Income Tax Department Identifies Mismatches
The Income Tax Department has discovered disparities between third-party information regarding interest and dividend income and the Income Tax Returns (ITR) filed by taxpayers, as per the finance ministry’s announcement on Monday.
In a press note by PIB, the ministry stated that the IT department is executing the e-Verification Scheme-2021 and notifying taxpayers of mismatches through SMS and emails based on data available with the Income Tax Department. It’s important to note that this communication isn’t a notice.
Understanding the Situation
The ministry further clarified, “The IT department has identified certain mismatches between the information received from third parties on interest and dividend income, and the Income Tax Return (ITR) filed by taxpayers. In many cases, taxpayers have not even filed their ITR.”
How to Respond?
Taxpayers can address these mismatches through the on-screen functionality provided on the Compliance portal of the e-filing website.
| Financial Years | Mismatches Displayed |
|---|---|
| 2021-22 | Yes |
| 2022-23 | Yes |
To reconcile the discrepancies, taxpayers can use the on-screen functionality available at https://eportal.incometax.gov.in. Those already registered on the e-filing website can directly access the Compliance portal after logging in.
For unregistered users, registration is necessary to view the mismatches. Click on the “Register” button on the e-filing website and provide the required details. After successful registration, log in to the e-filing account and navigate to the Compliance portal to view the mismatches.
The on-screen functionality is comprehensive and allows taxpayers to reconcile mismatches directly on the portal without the need for document submission. This initiative aims to proactively engage taxpayers and provide them with a structured platform to respond.
Special Cases
If taxpayers have disclosed interest income under the line item ‘Others’ in Schedule OS of the ITR, they need not respond to the interest income mismatch. It will be resolved automatically and reflected as ‘Completed’ in the portal.
Taxpayers unable to explain the mismatch may opt to file an Updated Income Tax Return if eligible, to rectify any underreporting of income.
This proactive approach by the IT department aims to facilitate communication with taxpayers and provide them with an opportunity to address discrepancies effectively.