Income tax department flags ITR-AIS mismatch emails, explains how taxpayers should respond

The income tax department has clarified the intent behind a recent wave of automated emails received by taxpayers, many of which raised concerns over mismatches in reported financial transactions.

On December 18, 2025, the tax department said it had taken note of multiple references from taxpayers seeking clarity on these communications.

Income Tax India stated that “such communication is to facilitate the taxpayers & make them aware of the information available with the ITD regarding the transactions reported by the Reporting Entities during the year.” The department clarified that these messages are based on data received from banks, financial institutions, and other reporting entities.

The advisory has been sent only in cases where the department has identified an apparent mismatch. “The communication is just an advisory sent in only those cases where there is an apparent significant gap between disclosures in the ITR & information as received from the Reporting Entities,” Income Tax India said.

Officials emphasised that the primary objective is to allow taxpayers an opportunity to voluntarily review and correct their filings. “The objective of the communication is to provide an opportunity to taxpayers for voluntary correction by reviewing their AIS & facilitate them to provide their feedback online on the Compliance Portal of the Income Tax Department,” the department noted.

Taxpayers have been advised to examine their Annual Information Statement (AIS) and take corrective action where necessary. This may include revising an already filed return or filing a belated return if no return has been filed so far.

However, taxpayers whose filings are accurate and aligned with the information available with the department may ignore the communication. The ITD reiterated that the initiative is part of its ongoing efforts to encourage voluntary tax compliance and reduce future disputes.

1. Why am I receiving an Income Tax email about AIS mismatch?

The email is an automated advisory sent when there is an apparent gap between ITR disclosures and transaction data reported by third-party entities.

2. Is the AIS mismatch email a notice or penalty?

No. Income Tax India has clarified that the communication is only an advisory and not a notice, scrutiny, or penalty action.

3. What transactions are covered under these AIS mismatch emails?

These include property transactions, foreign income, foreign assets, high-value purchases like cars, and other reportable financial activities.

4. What should taxpayers do after receiving the email?

Taxpayers should review their AIS, provide feedback on the Compliance Portal, revise their return, or file a belated return if required.

5. What is the last date to revise or file a belated return for AY 2025-26?

The deadline is 31 December 2025, as stated by Income Tax India.