Why AIS–ITR Mismatch Emails From Income Tax Department Are Worrying Taxpayers, Expert Weighs In

Why AIS–ITR Mismatch Emails From Income Tax Department Are Worrying Taxpayers, Expert Weighs In


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An experienced chartered accountant’s notes on the flagged mismatches raised through bulk emails by the income tax authorities.

The flagged transactions fell under the tax expert’s scrutiny. (Representative Image)

As the Income Tax Department flagged the mismatches between reported income in the income tax refunds and transactions shown in AIS, tax expert Abhas Halakhandi spoke about the bulk emails sent by the authorities and the “unnecessary panic” they’ve caused.

For beginners, the AIS or Annual Information Statement is an essential document providing thorough information about a taxpayer during a financial year. According to Halakhandi, however, the flagged transactions by the income tax authorities include property or vehicle purchases that aren’t income-related in many cases.

Tax Expert On Flagged Transactions

“This, in many cases, includes transactions not relevant to the reported income, such as the purchase of property or vehicles. Such acquisitions may be made out of accumulated savings, loans, gifts, or past income and there is no requirement or specific place in the ITR to report these as income,” Halakhandi wrote on X this Tuesday, December 16.

For Halakhandi, who is a chartered accountant serving MSME units, the inclusion of such capital transactions in bulk mismatch notices and emails has caused “unnecessary panic.”

“While information like cash deposits/withdrawals may be relevant for verification but including irrelevant capital transactions in bulk mismatch mails creates unnecessary panic and trust issues among compliant taxpayers!” he wrote while tagging the Income Tax Department online.

In his post shared online, Halakhandi shared two screenshots of an email flagging a mismatch in the ITR and AIS data. One of the grabs had an email warning the concerned taxpayer, “You are required to revise your ITR by Dec. 31, 2025.” The other screenshot had the tax officials flagging a transaction worth Rs 4.9 crore. According to the Income Tax Department, it was a “high-value transaction” that was “inconsistent” with the income that the concerned taxpayer reported during the return filing.

People Suspect AI Automation Glitch

A fellow chartered accountant, Avneesh Malik, reacted to the post and revealed that his company received similar AIS-ITR mismatch emails. “…We have re-checked the information and told all our clients no need to worry about this. The income tax department email is designed like: We will pick your case for detailed scrutiny. Our view is clear, if a person pays all his tax diligently and files his or her return properly, for many years then he or she doesn’t need to worry about anything,” he wrote.

A taxpayer, Sujeet Jha, also entered the discussion after saying that he, too, received similar emails last year. However, the issue was resolved after the first hearing. “I got this last financial year and it was solved on the 1st hearing after showing the sale of the flat and buying another flat with the same money…,” he mentioned.

Reacting to the issue raised by Halakhandi, a person claimed these emails reflected “mindless bureaucratic inceptions just to delay refunds.” Others suspected it to be a glitch in the technical framework and a byproduct of AI automation.

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