Income Tax Return (ITR-3) is usually filed by individuals and HUFs who have business income, professional income, capital gains, or multiple income sources. However, many taxpayers receive a message or notice from the Income Tax Department about an “ITR-3 mismatch”.
This mismatch may lead to ITR processing delay, additional tax demand, or even a compliance notice if not fixed on time.

This article explains the top reasons for ITR-3 mismatches and how you can correct them quickly.

✅ What Exactly Is an ITR-3 Mismatch?

An ITR-3 mismatch means that the income you reported in your return does not match with the data available to the Income Tax Department through:

Form 26AS
AIS (Annual Information Statement)
TIS (Taxpayer Information Summary)
Form 16 / 16A
GST data
Bank interest records
Stock broker reports
TDS/TCS statements

Whenever there is a difference—either income missing or the amount not matching—your ITR is flagged as “mismatched”.

🔍 Top Reasons Why ITR-3 Gets Mismatched

1️⃣ Business Turnover Mismatch

GST turnover is higher but ITR turnover is lower
Bank credits showing more receipts than declared turnover
Cash deposits not matching with declared business income

2️⃣ Stock Market / Capital Gains Mismatch

Broker reports higher trading volume
Capital gains (equity, mutual funds, F&O) not reported or wrongly reported
AIS shows sale value but taxpayer forgot to calculate capital gains

3️⃣ TDS Mismatch

TDS claimed is more than what appears in 26AS
Employer or client revised their TDS returns
TDS deducted under wrong PAN

4️⃣ Interest Income Mismatch

AIS reports FD/Savings interest
Taxpayer reports less or excludes it
Multiple bank accounts not considered

5️⃣ Foreign Income or Remittance Difference

Banks/forex companies report foreign credits
But taxpayer reports only business income
Freelancers and NRI-related transactions often trigger this mismatch

6️⃣ Deduction Mismatch (80C, 80D, 80G, etc.)

Claimed deduction does not match with AIS or declarations
Donation reported in AIS but not in ITR

7️⃣ Presumptive vs Normal Business Confusion

Taxpayer filed under 44AD/44ADA
AIS shows that business expenses/invoices do not match presumptive criteria

🛠️ How to Fix ITR-3 Mismatch — Step-by-Step

Step 1: Open Your AIS & 26AS

My AIS → Annual Information Statement
e-File → View 26AS

Download both and compare with the ITR copy.

Step 2: Identify the Differences

Compare:

Turnover
TDS
Capital gains
Interest income
Foreign remittances
Deductions
GST data

Highlight differences or missing entries.

Step 3: Respond in AIS (Mandatory)

Inside AIS, you must select the correct response:

✔ Information is correct
❌ Information is not fully correct
🔄 Information relates to other person / other PAN
📌 Income already included in ITR
✂️ Partially correct

Your response updates real-time in TIS.

also read: https://gstandtax.com/nifty-50-today-market-trends-key-drivers-investment-outlook/

Step 4: Correct Your ITR (If Needed)

If you agree there was a mismatch → file a Revised ITR under Section 139(5).

Keep in mind:

Revised ITR can be filed before the assessment year ends
Correct all mismatched figures before resubmitting

Step 5: Recheck Processing Status

After resubmitting:

Go to e-File → Income Tax Returns → View Filed Returns
Check status: Pending / Processed / Defective / Under Review

Usually, corrected ITR-3 is processed within a few weeks.

📌 What Happens If You Don’t Fix the Mismatch?

Ignoring the mismatch may lead to:

ITR being treated as defective
Tax demand along with interest (u/s 234B/234C)
Scrutiny notice under Section 143(2)
Delay in refund processing

So it’s always better to correct mismatches quickly.

🧾 Key Tips to Avoid Future ITR-3 Mismatches

Always reconcile AIS + 26AS + Bank statements before filing
Match GST turnover with ITR turnover
Report complete stock market trades including intraday & F&O
Declare all interest income (FD, RD, savings)
Don’t claim TDS beyond what appears in 26AS
Keep proper books of accounts if turnover is high

⭐ Conclusion

ITR-3 mismatch is common but easy to fix if you respond in AIS and revise the return on time. The key is to ensure your ITR matches the information reported by banks, brokers, employers, clients, and GST filings. A small mismatch, if ignored, can lead to unnecessary notices and delays in refunds.

ITR-3 Mismatch: Common Reasons, Fixes, and Step-by-Step Solutions