If you’ve been scrolling Reddit lately, you’ve probably seen a flood of anxious posts from taxpayers who have received unexpected Income Tax notices. From claims on questionable deductions to missing TDS, unreported Virtual Digital Assets (VDA) transactions, or even undeclared foreign income, mistakes in filing seem to be catching up with people faster than ever.

The culprit? India’s new AI-driven 360° profiling system. This advanced technology uses a variety of databases, including those from banks, brokers, mutual funds, international remittances, property registries, and even digital asset exchanges, to cross-verify your reported income. This means that even minor inconsistencies in your ITR may cause a scrutiny notice up to six assessment years.

In this context, diligent filing is more than just compliance; it is about avoiding unnecessary stress and potential penalties.

Why Accuracy Is Crucial

AI Cross-Verification
Every rupee you earn or invest leaves a digital trail in the system. Banks, employers, stockbrokers, and even payment apps report your transactions to the tax department. If your ITR doesn’t match it, the system flags it automatically.

Virtual Digital Asset and Crypto Transactions
Gains from trading Bitcoin, Ethereum, NFTs, and other VDAs are taxed at 30% plus cess. Even if you withdrew only part of your holdings, it counts. Forgetting to declare these is one of the biggest triggers for notices today.

Foreign Income & Assets
Many professionals working abroad or holding overseas investments forget they need to disclose these under Indian law (if they qualify as resident taxpayers). Non-disclosure is a red flag for the system.

Deductions & Exemptions
Incorrectly claiming HRA, home loan interest, or 80C deductions without proper documentary support can backfire. The AI now checks whether these claims are consistent with information from other sources.

10-Point Checklist for Safe ITR Filing

With AI-driven 360° profiling, even the most minor error in your ITR can invite scrutiny. Here’s how to stay safe:

1. Match AIS/TIS & Form 26AS – Cross-check all income sources, TDS, and transactions. These are precisely what the department sees.
2. Declare ALL bank accounts – Even small savings account interest must be declared. Undeclared ₹500 interest may not look like much, but the AI system notices mismatches.
3. Report VDAs/Crypto Gains – 30% flat tax applies, don’t skip them.
4. Disclose Foreign Assets – Bank accounts, mutual funds, or property held abroad. Transparency is safer than silence.
5. Claim Deductions Carefully – Only if you have proper documentary proof. Random or inflated claims are low-hanging fruit for scrutiny.
6. Check Salary vs Employer TDS – Avoid mismatches in income vs deductions.
7. Include FD & RD Interest – Banks already report this to the IT department.
8. Revisit Past Returns – Errors can be noticed up to 6 years later. If you discover errors, consider filing a revised return, updated return or rectification, as the case may be.
9. Avoid Guesswork – Enter exact figures, don’t round off unnecessarily.
10. Consult a CA if unsure – Especially for foreign income, VDAs, or complex cases. Consulting a Chartered Accountant can save you both money and peace of mind. Just remember, pay now and relax later, or relax now and pay later.

Filing ITR today = Filing with accuracy, honesty & clarity.

Peace of mind is priceless—file it clean, file it right.

Filing your ITR today is no longer just a yearly ritual—it’s a data-driven compliance process. The new AI ecosystem doesn’t just look at your salary slip; it sees the complete 360° picture of your financial life. One oversight—no matter how small—can trigger a chain of notices.