Many taxpayers are receiving Income Tax alerts where a property purchase appears in AIS, but:
• The income declared in ITR looks insufficient compared to the property value
• Declared income is below the threshold for Schedule AL (Assets & Liabilities)

This situation often raises red flags in the department’s system.

Why this may triggers future scrutiny:
 Property purchases are treated as high-value transactions
 AIS data is matched with your reported income & disclosures
 Even if Schedule AL is not mandatory, the source of funds must still be explainable

Common reasons behind the mismatch:
 Savings accumulated over many years
 Loans from banks or family members
 Sale of earlier assets
 Gifts or inheritance
 Joint ownership not properly reflected

Key takeaway:
 Non-applicability of Schedule AL does NOT mean non-reporting of source of funds
 Income Tax focuses on “capacity vs investment”, not just compliance thresholds

What you should do:
 Reconcile AIS with ITR
 Maintain documentary trail for source of funds
 Ensure correct disclosure in future returns
 Respond carefully if clarification is sought

Transparency today avoids scrutiny tomorrow.
If you’re unsure how your property transaction aligns with your declared income, it’s better to review it proactively rather than react later.

Ansh