The Triple Threat: AIS, TIS, and Form 26AS
The most significant source of ITR errors today is the mismatch between the information you declare and the data the Income Tax Department already has. The department compiles your financial footprint into three key documents: the Annual Information Statement
(AIS), Taxpayer Information Summary (TIS), and Form 26AS. Think of these as the government's report card on your finances for the year. They list everything from salary and TDS (Tax Deducted at Source) to interest income, dividends, and high-value transactions like property sales. Ignoring these documents is a cardinal sin of tax filing. An error is almost guaranteed if the income you report doesn't align with what's in your AIS. For instance, if your bank reports interest income of ₹15,000 but you only declare ₹10,000, an automated system will likely flag the discrepancy, triggering a notice. Before you even start filling out your ITR form, your first step should be to download and meticulously review these statements from the e-filing portal.
Trust but Verify Pre-filled Information
The e-filing portal's pre-filled ITR forms are a convenient feature, pulling data directly from sources like your employer and your AIS. However, treating this pre-filled information as infallible is a common and costly mistake. The data can be incomplete or even incorrect. For example, it might not capture income from a job you left mid-year or may contain duplicate entries for a single transaction. The responsibility to ensure the accuracy of the return lies solely with you, the taxpayer. Use the pre-filled form as a starting point, not the final word. Cross-verify every single entry with your personal records—your salary slips, bank statements, and investment reports. Correct any inaccuracies and fill in any missing information before submission. Blindly accepting the pre-filled data without validation is like signing a contract without reading it.
The Forgotten Income in Your Bank Statements
One of the most frequently ignored data sources is the humble bank statement. Many taxpayers diligently report their salary but forget the small streams of 'other income' that accrue in their bank accounts. This includes interest earned from savings accounts, fixed deposits, and recurring deposits. While interest from a savings account is deductible up to ₹10,000 under Section 80TTA, it must first be declared as income. Banks report this interest payment to the tax authorities, and it will appear in your AIS. Failing to declare it in your ITR is a direct mismatch that the system is designed to catch. Go through the annual statements for all your bank accounts, including those you don't use often. Total up all interest credits and ensure this figure is correctly reported under the 'Income from Other Sources' schedule.
Capital Gains and Other Overlooked Transactions
Capital gains from selling stocks, mutual funds, or property are another area where ignored data leads to errors. Many people assume that if no tax was deducted at source, the income doesn't need to be reported. This is incorrect. Every sale transaction, whether at a profit or a loss, must be reported. Your broker provides a capital gains statement summarizing these transactions, and this data is also fed into your AIS. Ignoring this statement and failing to report these gains can lead to scrutiny. Similarly, other data points like rental income, even from a property you sublet for a few months, or income from a small freelance project must be declared. The key is to gather all relevant statements—from your broker, your bank, and your tenants—and ensure every financial event of the year is accounted for.
