Net interest? Skipped rent? These 10 AIS mistakes could trigger I-T scrutiny this year

An Indian taxpayer was hit with an income tax notice for not declaring just ₹5,000 in interest. The reason? A mismatch in the government’s Annual Information Statement (AIS), which now scans and matches nearly every financial detail—from savings account interest to rent, stock trades, and even foreign spending.

Sujit Bangar, founder of TaxBuddy.com, broke down 10 high-risk AIS mismatches that increasingly trigger automated scrutiny under Section 143(1)(a) of the Income Tax Act.

One of the most common mistakes: netting off interest or dividend income instead of reporting it gross. “Report gross FD/RD/savings interest in Schedule OS. Match TDS in Schedule TDS; don’t net off,” Bangar advised in a LinkedIn post.

Inaccurate reporting of stock or mutual fund sales is another red flag. Taxpayers often miss gains/losses tied to small trades or corporate actions. “Use AIS/SFT trade lines to ensure every sale has a gain/loss entry,” he noted.

Other frequently flagged items include:

• Dividend income mismatches, especially where net and gross figures differ.
• TDS on rent, which must be reflected in Income from House Property if tenants have deducted tax.
• Interest on tax refunds, which is taxable but often overlooked under “Other Information.”
• Mismatch in GST turnover vs ITR filings, particularly for business filers using ITR-3 or ITR-4.
• Cash or time deposits, which must tie back to income, loans, gifts, or maturity proceeds.
• Foreign transactions, including credit card spends under LRS, which trigger TCS and asset disclosures.
• Property transactions, requiring sale reporting in Schedule CG or asset declaration if thresholds are crossed.

High-income individuals (earning over ₹1 crore in AY 2025–26) must also fill Schedule AL (Assets and Liabilities), which tracks year-end values of homes, vehicles, large deposits—even if they’re not “income.”