Form 26AS vs AIS discrepancy for RSU holders: what to do

After filing ITR-2, many RSU holders open their AIS (Annual Information Statement) and find income figures that don't match what they declared. The most common version: AIS shows ₹18 lakh from "sale of securities" but the ITR-2 Schedule CG shows only ₹3 lakh in capital gains.

This is not a discrepancy in the meaningful sense. It's a difference in what the two systems are measuring. Understanding that difference — and knowing how to respond — prevents a routine AIS feedback request from becoming a Section 143(1) notice.

What Form 26AS shows (and what it doesn't)

Form 26AS is a TDS statement. It shows:

• TDS deducted from your salary (by your employer, reported in Form 24Q)
• TDS deducted from fixed deposit interest (by your bank)
• TDS on any other payments where a deductor filed a TDS return
• Advance tax and self-assessment tax paid via Challan 280
• Refunds issued

What Form 26AS does not show:

• Gross RSU sale proceeds (unless a broker filed a TDS return — uncommon for US-listed shares)
• RSU perquisite value (unless your employer's Form 24Q includes it, which it should via Schedule S TDS)
• Capital gains computation
• Foreign income

Form 26AS is the authoritative source for TDS credit. If your Form 26AS and Form 16 disagree on TDS, trust Form 26AS and raise a query with your employer.

What AIS shows (and why it looks alarming)

AIS (Annual Information Statement) is a broader statement introduced to capture income information from multiple sources — banks, brokers, mutual funds, registrars, and foreign remittance data from banks.

For RSU holders, AIS typically shows:

Sale of securities

AIS shows the gross sale proceeds reported by your broker or by the bank that processed the foreign inward remittance. It does not know your cost basis. It does not compute capital gains.

Example:

• You sold 50 RSU shares in FY 2025-26 for $8,000 (₹6.7 lakh at current TTBR)
• Cost basis: 50 shares × $150 FMV at vest × ₹83.5 TTBR = ₹6.26 lakh
• Actual STCG: ₹6.7L − ₹6.26L = ₹44,000

AIS shows: ₹6.7 lakh (gross proceeds) Your ITR-2 Schedule CG shows: ₹44,000 (capital gain)

The ₹6.26 lakh difference is your cost basis — it is not unreported income. This is the single most common source of AIS "discrepancy" for RSU holders.

Foreign remittances (LRS / FEMA)

When RSU proceeds or dividends arrive in India via a wire transfer, your bank may report the inward remittance to AIS. This can double-count if AIS also shows the securities sale separately.

Dividend income

US companies pay dividends on RSU shares held in the broker account. These appear in AIS if the US broker or your Indian bank reported the foreign dividend inflow. Dividends are taxable as Income from Other Sources and must be reported in ITR-2 (Schedule OS + Schedule FSI).

Perquisite / salary

AIS may show a "salary" or "perquisite" entry from your employer's Form 24Q that includes the RSU vest value. This should match your Form 16 Part B.

How to reconcile AIS with your ITR-2

Step 1: Download both documents

• AIS: incometax.gov.in → e-File → Income Tax Returns → View AIS
• Form 26AS: incometax.gov.in → e-File → Income Tax Returns → View Form 26AS
• Your ITR-2 filing (View Filed Returns → download the filed JSON/PDF)

Step 2: Map each AIS entry to its ITR-2 schedule

AIS entry type	ITR-2 location	What the difference means
Sale of securities (gross proceeds)	Schedule CG (net capital gain)	Difference = cost basis. Normal.
Dividend (foreign)	Schedule OS + Schedule FSI	Should match. If missing, revise ITR.
Salary / perquisite	Schedule S	Should match Form 16.
TDS deducted	Part B of ITR-2 (TDS schedule)	Should match Form 26AS.
Foreign remittance inward	May overlap with securities sale	Check for double-counting.

Step 3: Submit AIS feedback for each entry

The AIS portal has a feedback mechanism. For each entry, you can mark it as:

• Income is included in ITR — use this for the gross proceeds entry (your ITR has the net gain, which is included)
• Income is not taxable — use for entries that are genuinely exempt
• Income is included in other head — use if the entry appears under a different income head in AIS than how you reported it
• Duplicate entry — use if the same income appears twice in AIS

For the gross-proceeds-vs-capital-gain issue: Select "Income is included in ITR" and add a note: "AIS shows gross sale proceeds of ₹X. Capital gain of ₹Y (proceeds minus cost basis of ₹Z) is reported in Schedule CG of ITR-2."

Submitting AIS feedback before filing reduces the chance of an automated mismatch notice. If you've already filed, submit feedback after filing.

Step 4: Verify TDS credits match

Every TDS entry in Form 26AS should appear in your ITR-2 Part B tax computation. If you've claimed less TDS than Form 26AS shows, you've overpaid and can claim the excess as a refund. If you claimed more TDS than Form 26AS shows, the excess will be disallowed by CPC.

The Section 143(1) intimation: how to respond

If CPC sends a Section 143(1) intimation showing higher income than your ITR, the typical path for RSU holders:

If the discrepancy is cost basis (gross proceeds vs capital gain):

1. Respond within 30 days via the Compliance portal on incometax.gov.in
2. Upload your capital gains computation: sale date, shares, gross proceeds in INR, cost basis (FMV at vest × SBI TTBR), net capital gain
3. Attach broker statements showing vest dates and sale proceeds
4. The CPC processing system should accept the explanation and issue a revised intimation showing no additional demand

If you genuinely omitted income (e.g., missed a dividend):

1. File a revised return under Section 139(5) including the omitted income — do this before December 31, 2026
2. Pay the additional tax via Challan 280 before filing the revised return
3. Respond to the 143(1) intimation citing the revised return acknowledgement number

If AIS shows income that isn't yours (wrong PAN linkage):

1. Submit AIS feedback marked as "Information is not related to me"
2. Raise a grievance via the ITD portal citing the incorrect entry
3. Respond to any 143(1) intimation with a written explanation and the AIS feedback submission reference

Common RSU-specific AIS issues and resolutions

"Sale of securities" shows 5× my Schedule CG income

Almost certainly a cost basis issue. Your vested RSU shares had a substantial cost basis (FMV at vest) that AIS doesn't know about. Resolution: AIS feedback with capital gains computation.

AIS shows the same foreign remittance twice

Once under "sale of securities" (from the broker filing) and once under "foreign remittance" (from your bank). Submit feedback marking the second entry as "Duplicate entry."

AIS shows a US dividend but I didn't report it

Report it in Schedule OS and Schedule FSI in a revised return. Claim the US withholding tax via Form 44 (file Form 44 the same day as or before the revised ITR-2). Submit AIS feedback: "Income is included in ITR — revised return filed on [date], acknowledgement no. [X]."

AIS shows a higher perquisite than my Form 16

Your employer may have updated the TDS return after issuing Form 16. Cross-check with your employer's HR/payroll team. If the higher AIS figure is correct, a revised return may be needed. If Form 16 is correct and the employer's TDS return has an error, ask your employer to file a correction in Form 24Q.

One proactive step: check AIS before filing

The best time to reconcile AIS is before you file ITR-2, not after. Log in to the AIS portal, review every entry, identify anything that looks wrong or double-counted, and submit feedback. CPC's automated processing gives weight to AIS feedback submitted before filing — it reduces mismatch flags significantly.

For RSU holders: plan on 30–60 minutes to work through the AIS entries, especially if you had multiple vest events, sales in different months, and dividend payments during the calendar year.