Even if AIS and Form 26AS data match, you could still receive an income tax notice; here are 5 major reasons..

ITR Filing 2026: Before filing their Income Tax Return (ITR), most taxpayers reconcile their data with the AIS (Annual Information Statement) and Form 26AS. However, even if the data in these documents matches perfectly, one might still receive a notice from the Income Tax Department.

Form 26AS primarily contains details regarding TDS, TCS, advance tax, and self-assessment tax. In contrast, the AIS includes various financial records linked to the PAN, such as salary, interest, dividends, share and mutual fund transactions, and property dealings.

According to tax experts, while reconciling the AIS and Form 26AS is essential, doing so alone does not guarantee immunity from receiving a notice.

5 Major Reasons for Receiving a Notice

Incorrect Information in ITR: Even if the AIS and Form 26AS are accurate, a notice may be issued if details regarding salary, interest, dividends, or capital gains are reported incorrectly or incompletely in the ITR.

Reporting Income Under the Wrong Head: The department may raise queries if, for instance, capital gains are reported under 'Income from Other Sources' or business income is shown under a different head.

Claiming Excessive Deductions: Unusually large claims for deductions under sections like 80C or 80D, or for HRA, home loan interest, or capital gains exemptions, can trigger scrutiny.

High-Value Transactions: A notice may be issued if large bank deposits, property deals, investments in shares or mutual funds, foreign remittances, or substantial credit card spending do not align with the declared income.

Discrepancies in TDS Credit: Discrepancies between the claimed TDS and the department's records can lead to a notice or an adjustment during the processing of the return.

What Should You Check Before Filing ITR?

Merely reviewing the AIS and Form 26AS before filing your ITR is insufficient. You must also cross-check Form 16 and verify your salary slips. Examine your bank statements and reconcile capital gains statements with broker reports.

If you have a home loan, check the interest certificate as well. Additionally, verify all investment-related documents and tax challans. If you have foreign income or foreign assets, carefully cross-check all related records as well.

What to do if you receive a notice?

First, read the notice carefully and reconcile it with your ITR, AIS, Form 26AS, and other documents. If your return is correct, submit a response with all necessary supporting evidence within the stipulated timeframe. If an error has occurred, it is best to rectify it promptly by filing a revised ITR or following the appropriate procedure.

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