Not reporting bank interest or LTCG in your ITR? Avoid these 2 common tax filing mistakes

Taxpayers must report bank interest even if TDS was deducted, as TDS is only advance tax and does not exempt disclosure.

Long-term capital gains (LTCG) up to ₹1.25 lakh, though tax-exempt, must be disclosed in the ITR to avoid mismatches.

Omissions of interest or LTCG create mismatches with AIS and Form 26AS, leading to tax notices or adjustments under Section 143(1)(a).

Banks report interest income to the Income Tax Department, which appears in AIS and Form 26AS; failing to report it triggers automated scrutiny.