ITR Filing 2025 Alert: AIS Data Mismatch May Trigger Tax Notices – Here's How to Stay Safe, Say Experts
As the ITR filing season for Assessment Year 2025–26 is underway, taxpayers—especially small filers using ITR-1—are facing a growing challenge: discrepancies in the Annual Information Statement (AIS). Experts warn that such mismatches can lead to automatic tax notices, delayed refunds, and unnecessary compliance burdens.
📌 Why This Is Happening: AIS Glitches on the Rise
According to CA Kinjal Bhutta, Treasurer of the Bombay Chartered Accountants Society (BCAS), there has been a noticeable surge in incorrect entries and duplication in the AIS data this year.
Common issues include:
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Misclassification of interest income
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Duplicate reporting in joint bank accounts
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Inflated interest amounts due to technical glitches or inaccurate SFT (Statement of Financial Transactions) reporting by banks and post offices.
⚠️ Mismatch Could Lead to Auto-Generated Notices
Sandeep Sehgal, Tax Partner at AKM Global, cautions that any mismatch between your AIS and your ITR can trigger an auto-generated notice from the Income Tax Department.
“This adds unnecessary compliance pressure, especially on small taxpayers,” he said.
💡 Expert Advice: Don’t Rely Blindly on AIS
Tax experts stress that AIS is not always complete or accurate. Many exempt incomes, such as savings account interest below the threshold or tax-free income, may not appear in AIS.
✅ Tip: Always compare AIS data with:
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Your own bank statements
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Interest certificates
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Investment account summaries
Maintain documentation for any income or discrepancy you report in your ITR.
🔄 Fix AIS Errors Proactively
If you spot inaccuracies, take immediate action:
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Log in to the Income Tax e-filing portal
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Go to the ‘Compliance’ section
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Flag incorrect AIS entries
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Submit manual corrections and feedback
“Timely reconciliation helps avoid rejection of valid deductions or refund delays,” adds Sehgal.
🧾 Duplicate Entries Are Common This Year
Experts have observed a rise in repeated income entries, especially interest earnings. Taxpayers should manually verify all sources of income and deduct duplicates if needed.
⏳ Still Have Time – Use It Wisely
With the ITR deadline now extended to September 15, 2025, taxpayers should:
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Thoroughly verify pre-filled data
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Review AIS and other related documents
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Provide feedback and clarifications
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Keep records ready in case of scrutiny
🚨 Consequences If Ignored
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ITR notices from the Income Tax Department
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Refund delays
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Loss of eligible deductions
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Unwanted compliance hassles
✅ Bottom Line
Don't blindly trust AIS. Cross-verify. Rectify. Submit accurate information.
By taking a few simple but critical steps now, you can avoid unnecessary notices and enjoy a smoother, stress-free ITR filing experience in 2025.
