Income-tax Filing 2025 Why Verifying AIS is a Must Before Submitting Your ITR
Filing your Income-tax Return (ITR) for AY 2025–26?
Make sure to verify your Annual Information Statement (AIS) first. The AIS is not just a formality — it’s the backbone of your tax data. A mismatch here can lead to unwanted notices, delays in refunds, or even penalty proceedings.
Here’s why verifying AIS before filing your ITR is critical in 2025 — and how to do it right.
What is AIS in Income-tax Filing?
The Annual Information Statement (AIS) is a detailed record of your financial transactions compiled by the Income-tax Department. It covers:
- Interest income from savings accounts and FDs
- Mutual fund purchases and redemptions
- Stock market transactions
- Rent received (if TDS under Section 194-IB applies)
- Dividend income
- High-value credit card spends, cash deposits
- Foreign remittances and foreign travel expenses
- TDS/TCS data and refunds
👉 Accessible from the Compliance Portal (https://compliance.insight.gov.in)
Why AIS Verification is Crucial in AY 2025–26
1. Avoid ITR Mismatch Notices
If your ITR doesn’t match AIS data, the CPC may send you a notice under:
- Section 139(9) – defective return
- Section 143(1)(a) – proposed adjustment
- Section 148 – income escaping assessment
2. Refund Delays & Revisions
Mismatch between ITR and AIS can stall refunds until resolved. You may be forced to revise your return under Section 139(5).
3. Expanded AIS Coverage in 2025
The scope of AIS has grown post Budget 2024 to include:
- Insurance commission and maturity proceeds
- Crypto transactions
- Freelance and gig income under new compliance codes
(CBDT Notification No. 03/2025)
Step-by-Step: How to Verify AIS Before Filing ITR
- Log in to the Income-tax e-filing portal
- Navigate to: Services → AIS → Annual Information Statement
- Click on “Download” and select JSON or PDF format
- Cross-check:
- Interest income
- Dividend and rent
- Share/mutual fund sales
- Form 26AS vs AIS (minor variations expected)
- If any data is incorrect:
- Use the Feedback option in AIS portal
- Select reason (e.g. wrong value, duplicate, not pertaining to you)
Real-World Example
A Bengaluru-based consultant received ₹1.2 lakh freelance income in FY 2024–25. Though not mentioned in Form 16A, it was picked up in AIS through TDS under Section 194J.
She filed ITR-3 without reporting it, leading to a 143(1)(a) adjustment notice. Post-rectification, her refund was delayed by two months.
Expert View: One Key Tip
“Always reconcile AIS with Form 26AS and bank statements — especially if you earn from multiple sources or investments. AIS now tracks income beyond just TDS data.”
— Tax Partner, Starkbros Consultancy
AIS vs Form 26AS: What’s the Difference?
| Particulars | AIS | Form 26AS |
|---|---|---|
| Data Type | Income, investments, spends | TDS/TCS deducted and refunds |
| Source | PAN-linked info from multiple agencies | Deductor reports only |
| Level of Detail | Extensive (e.g. MF units, rent) | Limited to TDS/TCS |
| Can be corrected via | Feedback option | No direct feedback option |
Common AIS Errors to Watch For
- Duplicate entries: Same transaction reported twice
- Wrong PAN mapping: Someone else’s data showing up
- TDS mismatches: Difference between Form 16 and AIS
- Unreported incomes: Especially interest from FD, RD, or UPI cashback
✅ Always verify before hitting submit on your ITR.
FAQ: AIS in ITR Filing
Q1. Is AIS mandatory for ITR filing?
No, but ignoring it can lead to mismatches and penalties.
Q2. Can I ignore small interest entries in AIS?
Even small interest amounts must be reported to avoid mismatch notices.
Q3. What to do if AIS shows wrong data?
Use the feedback mechanism on the AIS portal with a valid reason.
Final Thoughts
Verifying your Annual Information Statement (AIS) is a crucial pre-ITR step in 2025. With more data sources being tracked than ever, overlooking it can be risky. Spend 10 minutes now to avoid weeks of correction later.
➡️ Need help verifying AIS or filing your ITR safely?
Contact Efiletax – trusted by 50,000+ Indian taxpayers for fast, compliant, and expert-backed filing.
Summary
Verify your Annual Information Statement (AIS) before ITR filing in 2025 to avoid mismatch notices, delayed refunds, and compliance issues. AIS now includes income, investments, and expenses. Cross-check it with Form 26AS and correct errors using the feedback tool.