ITR Not Reflecting in AIS? How It can delay your Loan Processing

Applied for a loan and your lender says your ITR is not reflecting in AIS? This can unexpectedly delay your loan processing.

Many borrowers assume that once ITR is filed, everything is instantly updated. In reality, mismatches or delays in the Annual Information Statement can raise red flags during verification. Lenders today rely heavily on digital validation systems before approving loans.

At Saarathi.ai, we have observed that AIS discrepancies are becoming a common reason for processing delays, especially for self-employed and high-ticket loan applicants. The good news is that most issues are fixable once you understand what is happening behind the scenes.

Let us break it down clearly.

What Is AIS and Why Does It Matter?

AIS or Annual Information Statement is a detailed financial summary available on the Income Tax portal. It shows:

• Salary income

• Interest income

• TDS details

• Securities transactions

• High-value transactions

• Tax payments

AIS gives lenders a consolidated digital view of your financial activity.

It is maintained by the Income Tax Department and used for cross-verification.

Why Lenders Check AIS During Loan Processing

Earlier, lenders relied mainly on:

• ITR copies

• Bank statements

• Form 16

Now, with tighter compliance standards guided by the Reserve Bank of India, digital verification has become standard practice.

AIS helps lenders:

• Validate declared income

• Detect income mismatches

• Confirm tax compliance

• Identify undisclosed liabilities

If your ITR is filed but not properly reflected in AIS, lenders may pause processing until clarity is provided.

Common Reasons ITR Does Not Reflect in AIS

Understanding the cause helps you fix it quickly.

1. Processing Delay by Tax Department

After filing ITR:

• It must be verified

• It must be processed

• Data must sync across systems

Sometimes, there is a lag between filing and AIS update.

2. ITR Filed but Not Verified

If you filed ITR but did not e-verify:

• Return remains incomplete

• AIS may not update fully

• Lenders may treat income as unverified

Always check ITR status as “Successfully e-verified and processed.”

3. Mismatch in PAN or Details

Errors in:

• PAN number

• Assessment year

• Income reporting

can cause inconsistencies between ITR and AIS.

4. Incorrect Reporting of Income

If income declared in ITR does not align with:

• TDS entries

• Bank credits

• GST data

AIS may show discrepancies.

At Saarathi.ai, we have observed that self-employed borrowers with mixed personal and business transactions often face this issue.

How AIS Mismatch Delays Your Loan

Here is what typically happens:

1. Lender requests income verification

2. Credit team checks AIS

3. Discrepancy detected

4. Additional clarification requested

5. Loan processing pauses

This delay can range from a few days to several weeks depending on the issue.

For high-value home loans or business loans, lenders may escalate the case to manual underwriting.

Impact on Different Loan Types

For Personal Loans

• Smaller ticket loans may still proceed

• However, approval amount may reduce

• Interest rate may increase

You can compare personal loan offers on Saarathi.ai before applying to avoid such surprises.

For Home Loans

Home loans involve higher scrutiny.

Lenders typically require:

• 2-3 years ITR

• AIS consistency

• Stable income track record

Any mismatch can significantly slow down sanction.

You can track your application status transparently inside Saarathi Bazaar.

For Business Loans

Self-employed applicants face stricter verification.

Lenders check:

• Net profit consistency

• Tax compliance history

• Income growth pattern

If AIS does not reflect updated returns, approval may stall.

Using Saarathi AI, you can check eligibility first and identify lenders with flexible underwriting norms.

How to Fix ITR Not Reflecting in AIS

If you face this issue, take these steps immediately:

1. Check ITR Processing Status

Log into Income Tax portal and verify:

• Is return e-verified?

• Is status marked as processed?

If not, complete verification.

2. Raise Grievance on Portal

If processed but not reflecting:

• Submit grievance under AIS section

• Attach acknowledgement number

Resolution usually takes a few working days.

3. Provide Acknowledgement to Lender

Share:

• ITR acknowledgement receipt

• Computation of income

• Tax payment challans

This can help lender proceed while AIS updates.

4. Avoid Last-Minute Filing Before Loan Application

One common mistake we see at Saarathi.ai is borrowers filing ITR just days before applying for a loan.

Ideally, allow at least 2-3 weeks buffer after filing.

Preventive Tips for Smooth Loan Processing

To avoid AIS-related delays:

• File ITR early, not close to loan application

• Ensure all TDS entries match

• Keep bank statements clean

• Avoid underreporting income

• Maintain consistent tax filing history

According to financial reporting insights published by CRISIL, transparency in financial disclosures improves lending confidence.

Real-World Scenario

Example:

A self-employed consultant filed ITR showing income of Rs 18 lakh.

However:

• AIS reflected only Rs 12 lakh due to missing TDS update

• Lender paused application

• Additional clarification requested

• Processing delayed by 12 days

After correction and resubmission, loan was approved.

Small mismatches can create significant delays.

When Should You Be Concerned?

You should act immediately if:

• AIS shows lower income than ITR

• High-value transactions appear unexplained

• TDS entries are missing

• Lender explicitly flags discrepancy

Do not ignore such alerts.

FAQs

1. How long does AIS take to update after ITR filing?

It may take a few days to a few weeks depending on processing status.

2. Can loan be approved if AIS is not updated?

In some cases yes, but lender may seek additional documents.

3. Does AIS affect credit score?

No, but it affects lender verification and approval speed.

4. Is AIS mandatory for all loans?

Not always, but increasingly used for higher ticket loans.

5. What if AIS shows incorrect income?

Raise a grievance on Income Tax portal and inform your lender immediately.

Conclusion

If your ITR is not reflecting in AIS, it can slow down your loan processing.

Here are the key takeaways:

• AIS is used for digital income verification

• Mismatch can trigger additional scrutiny

• ITR must be e-verified and processed

• Early filing prevents last-minute delays

• Right lender selection reduces risk of rejection

Before applying, discover personalized loan options on Saarathi.ai today. Check eligibility instantly, compare lenders, and move forward with clarity and confidence.