As the ITR filing season for the assessment year 2026 begins, taxpayers are being advised to cross-check their Annual Information Statement (AIS) before submitting returns.
Experts say discrepancies between declared income and information available with the Income Tax department could lead to scrutiny or notices later.
What is Annual Information Statement?
The Annual Information Statement, or AIS, is a detailed financial record available on the Income Tax department’s portal. It contains information related to income earned, taxes paid, investments, securities transactions, interest income, dividend receipts and other high-value financial activities reported against a taxpayer’s PAN, as per News18 reports.
The statement was introduced to provide taxpayers with a broader view of their financial transactions and help them file accurate returns. AIS also includes feedback options that allow users to report incorrect entries or duplicated information.
Why do AIS mismatches matter during ITR filing?
Tax professionals quoted in the report said mismatches between AIS data and filed returns are among the common reasons for tax notices. If certain income entries appearing in AIS are omitted from the ITR, the system may flag the return for verification.
Differences may arise due to reporting delays by banks or financial institutions, incorrect PAN mapping, or taxpayers failing to account for all sources of income. Interest from savings accounts, fixed deposits, stock market transactions and mutual fund redemptions are among the areas often highlighted in AIS records.
Experts also noted that even if a taxpayer believes an entry is incorrect, ignoring it while filing returns may still trigger queries from the department. Instead, users are encouraged to submit feedback through the AIS portal and retain supporting documents, according to News18.
How can taxpayers avoid notices?
According to experts cited in the report, taxpayers should download AIS and compare it with Form 26AS, bank statements, salary slips and investment records before filing returns. Any mismatch should be checked carefully before final submission.
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They also advised taxpayers not to rely entirely on pre-filled ITR forms, as some details may still require manual verification. Keeping proper records of deductions, exemptions and financial transactions can help in responding to notices, if issued later.
The report added that AIS has become an important compliance tool for the Income Tax Department as authorities continue increasing data-based scrutiny during return assessments.
