Income Tax Department Clarifies Notices on ITR Filing for AY 2025-26

As the Income Tax Return (ITR) filing season for Assessment Year 2025-26 progresses, many taxpayers have received unexpected messages and communications from the Income Tax Department. These alerts, often related to mismatches between reported income and data available with the department, have prompted questions and confusion among taxpayers.

In response, the Income Tax Department has issued clear explanations on what these messages mean, why they are being sent, and how taxpayers should appropriately respond. Here’s what you need to know.

Why Taxpayers Are Receiving These Messages

Taxpayers have been receiving messages, emails, or notifications from the Income Tax Department indicating a mismatch between the income or tax details filed in the return and the information available from third-party sources such as:

• Form 26AS (tax credit statement)
• Annual Information Statement (AIS)
• Employer TDS details
• Bank interest and other financial data

These communications are not demands for additional tax immediately, but rather alerts designed to help taxpayers identify inconsistencies before they finalize or file their returns.

What the Income Tax Department Clarifies

The Income Tax Department has emphasized the following points:

1. Messages Are Advisory, Not Penalty Notices
   Many of the alerts simply highlight that certain incomes or tax credits reported by third parties (employers, banks, financial institutions) do not match what has been entered in the ITR draft. These are clarifications rather than assessments.
2. Purpose Is to Help — Not to Scare
   The department clarified that these messages are intended to help taxpayers correct genuine mistakes in their ITR before submission, thereby reducing the chances of future notices, scrutiny, or adjustments.
3. No Immediate Action Is Required Unless You Choose to Act
   Unless the taxpayer agrees there is a discrepancy, no immediate penalty or action will be taken. The messages serve as an early alert so that taxpayers can verify and rectify data if needed.
4. Matching with AIS and 26AS Is Important
   Verifying figures against your Annual Information Statement (AIS) and Form 26AS helps ensure that incomes such as salary, interest, dividends, rental receipts, or capital gains are correctly reflected in your return.

How to Respond if You Receive a Mismatch Message

If you have received a communication about a possible mismatch, follow these steps:

1. Verify with AIS and Form 26AS

Check your AIS and Form 26AS in the e-filing portal. These documents show the income and tax credits reported by third parties. Compare them with your ITR data carefully.

2. Correct Before Filing

If any income or tax credit entries are missing or incorrect in your ITR form, update them before submitting the return. Correct reporting ensures accurate tax computation.

3. Save Supporting Documents

If you agree with the details in AIS/26AS and update your ITR accordingly, keep relevant supporting documents (salary slips, bank interest certificates, TDS certificates). These may be needed if the tax department later conducts an assessment or review.

4. No Need to Panic

If you have already filed and later receive a notification about a mismatch, review your filed return versus AIS/26AS. If you find an error, you may consider filing a revised return within the allowed timeline.

Common Causes of Mismatches

Some of the frequent reasons for data mismatches include:

• Employers reporting income or TDS differently than expected
• Banks reporting interest income that was not included in ITR
• Multiple income sources (e.g., freelance income or rental income) not jointly captured
• Differences in PAN details or tax deduction data

Often, a mismatch is because of omission or oversight, rather than deliberate misreporting.

Important Points for AY 2025-26 ITR Filing

As you file returns for AY 2025-26 (financial year 2024-25):

• Cross-verify income details early to avoid last-minute corrections
• Use the AIS and Form 26AS to guide your ITR entries
• Remember that mismatch alerts are informative and not punitive
• Keep documentation handy for reconciliation or future reference

The Income Tax Department’s current messaging system is part of a broader effort to improve compliance by providing real-time insights to taxpayers so they can self-correct genuine discrepancies.

Conclusion

Receiving a message from the Income Tax Department about a possible mismatch can be unsettling, but it is not a cause for alarm. These communications are designed to help taxpayers file accurate returns and avoid future notices or disputes. By reviewing your AIS and Form 26AS carefully and updating your tax return where needed, you can ensure your return is consistent, complete, and compliant.

The overarching message from the Income Tax Department is clear: these alerts are supportive tools to empower taxpayers — not automatic triggers for penalties or enforcement action.