Reporting errors, not evasion, spark most tax litigations, say experts
Another common source of litigation is the mismatch between information reported by banks, employers, brokers and other institutions (through Form 26AS and AIS) and the taxpayer’s own ITR, particularly around TDS credit, capital gains from mutual funds and securities, and interest income reported by multiple banks. Many tax notices issued while processing returns, and the reassessment proceedings that sometimes follow, arise not because of deliberate concealment but due to differences in reporting timelines, deductors quoting the wrong PAN, or taxpayers being unaware that a bank or employer has reported an amount different from what they disclosed in their return.
