New Delhi, Jan. 6 -- In December 2025, several salaried taxpayers received emails and SMS alerts from the income tax department flagging discrepancies in deductions and exemptions claimed in their income tax returns (ITR).

The alerts said certain claims did not match employer-reported salary data or other system records and needed revision.

Most of the flagged cases involved returns where exemptions or deductions were claimed in the ITR but did not reflect in Form 16, said Nemin Shah, director at EQX Business Consultancy.

If an employer deducted tax assuming fewer deductions, but the employee later claimed a larger set of exemptions directly in the return, it resulted in a refund of excess TDS. "Seeking a big refund results in the syst...