For AY 2026-27, the ITR filing due date depends on which form you file:
- July 31, 2026 — ITR-1 or ITR-2: Salaried individuals and others with salary, pension, house property, or other-sources income, and no business or professional income.
- August 31, 2026 — ITR-3 or ITR-4: Freelancers, consultants, and small business owners who are not liable for a tax audit. This is a new extra month for this category.
- October 31, 2026 — Audit-liable taxpayers: Broadly, businesses with turnover above ₹1 crore (or above ₹10 crore where cash receipts and payments are each 5% or less of the total), and professionals with gross receipts above ₹50 lakh. The audit report itself is due by September 30.
Whichever date applies to you, blindly hitting "submit" on pre-filled ITR data is a massive risk this year.
The Annual Information Statement (AIS) draws on data reported to the tax department by banks, brokers, property registrars, and crypto exchanges under the Statement of Financial Transactions (SFT) framework. If what you declare in your ITR does not match the department's AIS data, it can result in a Section 143(1) processing adjustment, a request for clarification, or closer scrutiny of the return.
Here is what you need to look out for and exactly how to handle discrepancies before your deadline.
What is Triggering the AIS in 2026?
The Statement of Financial Transactions (SFT) forces third-party entities to report your financial behavior directly to the tax department. For FY 2025-26, your AIS will automatically flag your account if you crossed these specific thresholds:
- Cash Deposits: Exceeding ₹10 lakh in savings accounts (reported by banks and post offices).
- Credit Cards: Bill payments exceeding ₹1 lakh in cash, or ₹10 lakh via any mode.
- Investments: Mutual fund or stock purchases exceeding ₹10 lakh in a financial year.
- Real Estate: Purchase or sale of immovable property exceeding ₹30 lakh.
- Digital Assets: Specified virtual digital asset transfers (reported by Indian crypto exchanges).
Form 26AS vs. AIS: Which One Wins?
Many taxpayers get confused when their TDS credit in Form 26AS doesn't match their AIS. Here is the golden rule for AY 2026-27:
TDS credit is governed by Form 26AS, but income completeness is governed by AIS.
You can only claim the exact tax credit shown in Form 26AS. However, you must declare all the income shown in your AIS. For example, your bank might report a high-value mutual fund purchase in your AIS, but because there is no TDS on the purchase itself, it won't show up in your Form 26AS. You still need to ensure your declared income can justify that purchase.
"TDS was already deducted on this, so it must already be accounted for." Not necessarily. TDS only confirms tax was withheld on a specific payment — it says nothing about whether the underlying income was fully declared. AIS entries with no TDS attached (like most mutual fund and property purchases) still need to be reported.
The Discrepancy Strategy
If your AIS shows income you didn't earn, or double-counts a transaction, do not just file your ITR and hope for the best. You must correct the record, but you also cannot afford to miss your applicable deadline. Here is the protocol:
Step 1: Download and Cross-Match
Log into the e-filing portal, navigate to the AIS tab, and download your statement for FY 2025-26. Line up every entry in Part B against your physical documents: your Form 16, bank statements, broker contract notes, and mutual fund capital gains statements.
Step 2: Submit Categorized Feedback to Create a Trail
If you spot an error, click the Feedback button next to the transaction directly in the portal. You must select one of the official categories (e.g., "Information is duplicate" or "Information is denied"). This creates a digital footprint showing you actively disputed the third-party data.
Step 3: File Immediately Using Your Correct Figures
Earlier in the year, we advise clients to wait for the Taxpayer Information Summary (TIS) to update after submitting feedback. Do not do this if your deadline is close. The income tax portal is under heavy load during peak filing weeks, and backend updates can take time. ITR-1/ITR-2 filers approaching July 31 have the least room to wait; ITR-3/ITR-4 non-audit filers, who have until August 31, have more room but should still not assume the TIS will update in time.
If you have solid, documentary proof (like a bank statement or registered sale deed) that the AIS is wrong, submit the feedback, but file your ITR immediately using your correct, actual figures rather than waiting on the portal to catch up. Keep your documentation safe in a folder; if the department sends a preliminary notice regarding the mismatch, you will simply reply with the proof.
5 "Gotchas" to Watch Out For Before You File
- Cumulative FD Interest: Banks report the yearly accrued interest on cumulative Fixed Deposits in your AIS, even if you haven't received the cash payout yet. You must declare this accrual-based figure under "Income from Other Sources," not just the TDS deducted.
- Forgotten Dividends: Because dividend income is now fully taxable, every ₹50 or ₹100 dividend payout from your demat account is tracked and recorded in the AIS. Ensure these small amounts are added up in your return.
- Property Stamp Duty Mismatches: If you sold a property, the registrar reports the stamp duty value. If your actual sale consideration was lower than the stamp duty value, you need to ensure the capital gains computation in your ITR properly reflects Section 50C rules.
- Joint Account and Joint Property Attribution: If a property was sold jointly, the buyer's TDS filing sometimes reports the full sale value against one PAN instead of splitting it proportionately between co-owners. The same can happen with joint bank accounts. Verify your AIS reflects only your actual share, and file feedback if the full amount is attributed to you alone.
- Off-Market Transfers Misread as Sales: Share transfers made outside a stock exchange — including gifts and inherited shares — can appear in your AIS as if they were taxable sales. Genuine gift or inheritance transfers are generally not taxable events; check the transaction type before assuming a capital gain applies.
Our income tax advisory team assists with AIS reconciliation, high-value SFT transaction review, and capital gains computation. Contact us if you'd like help before the deadline.