As the Income Tax Return (ITR) filing season for FY 2026–27 gets underway, taxpayers may be tempted to rely heavily on pre-filled return details and quickly complete the filing process. However, tax experts warn that even a seemingly minor mismatch involving salary income, fixed deposit interest, or capital gains could later trigger an income tax notice.

The concern assumes greater significance as the Income Tax Department increasingly uses artificial intelligence-based risk assessment tools, automated data matching systems, and digital verification processes to identify inconsistencies in tax filings. As technology-driven scrutiny becomes more sophisticated, taxpayers are expected to ensure that income reported in their ITR aligns with information already available with the department.

At the center of this process is the Annual Information Statement (AIS), a detailed financial statement that captures a taxpayer's reported transactions and income details. It typically includes salary information, interest income, securities transactions, property dealings, taxes deducted, foreign remittances, and other financial activities.

While AIS has emerged as an important compliance tool, experts caution taxpayers against depending entirely on it while filing returns.

According to CA (Dr.) Suresh Surana, AIS should not be treated as the sole basis for preparing and filing ITRs.

"Taxpayers should not treat the Annual Information Statement (AIS) as the sole basis for filing their Income Tax Return (ITR), as the information reflected therein may at times be incomplete, duplicated, or subject to reporting errors," Surana said.

He added that taxpayers should reconcile AIS details with Form 26AS, Form 16/16A, books of accounts, investment records, bank statements, and other financial documents before submitting returns.

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The warning comes because AIS is based on data reported by employers, banks, mutual fund houses, stock brokers, registrars and other institutions. Reporting delays, duplication, or errors may sometimes result in discrepancies. If taxpayers fail to identify these differences before filing, automated systems could flag returns for further review.

Salary mismatch

Salary-related mismatches remain among the most common reasons behind tax notices.

Differences between salary disclosed in the ITR and figures reflected in Form 16, employer-filed TDS returns, or AIS records may prompt authorities to seek clarification. Such discrepancies can arise due to bonuses, revised salary structures, employer reporting corrections, or multiple job changes during a financial year.

If salary income appears under-reported compared to records available with the department, taxpayers could receive notices seeking explanations.

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FD and savings account interest

Interest income is another frequently ignored area.

Income earned from fixed deposits (FDs), recurring deposits (RDs), savings accounts, and even income tax refunds is often reported separately by financial institutions and reflected in AIS.

However, many taxpayers inadvertently omit such earnings while filing returns, particularly when interest amounts are spread across multiple bank accounts.

Partial disclosure or complete omission of interest income can create data mismatches that may later trigger tax department communications.

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Capital gains reporting

Capital gains reporting has become another key area under scrutiny.

Transactions involving shares, mutual funds, property sales, and other capital assets are often independently reported by brokers, registrars, and depositories. As a result, these transactions may already be visible in AIS.

Incorrect capital gains calculations, omission of sale transactions, wrong cost inflation adjustments, or errors in computing taxable gains can trigger scrutiny.

Tax experts note that while transaction values may appear in AIS, taxpayers remain responsible for accurately computing gains and disclosing them in the return.

High-value transactions and TDS mismatches

Apart from salary, FD interest and capital gains, discrepancies involving TDS credits or high-value transactions may also draw attention.

Large mutual fund investments, significant credit card spending, foreign remittances, property purchases, or securities transactions reflected in AIS but not matching declared income sources can create red flags.

Experts say taxpayers should carefully reconcile AIS with supporting financial records before filing returns, as a few additional checks now may help avoid notices and scrutiny later.