Filing ITR soon? These 6 AIS mismatches may trigger an income tax notice

The income tax return filing season has started, and tax professionals now urge salaried employees, freelancers and business owners to avoid rushing through the process without checking financial records carefully. Experts say many taxpayers depend heavily on pre-filled forms and the Annual Information Statement, or AIS, but even a small mismatch can later trigger an income tax notice.

The AIS acts as a detailed financial summary available on the income tax portal. It records salary details, interest income, stock market transactions, property deals, taxes deducted at source and several other financial activities linked to a taxpayer.

However, chartered accountants say taxpayers should treat the document as a supporting reference instead of the final source for filing returns.

Tax consultant Suresh Surana warned that AIS entries may sometimes contain incomplete data, duplication or reporting mistakes. He advised taxpayers to compare the statement with Form 16, Form 26AS, bank records, investment documents and other financial papers before submitting returns.

The warning comes at a time when the Income Tax Department increasingly uses automated systems, artificial intelligence tools and data-matching software to identify inconsistencies. Officials now compare taxpayer declarations with records already available through banks, employers, mutual funds, stock brokers and other reporting agencies.

As a result, even a minor mismatch may trigger scrutiny or clarification notices.

At several tax consultancy offices in Delhi, Mumbai and Bengaluru, professionals reported a sharp rise in queries from first-time filers and salaried workers. Many taxpayers visited consultants after noticing differences between their bank statements and pre-filled portal entries.

One of the most common problems involves salary mismatches. Tax experts say some employees report income figures that differ from Form 16 or employer TDS filings. That difference often attracts automated alerts from the tax system.

Interest income also creates confusion. Many people forget to include earnings from savings accounts, fixed deposits, recurring deposits or even tax refunds. Banks regularly report such figures to the department, and those details usually appear in AIS. If taxpayers skip those amounts while filing returns, the system quickly identifies the gap.

Another major issue involves TDS and TCS claims. Some taxpayers accidentally claim higher tax credits than the amount reflected in Form 26AS or AIS. Experts say that mistake may delay refunds or invite notices asking for clarification.

High-value financial activity also remains under close watch. Mutual fund investments, stock market trades, luxury spending, foreign remittances and large property purchases often appear in AIS records. If those transactions do not align with declared income, tax officials may seek explanations.

Chartered accountants also flagged capital gains reporting as a sensitive area. Several investors either miscalculate profits from shares and mutual funds or fail to disclose them completely. Property transactions also frequently lead to errors during return filing.

For businesses and self-employed professionals, GST data creates another checkpoint. Experts say the department now compares turnover shown in GST filings with income declared in tax returns. Large gaps between the two may immediately raise suspicion.

Tax advisors say many people make mistakes because they try to complete filing quickly once pre-filled forms appear on the portal. However, experts recommend slowing down and reconciling every detail carefully.

Across tax offices and online forums, professionals continue advising taxpayers to review salary entries, interest income, deductions, capital gains and tax credits before clicking submit. According to experts, a few extra minutes of verification today can help taxpayers avoid stressful notices and lengthy explanations later.