The income tax return (ITR) filing season for FY 2026–27 has begun, and for many taxpayers, the process may feel simple, i.e., log in, check pre-filled details, match numbers and submit the return. But tax experts say one small mismatch between your return and government records could later bring an unexpected income tax notice.
This is where the Annual Information Statement (AIS) becomes important. The such as salary, bank interest, investments, property deals and taxes deducted. However, experts warn that blindly relying on it may be a mistake.
According to CA (Dr.) Suresh Surana, taxpayers should treat AIS as a reference point, not the only document for filing returns.
“Taxpayers should not treat the Annual Information Statement (AIS) as the sole basis for filing their Income Tax Return (ITR), as the information reflected therein may at times be incomplete, duplicated, or subject to reporting errors,” Surana said.
He advised taxpayers to compare AIS details with Form 16, Form 26AS, bank statements, investment proofs and other financial records before filing returns.
The Income-tax Department is increasingly using automated data matching, artificial intelligence-based checks and system-driven verification to spot inconsistencies.
This means if the the information already available with the tax department, it could trigger a notice or scrutiny.
“With the Income-tax Department increasingly relying on automated data matching, artificial intelligence-based risk assessment, and system-driven verification processes, taxpayers are expected to ensure consistency between the information reported in their ITR and the records already available with the Department,” Surana explained.
Salary income mismatch
One of the most common reasons for notices is salary mismatch. If the salary income reported in your ITR is different from what appears in Form 16, employer TDS filings or AIS, the department may ask questions.
Interest income left out
Many taxpayers forget to report interest earned on savings accounts, fixed deposits (FDs), recurring deposits (RDs) or even income tax refunds.
Surana said such income is often reflected in AIS through bank reporting. Missing or under-reporting it may result in a mismatch notice.
TDS or TCS mismatch
Claiming extra TDS or TCS credit that does not match Form 26AS or AIS can delay refunds or invite clarification from the tax department.
High-value transactions under scanner
Large mutual fund investments, property purchases, sizeable credit card payments, foreign remittances and stock market transactions are often visible in AIS.
If these transactions do not match the income declared in the return, they could raise red flags.
Capital gains errors
Selling shares, mutual funds or property without correctly reporting capital gains is another common issue.
“Incorrect computation or omission of capital gains in the ITR could trigger an inquiry,” Surana warned.
GST and business income mismatch
For businesses and professionals, differences between GST returns and income declared in ITR may also attract scrutiny.
“Where turnover reported in GST returns is significantly higher than the turnover or gross receipts disclosed in the ITR, the tax department may identify the discrepancy through data matching mechanisms,” Surana said.
Experts say taxpayers should avoid filing returns in haste just because pre-filled forms look complete. Taking time to cross-check income, deductions and tax credits could save trouble later.
A few extra minutes spent reconciling AIS with actual financial records today may help avoid a tax notice tomorrow.