AIS / TIS mapping for MF transactions

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AIS and TIS mapping for mutual fund transactions is the process of reconciling mutual fund transaction data visible in the Annual Information Statement (AIS) and Tax Information Summary (TIS) – both accessible on the Income Tax Department’s e-filing portal (incometax.gov.in) – with the investor’s own capital gains statements from fund houses, RTAs, and trading platforms. Fund houses and RTAs are required to file a Statement of Financial Transactions (SFT) under Section 285BA of the Income Tax Act 1961, which feeds into the AIS. Discrepancies between the AIS and the investor’s self-computed figures, if unexplained in the ITR, may trigger automated mismatch notices from the Centralised Processing Centre (CPC). Accurate reconciliation before filing ITR-2 or ITR-3 is essential.

Tax advice disclaimer. This article is for educational reference only and does not constitute professional tax or financial advice. Tax law changes frequently and individual circumstances vary widely. Readers should consult a qualified Chartered Accountant or tax adviser before making any investment or tax-filing decision.

What is the AIS

The Annual Information Statement (AIS) is a comprehensive tax information document introduced by CBDT in November 2021, accessible on the income tax e-filing portal. It aggregates data reported by various third parties (banks, brokers, AMCs, RTAs, property registrars, foreign remittance handlers) and maps it to the taxpayer’s PAN. For mutual fund investors, the AIS includes:

  • Gross purchase consideration (total amount invested in MF units).
  • Gross sale/redemption consideration (total proceeds from MF redemptions).
  • IDCW income received from mutual funds.
  • TDS deducted under Section 194K (on IDCW for residents) or Section 195 (for NRIs).

What is the TIS

The Tax Information Summary (TIS) is a simplified, category-wise summary of the data in the AIS. It shows the taxpayer’s aggregate figures in key categories such as:

  • Securities transactions (purchase/sale of MF units, equity shares).
  • Dividend income.
  • Interest income.
  • Foreign remittances.

The TIS is pre-populated into the ITR form to guide the taxpayer.

What the AIS captures for MF transactions

Under the SFT rules (Rule 114E of the Income Tax Rules 1962), RTAs (CAMS, KFintech) and AMCs file SFT reports covering:

  • SFT-006: Purchase of MF units by individuals exceeding Rs 10 lakh in a year (reported by AMC/RTA).
  • SFT-007: Cash redemption of MF units.

Additionally, IDCW distributions are reported under TDS return Form 26Q (for resident IDCW) and Form 27Q (for NRI IDCW).

The AIS does not directly show capital gains computed by the fund house; it shows gross purchase and gross sale proceeds. Capital gains must be computed by the investor (or the taxpayer’s CA) from the cost basis information available from the fund house capital gains statement.

Common AIS-ITR mismatches for MF investors

1. Purchase/sale proceeds mismatch

The AIS may show gross redemption proceeds that differ from the investor’s figure because:

  • Multiple AMCs and RTAs report separately; the investor may have overlooked a small-value redemption.
  • STP transactions (each instalment) are reported individually; the investor may not have captured all STP redemptions.
  • Switch transactions are reported as separate redemption and purchase events; both arms are reported.

2. IDCW income mismatch

IDCW reported in the AIS reflects the gross IDCW declared by the fund, which may differ from the investor’s records if:

  • IDCW was declared but reinvested (under the dividend-reinvestment option, now IDCW-reinvestment), which may still be reported as income.
  • The investor’s records do not account for small-value IDCW from minor schemes.

3. TDS mismatch

TDS under Section 194K may appear in Form 26AS (and AIS) for the year in which IDCW was paid, which may differ from the year the investor’s records reflect it (if IDCW was declared in March but paid in April of the next year).

Reconciliation process

Step 1: Download the AIS and TIS from the Income Tax Department portal under “Services > Annual Information Statement.”

Step 2: Download capital gains statements from each AMC, RTA (CAMS, KFintech), and mutual fund platform (Zerodha Coin, Groww, MFCentral). These statements list each redemption/switch with lot-level details, holding periods, and computed gains.

Step 3: Reconcile sale proceeds – match each redemption in the capital gains statement with the corresponding AIS entry. For STP transactions, each STP instalment should appear.

Step 4: Reconcile IDCW – match IDCW amounts in the AIS with the IDCW credited to the bank account and the fund house IDCW statement.

Step 5: Reconcile TDS – match Section 194K TDS in Form 26AS with the IDCW declared.

Step 6: Correct or flag discrepancies – if the AIS contains an error (e.g., a transaction not belonging to the investor), submit feedback on the AIS portal to mark the entry as “Incorrect” or “Duplicate.” The AIS system accommodates feedback before ITR filing.

Step 7: File ITR using reconciled figures – use the capital gains statement data (not the AIS gross figures alone) for Schedule CG. Include IDCW in Schedule OS.

Feedback on AIS

The CBDT has built a feedback mechanism into the AIS interface. Taxpayers can mark each AIS transaction with a response:

  • Information is correct.
  • Information is not fully correct (provide correct value).
  • Information relates to other PAN/year.
  • Information is duplicate.
  • Information is denied.

Feedback is considered by the CPC when processing the ITR. If an ITR figure differs from the AIS without feedback, it may generate an automated mismatch notice under Section 143(1)(a).

NRI investors and AIS

For NRI investors, the AIS is accessible using the PAN and is relevant even though they may be filing from abroad. The AIS will reflect MF redemptions reported by RTAs and TDS deducted under Section 195. Reconciliation follows the same steps as for residents; NRI investors must additionally ensure DTAA-related TDS credits are correctly reflected in Form 26AS.

See also

References

  1. Income Tax Act 1961, Section 285BA – Statement of Financial Transactions.
  2. Income Tax Rules 1962, Rule 114E – SFT reporting requirements.
  3. CBDT notification on Annual Information Statement (November 2021).
  4. Income Tax Act 1961, Section 143(1)(a) – CPC automated adjustment for AIS mismatches.
  5. Income Tax Act 1961, Section 194K – TDS on IDCW.
  6. CBDT FAQ on AIS feedback mechanism.
  7. AMFI guidelines on capital gains statement format for RTAs.

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