Records, Mismatches and Tax Notices

Why taxpayers receive notices, how to check your Annual Information Statement for mismatches, and how to respond calmly and on time.

Receiving a tax notice can be alarming, but many notices are routine and can be resolved simply.

Why notices happen

Mismatches between your return and the Annual Information Statement (AIS) or Form 26AS, such as unreported interest, dividends or share sales.
Arithmetic errors.
Claims that need verification, such as large deductions or refunds.
High-value transactions, like property purchases or large cash deposits.
Non-filing when your income required a return.

Check before filing

Review your AIS and Form 26AS on the tax portal.
Match every income source: salary, interest, dividends, capital gains and rent.
If the AIS shows something incorrect, you can give feedback on the portal.

Common notices

Intimation after processing: shows adjustments or demands after your return is processed.
Defective return notice: asks you to fix errors.
Scrutiny notices: detailed examination, less common.

How to respond

Read carefully and note deadlines.
Respond online through the e-filing portal.
Provide documents and explanations.
Seek help from a chartered accountant for complex cases.
Beware of fake notices sent by scammers; verify on the official portal.

Records to keep

Salary slips and Form 16.
Bank and investment statements.
Receipts for deductions.
Property documents.
Keep records for at least several years, as notices can be issued for past years.

The forgotten dividend

A taxpayer forgets to report dividends of 15,000 rupees. His AIS shows them, and he receives a notice. He files a revised return with the dividends and pays the small tax due, closing the matter.

Thinking every tax notice means you're in serious trouble

Many notices concern simple mismatches that can be fixed quickly online.

Key takeaways

Notices often arise from mismatches with the AIS or Form 26AS.
Check your AIS before filing and correct errors.
Respond online within deadlines, with documents.
Keep records for several years and beware of fake notices.