ITR filing | AIS discrepancy of even ₹5,000 can trigger notices: How to avoid

As the September 15, deadline for filing income tax returns (ITR) approaches, one of the most common concerns for taxpayers is receiving notices due to mismatches in the Annual Information Statement (AIS).

Even small discrepancies can draw attention, as illustrated in a case shared by Sujit Bangar, Founder of TaxBuddy.com and former IRS officer, where a taxpayer received a notice for not declaring interest income of just ₹5,000.

So, how do AIS mismatches occur, and what should taxpayers keep in mind before filing?

What is AIS?

The Annual Information Statement is a consolidated record of a taxpayer’s financial transactions, including income, taxes paid, and high-value transactions reported by banks, companies, or other institutions.

The Income Tax Department cross-checks ITRs against AIS data, and mismatches often trigger automated notices.

Where do mismatches commonly occur?

Bangar highlights several areas where taxpayers need to be careful:

• Bank interest must be reported on a gross basis in Schedule OS, with TDS claimed in Schedule TDS.
• Dividends should be reported in full, not after deducting charges or fees.
• Capital gains from equity or mutual funds must reflect every transaction listed in AIS, including adjustments for corporate actions.
• Rental income with TDS deductions should appear under “Income from House Property” and match the TDS schedule.
• Refund interest received from the tax department is taxable and should be included in Schedule OS.
• Business turnover should reconcile with GST returns where applicable.
• Cash deposits, credit card spends, property deals, and foreign transactions may not directly appear as income but must be supported with proper disclosures or funding trails.

Why it matters this year

For assessment year 2025–26, additional scrutiny applies for high-income taxpayers. Bangar notes that those with income above ₹1 crore must disclose year-end assets and liabilities in Schedule AL, covering property, deposits, and other major assets.

What taxpayers should do

Experts suggest reconciling AIS, Form 26AS, and TDS certificates before filing. Differences should be explained or corrected to avoid automated adjustments under section 143(1)(a).

Filing early also reduces the risk of last-minute errors when portal traffic is heavy.

First Published: 

Sept 11, 2025 4:36 PM

IST