Before filing income tax returns, taxpayers must gather essential documents including PAN card, Form 16, Form 26AS, and AIS. As reported by Mint, Form 16 serves as a tax deducted at source certificate issued by employers, containing details of salary paid and TDS deducted during the financial year. Form 26AS is a consolidated Annual Information Statement showing TDS deducted, advance tax paid, self-assessment tax, and high-value transactions linked to PAN. The AIS provides a detailed summary of salary income, interest income, dividend income, securities and mutual fund transactions, foreign remittances, and more. Taxpayers should also keep statements from all savings and current accounts ready to verify interest income, cash deposits, and financial transactions. Additional documents include monthly salary slips for cross-checking salary income, allowances, and reimbursements, home loan interest and principal repayment certificates for tax benefits, and rent receipts for claiming House Rent Allowance (HRA). For investment proofs, taxpayers need documents for ELSS investments, PPF contributions, life insurance premiums, tax-saving fixed deposits, and health insurance premiums.
Tax experts are cautioning against relying entirely on the Annual Information Statement (AIS) for Income Tax Return filing, warning that such reliance could trigger income-tax notices due to potential errors in the system. According to Mint, taxpayers should not treat AIS as the sole basis for filing their ITR, as the information reflected therein may be incomplete, duplicated, or subject to reporting errors. CA Dr Suresh Surana emphasizes that taxpayers should carefully reconcile the details appearing in the AIS with their books of accounts, bank statements, Form 26AS, Form 16/16A, investment records, and other supporting financial documents before filing the return. Any discrepancy identified during such reconciliation should be appropriately examined and addressed through accurate disclosure in the ITR or supported with adequate documentation to minimize scrutiny risks.
Several types of mismatches in AIS can lead to scrutiny or post-filing notices that taxpayers should be aware of. As reported by Mint, where salary income reported in the ITR differs from the salary disclosed in Form 16, TDS returns filed by the employer, or reflected in AIS, the department may seek clarification regarding any under-reporting of income. Interest earned on savings bank accounts, fixed deposits, recurring deposits, and income tax refunds often appear in AIS based on reporting by banks and financial institutions, but non-disclosure or partial disclosure may result in mismatch notices. Claiming excess Tax Deducted at Source (TDS) or Tax Collected at Source (TCS) credit that does not reconcile with Form 26AS or AIS may lead to adjustment of refund claims or issuance of notices seeking justification. Large mutual fund investments, purchase or sale of immovable property, substantial credit card payments, foreign remittances, or securities transactions reflected in AIS but not aligned with declared sources may attract scrutiny, as can incorrect calculation or omission of capital gains in ITR.
GST data matching has become a critical area for scrutiny, particularly affecting businesses and professionals. According to Mint, where turnover reported in GST returns (such as GSTR-1 or GSTR-3B) is significantly higher than the turnover or gross receipts disclosed in the ITR, the tax department may identify the discrepancy through data matching mechanisms. Such differences may trigger scrutiny, particularly for businesses and professionals, unless adequately supported by valid reasons. Apart from AIS, turnover reflected through GST filings, TDS under business-related sections, or reported financial transactions that materially differ from income disclosed in the return may raise red flags. As the Income-tax Department has started to increasingly rely on automated data matching, artificial intelligence-based risk assessment, and system-driven verification processes, it has become important for ITR filers to cross-check their data and provide only correct information in their returns to avoid notices.
The income tax return filing season for assessment year 2026-27 has officially commenced with the tax department releasing Excel utilities for ITR-1 and ITR-4, enabling taxpayers to begin preparing their returns. According to reports from Mint, salaried individuals and non-audit cases for FY 2025-26 must file ITR by 31 July 2026, unless extended. However, taxpayers who miss this deadline can still submit a belated return by 31 December 2026, though along with a late fee. For AY 2026-27, ITR-1 (Sahaj) has been updated to widen eligibility for salaried taxpayers while simplifying reporting requirements, with income up to ₹50 lakh and up to 2 house properties now eligible. The filing process comes with higher disclosures, enhanced data validations, and increased probability of inspection, making accuracy crucial from the start. As per official Income Tax Department guidelines (2026), taxpayers typically have until 31st December of the assessment year to file a revised return for the previous financial year, making preparation and accuracy crucial from the start.
