Check Your AIS Before Filing ITR, Ignoring Mismatches Could Lead To Tax Notices, Penalties & Refund Delays

Mumbai: As the deadline for filing Income Tax Returns (ITR) approaches, tax experts are urging taxpayers to carefully review their Annual Information Statement (AIS) before submitting their returns.

Any error or mismatch in the AIS can result in incorrect income reporting, delayed tax refunds and even notices from the Income Tax Department. Experts say matching AIS data with personal financial records has become an essential step in the tax filing process.

What Is AIS?

The Annual Information Statement is a detailed document that contains financial information linked to a taxpayer's PAN.

It includes details such as:

- Salary income

- Bank interest earnings

- Dividend income

- Share market transactions

- Mutual fund investments

- Tax deducted at source (TDS)

- Property transactions

- Foreign remittances and investments

- Other high-value financial transactions

The Income Tax Department uses this information to verify the details reported in a taxpayer's ITR.

Common Reasons for AIS Mismatches

Experts say discrepancies can occur for several reasons.

Some common causes include:

- Incorrect or delayed TDS reporting by banks or employers

- Duplicate reporting of the same transaction

- Transactions from joint accounts being linked to the wrong PAN

- Interest income or dividends not reported in the ITR

- Differences between AIS, Form 26AS and Form 16

- Capital gains reported in the wrong financial year

- Data entry errors by financial institutions or companies

Such mismatches can create problems during return processing.

What To Do If You Find Errors

Taxpayers can report incorrect information directly through the income tax portal.

The system allows users to mark a transaction as:

- Incorrect

- Duplicate

- Linked to another PAN

- Non-taxable

- Related to a different financial year

According to tax expert Rakesh Goyal, the information may not be corrected immediately, but the feedback is recorded and can be considered during future assessments.

How To Submit AIS Feedback

Taxpayers can follow these simple steps:

Log in to the income tax e-filing portal.

Open the AIS section.

Select the transaction in question.

Click on the “Feedback” option.

Choose the appropriate category of error.

Submit the feedback.

Risks of Ignoring AIS Mismatches

Failure to address AIS discrepancies can trigger scrutiny from the tax department.

Taxpayers may receive notices under:

- Section 143(1)(a) for income or TDS mismatches

- Section 139(9) if the return is considered defective

- Section 148 in cases involving suspected underreporting of income

This could lead to additional tax demands, penalties, delayed refunds and further investigation.

Early Verification Can Reduce Tax Risks

Experts say India's tax system is now highly data-driven, making AIS verification more important than ever.

Tax experts advise taxpayers to check AIS carefully and provide feedback wherever necessary. Doing so can help prevent notices, avoid refund delays and ensure a smooth tax filing experience.

For taxpayers, reviewing AIS before filing an ITR is no longer optional—it is a crucial step toward accurate and hassle-free tax compliance.