Income Tax Return Filing FY2024-25: A discrepancy can occur in the Annual Information Statement (AIS) of taxpayers, in which it reflects additional interest income that was not included in the original
income-tax return filed for the financial year 2024-25. If this kind of situation arises, experts advise taxpayers to file a revised tax return on or before December 31, 2025.
The AIS is compiled based on information reported by banks and other financial institutions, and any mismatch between the tax return filed and the AIS may trigger automated notices or scrutiny at a later stage, delay in refunds, interest liability, or penalty for under-reporting of income, told Prashant Thacker, CA (Partner at Thacker & Associates). “Even if the overall tax impact is zero/nil, revising a tax return ensures compliance,” he added.
Verify Interest Income With Banks Before Revising Return
Before filing the revised tax return, taxpayers should verify the amount first with the bank or financial institutions to confirm the actual interest earned during the relevant financial year. Since AIS data is based on reporting by banks and other entities, differences may arise due to timing issues, duplication, or reporting errors, explained Preeti Sharma, Partner – Global Mobility Services, Tax & Regulatory Advisory, BDO India.
Thacker also added that one should verify whether the interest income actually pertains itself and that there is no discrepancy. “If the income is genuine and was omitted earlier, voluntarily filing a revised income-tax return helps to ensure compliance and reflects bonafide conduct. However, if the income is AIS is incorrect or duplicated, appropriate feedback should first be submitted on the AIS portal for correction,” he added.
If the interest income reflected in the AIS is correct and was not reported in the originally filed return, a revised return should be filed to include such income, along with payment of applicable tax and interest. However, the deadline to file this revised return for Financial Year 2024-25 is ending 31st December.
Filing a revised tax return will ensure alignment between the return and the information available with the tax authorities, thereby reducing the risk of adjustments or follow-up queries during processing. Where the interest income has already been correctly disclosed in the return, no revision is required merely because it appears separately in the AIS.
Revised Return Vs AIS Feedback: What to Choose and When
However, if the AIS reflects incorrect, duplicate, or overstated interest income, taxpayers should not revise their return based on inaccurate data, warned Sharma. “Instead, they should submit feedback through the AIS correction mechanism. This involves logging into the income-tax portal, selecting the relevant AIS entry, marking it as ‘information is incorrect’ or ‘partially correct’, and providing appropriate feedback or remarks. The reporting entity, such as the bank, can then review and correct the information, following which the AIS is updated,” She added.
