Discrepancy in "Processed By Source" and "Accepted by Tax Payer" on ITS

This is a known duplication issue in AIS where banks report the same interest once under SFT-016 (interest from bank) and once under TDS (26AS data). The correct approach is:

Step 1: Check which entry is the actual source. In AIS, expand both entries ,  one will be from the bank as an SFT reporting entity, and the other from TDS statements. If the bank deducted TDS on the interest, it appears in both.

Step 2: Submit AIS Feedback on the lower-confidence entry. Typically, mark the SFT entry as Duplicate/Included in other information and NOT the TDS entry (since TDS reflects actual deduction and is harder to override).

Step 3: Report the correct figure in your ITR. In Schedule OS (or Schedule S for salary-linked accounts), declare Rs. 1,66,049 ,  not the doubled figure. The ITR amount you enter does not have to match the AIS gross figure if you have explained the duplication via feedback.

Step 4: Your revised AIS will update within a few days after feedback. If you file before it updates, use the correct bank certificate or Form 26AS TDS amount as your basis.

The key rule: always report what is actually correct based on your bank statement and TDS certificates, even if AIS shows a different (inflated) number. AIS is a pre-filled reference, not a binding amount.

For a full walkthrough on ITR filing with AIS reconciliation, this [ITR filing guide for AY 2026-27](https://taxgarden.in/blog/how-to-file-itr-first-time-online-ay-2026-27-beginners-guide-india) covers the AIS feedback process and what to do when there are mismatches.