ITR filing tips 2026: Relying only on AIS may trigger an income-tax notice. Here's what to do

If you are planning to file your Income-tax Return (ITR) for AY 2026-27 on your own, here's an important tip from a tax expert: Don't rely entirely on your Annual Information Statement (AIS) as the sole source of information while filing your ITR. It could lead to an income-tax notice, as information in AIS may at times contain errors.

CA Dr Suresh Surana said, "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.

What should you do?

According to Dr Surana, taxpayers should carefully reconcile the details appearing in the AIS with their books of accounts, bank statements, Form 26AS, Form 16/16A, investment records, and other supporting financial documents before filing the return.

"Any discrepancy identified during such reconciliation should be appropriately examined and addressed through accurate disclosure in the ITR or supported with adequate documentation, wherever required, to minimise the risk of potential scrutiny or notices from the Income-tax Department," he said.

What kind of errors are seen in AIS?

The following are some of the commonly observed mismatches in AIS that may lead to scrutiny or post-filing notices:

Where salary income reported in the ITR differs from the salary disclosed in Form 16, TDS returns filed by the employer, or reflected in AIS, the department may seek clarification regarding any under-reporting of income.

Interest earned on savings bank accounts, fixed deposits (FDs), recurring deposits (RDs), income tax refunds, etc., often appear in AIS based on reporting by banks and financial institutions. Non-disclosure or partial disclosure of such income in the ITR may result in a mismatch notice.

Claiming excess Tax Deducted at Source (TDS) or Tax Collected at Source (TCS) credit that does not reconcile with Form 26AS or AIS may lead to adjustment of refund claims or issuance of a notice seeking justification.

Transactions such as large mutual fund investments, purchase or sale of immovable property, substantial credit card payments, foreign remittances, or securities transactions reflected in AIS but not aligned with declared sources of income may attract scrutiny.

Sale of shares, mutual funds, property, or other capital assets may be reported in AIS by intermediaries. However, incorrect calculation or omission of capital gains in the ITR could trigger an inquiry.

Apart from AIS, turnover reflected through GST filings, TDS under business-related sections, or reported financial transactions that materially differ from income disclosed in the return may raise red flags.

"Where turnover reported in GST returns (such as GSTR-1 or GSTR-3B) is significantly higher than the turnover or gross receipts disclosed in the ITR, the tax department may identify the discrepancy through data matching mechanisms. Such differences may trigger scrutiny, particularly for businesses and professionals, unless adequately supported by valid reasons," said Dr Surana.

Why is cross-checking data important?

As the Income-tax Department has started to increasingly rely on automated data matching, artificial intelligence-based risk assessment, and system-driven verification processes, it has become important for ITR filers to cross-check their data and provide only correct information in their returns to avoid notices.

"Taxpayers are expected to ensure consistency between the information reported in their ITR and the records already available with the Department," said Dr Surana.