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:

• Misclassification of interest income

• Duplicate reporting in joint bank accounts

• 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:

• Your own bank statements

• Interest certificates

• 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:

Log in to the Income Tax e-filing portal

Go to the ‘Compliance’ section

Flag incorrect AIS entries

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:

• Thoroughly verify pre-filled data

• Review AIS and other related documents

• Provide feedback and clarifications

• Keep records ready in case of scrutiny

🚨 Consequences If Ignored

• ITR notices from the Income Tax Department

• Refund delays

• Loss of eligible deductions

• 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.