income declared/credited during the year. Against this, the TDS deducted (as reflected in Form 26AS/TIS) can be claimed as credit.

Reconciliation should therefore be done between the dividend records you maintain, statements from companies or mutual funds, and amounts in Form 26AS/TIS.

This ensures that all income is properly reported, and all eligible TDS credit is claimed.

If, even after reconciling with company/mutual fund statements and bank records, a discrepancy persists between your records and the AIS/TIS, feedback can be submitted on the AIS portal. Multiple transactions can be corrected in one go using the feedback option.

• The available feedback options are:
• 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 (e.g., “Income is not taxable”)