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Chapter 3Filing ITR-1 — step by step

Pulling the inputs — Form 16, 26AS, AIS

In this chapter: What each document tells you and how to reconcile them · Spotting mismatches before they become a notice · Pre-filled returns — why you must still verify

~3 min readLayer 1 · Financial LiteracyFree
Foundation

Three documents drive your ITR-1: Form 16 (issued by your employer by mid-June, summarises salary paid and TDS deducted), Form 26AS (consolidated TDS/tax statement from the income-tax portal — shows all TDS reported on your PAN by every deductor), and AIS (Annual Information Statement — a comprehensive view including bank interest, dividends, mutual fund redemptions, large transactions). Reconcile all three before filing.

Deep Dive

Common mismatches: bank-interest TDS appearing in 26AS but not declared by you; mutual-fund redemptions or dividends appearing in AIS that you forgot; rent paid (claimed as HRA) reported by your landlord in their tax filings creating a counterparty data point; share trades appearing as STCG/LTCG in AIS. A mismatch above ₹50,000 is almost certain to trigger a notice if you do not address it. The right workflow: download all three, tabulate side-by-side, and explicitly account for each line that hits 26AS or AIS.

Advanced

AIS now includes a "feedback" mechanism — you can mark a reported transaction as "incorrect" or "duplicate", and it reflects in TIS (Taxpayer Information Summary). Use this proactively — for example, if your AIS shows a securities transaction but it was actually a transfer between your own accounts, mark it. Also, the pre-filled return on the portal pulls from 26AS and AIS but NOT from Form 16 directly — verify the pre-filled salary numbers against your Form 16, especially for joiners/leavers in the year.

Educational purposes only. The numbers, returns, and examples used in this lesson are illustrative. Past performance does not guarantee future results. Mutual fund and securities investments are subject to market risks. This lesson is not investment advice; for advice tailored to your circumstances, consult a SEBI-registered Investment Adviser. Read our full disclaimer.