2 ITR Mistakes That Trigger Tax Notices on You

Many Indians forget to report bank FD interest or LTCG in their ITR thinking TDS or tax exemption covers it. It doesn't. The tax department's AIS system sees everything — and mismatches bring notices.

Here's what happened: Income Tax Department's AIS and Form 26AS now auto-capture all interest income, dividends, and capital gains reported by banks and brokers.. Taxpayers often skip reporting FD interest (assuming TDS is enough) or LTCG under ₹1 lakh (assuming it's exempt and invisible).. Any mismatch between what you report in your ITR and what AIS shows can trigger an automated scrutiny notice — even if no extra tax is owed..

What you should do: Log into the Income Tax portal and download your AIS and Form 26AS before filing — cross-check every entry against your ITR draft.. Report ALL bank FD, RD, and savings account interest in your ITR under 'Income from Other Sources', even if TDS was already deducted.. Disclose LTCG from mutual funds or stocks in Schedule CG even if the gain is below ₹1 lakh — exemption doesn't mean non-disclosure..

TDS on FD only covers 10% tax — if you're in the 20% or 30% bracket, unreported interest means you owe MORE tax plus interest under Section 234B.

For readers weighing their credit and loan options, our personal loan guide and CIBIL score resources put this update in context.