Addressing Tax Return Discrepancies

Income Tax Department’s Alert to Taxpayers: Addressing Discrepancies

The Income Tax Department is taking proactive steps to notify taxpayers about potential inconsistencies between the information provided in their Income Tax Returns (ITRs) and the department’s records of specific financial transactions for the assessment year 2021-22 (financial year 2020-21).

Deadline for Updated Returns

Taxpayers who have received notices regarding discrepancies in their Income Tax Returns for the assessment year 2021-22 (financial year 2020-21) are encouraged to submit updated returns by March 31, 2024. This directive particularly applies to individuals flagged through the e-verification scheme due to mismatched or incomplete information.

Requirement for Unfiled Returns

Furthermore, individuals who failed to file Income Tax Returns for the assessment year 2021-22, yet are linked to specific high-value financial transactions in the department’s records, are also urged to submit updated returns after thorough examination.

Ensuring Compliance Through Verification

In an effort to ensure transparency and streamline compliance, the Income Tax Department is proactively reaching out to taxpayers via their registered email addresses. Additionally, taxpayers are encouraged to access their Annual Information Statement (AIS) through the department’s e-filing portal.

Access to Annual Information Statement (AIS)

The AIS furnishes a comprehensive summary of taxpayers’ financial information, facilitating the identification of any discrepancies with their ITRs. Taxpayers can utilize this information to submit updated returns (ITR-U) if necessary.

Incorporating Transparency into AIS

Demonstrating a commitment to transparency and voluntary compliance, the tax department has integrated this information into the AIS module of the e-filing portal. This streamlined access enables taxpayers to easily review their financial records, thereby fostering accurate ITR filing.