Before filing your ITR, complete this 10-minute checklist to avoid an Income Tax notice

With the Income Tax Return (ITR) filing season underway, tax experts are urging salaried taxpayers not to rely solely on Form 16 while filing their returns. As the Income Tax Department increasingly uses the Annual Information Statement (AIS), Form 26AS and third-party data to verify returns, even small omissions can trigger an automated tax notice.

Experts say spending just 10 minutes reconciling your tax information before filing can significantly reduce the chances of receiving a notice later.

CA Aditya Sesh, Founder and Managing Director of Basiz Fund Services Pvt. Ltd., said Form 16 is only the starting point for filing an accurate return.

"Form 16 is a starting point, not a complete statement of taxable income. The Income Tax Department cross-references data from multiple sources before processing any return, so even accurately reported salary income can attract a notice if other income or transactions are missing from the filing," he said.

Your 10-minute ITR filing checklist

1. Download your AIS

The Annual Information Statement (AIS) contains details of your financial transactions, including interest income, dividends, securities transactions and other reported income. Review it carefully before filing.

2. Verify Form 26AS

Check whether all TDS deducted by your employer, banks and other deductors is correctly reflected in Form 26AS. Any mismatch could delay refunds or invite scrutiny.

3. Match Form 16 with AIS and Form 26AS

Ensure the salary income, TDS and deductions reported in Form 16 match the information available in AIS and Form 26AS.

4. Report all bank interest

Don't forget to include interest earned on savings accounts, fixed deposits and recurring deposits. Many taxpayers wrongly assume that TDS deducted by banks means the income need not be reported.

"The entire interest income must be included in the return, with TDS credit claimed separately," Sesh said.

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5. Declare dividend income

Dividend income reported by companies and mutual funds is available to the tax department. Ensure it is disclosed in your return.

6. Report capital gains

If you sold shares, mutual funds or property during the financial year, accurately compute and report capital gains, even if tax has already been deducted.

7. Verify TDS credits

Cross-check that the TDS claimed in your return matches the amount reflected in Form 26AS. Incorrect claims are among the common reasons for tax notices.

8. Review deductions and exemptions

Double-check deductions claimed under various sections and ensure you have supporting documents. Incorrect or excessive claims may attract scrutiny.

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Why this matters

According to Sesh, today's tax administration is heavily driven by data analytics, making it easier for the department to identify inconsistencies.

"A simple pre-filing compliance check can prevent most notices. Every salaried taxpayer should begin by downloading and carefully reviewing the Annual Information Statement (AIS), then comparing it against Form 26AS and matching both with Form 16," he said.

He added that taxpayers should also verify bank interest, dividend income, capital gains and rental income, ensure TDS credits are correctly reflected, and submit feedback through the AIS portal if any information is inaccurate before filing the return.

"A few minutes spent on this reconciliation can prevent months of correspondence with the tax department," Sesh said.

As the Income Tax Department continues to strengthen its technology-driven compliance framework, experts say a careful review of all tax records—not just Form 16—can help salaried taxpayers avoid unnecessary notices and ensure a smoother ITR filing experience.

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