If the data filed in your return does not match the AIS data, the system flags you as high-risk.
Nidhi | Dec 8, 2025 |
Avoid Surprise Tax Notices From Income Tax Department: Understanding AIS and TIS-Based Notices
The Income Tax Department issues notices for many reasons, including errors, mismatches, or non-compliance in their income tax return. In recent years, the Department has become more data-driven, making it easier to track each financial transaction you make. Sometimes, the income tax notices are triggered by the AIS (Annual Information Statement) and the TIS (Taxpayer Information Summary). Many taxpayers ignore these documents until they receive a notice from the Income Tax Department.
The Annual Information Statement (AIS) is a detailed report given by the income tax department to the taxpayers, which includes a consolidated view of all their financial transactions during a financial year.
The TIS (Taxpayer Information Summary), on the other hand, is a simplified, category-wise summary of the taxpayer’s financial transactions for a financial year.
The AIS includes information such as:
If the data filed in your return does not match the AIS data, the system flags you as high-risk. For example, you have sold a property but did not report the capital gains, or you have deposited a large amount of cash but have declared a low income. If the TIS shows income higher than what you have declared, there are chance you will receive the Income Tax Notice.
Here are the most common reasons one can receive an income tax notice:
Form 26AS shows details about the TDS, TCS, advance payment, refund details, etc. Many individuals think that Form 26AS captures everything, which is wrong. AIS captures the full picture, including the high-value transactions, SFT reports, and even credit card spends above Rs. 1 lakh. Many get notices despite matching 26AS perfectly.
The Income Tax Department allows taxpayers to give feedback on the information displayed in AIS. Taxpayers can report any discrepancies or incorrect information in their financial data. You can agree or disagree, or partially agree with the AIS data. An earlier feedback reduced the chances of receiving a notice. However, if you ignore the wrong data and do not give any feedback, the income tax department will issue notices demanding tax along with a penalty.
Many individuals never go through the AIS and do not give this feedback. They blindly file a return from Form 26AS, which can be a costly mistake. Therefore, taxpayers must always cross-check the data in AIS.
In recent years, the notices have increased because multiple entities like banks, brokers, and even foreign remittance portals now automatically report to AIS. Manual concealment is becoming almost impossible, as everything is being tracked electronically.
To avoid an AIS-based notice, always:
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