Here's What You Should Do If You Get A Message From Tax Department Over Mismatches In ITR

The Income Tax (I-T) department has prompted widespread concerns and discussions on social media. The messages highlight discrepancies between the income disclosures in taxpayers' returns and the information provided by reporting entities, creating a sense of urgency as the deadline for necessary actions looms large on December 31.

While the messages have left taxpayers wondering, the income tax department has clarified that these advisories are not official notices. In an official statement released on X, the department emphasized that these communications aim to inform and assist taxpayers rather than intimidate them.

The statement read, "It is not a notice sent to all taxpayers but is an advisory sent in only those cases where there is an apparent mismatch between disclosures in the ITR and information as received from the reporting entity. The objective of the communication is to provide an opportunity to taxpayers and facilitate them to provide their feedback online on the compliance portal of ITD and, if necessary, revise their returns already filed OR to file the Return if not filed, so far. The last date for revising or filing the belated return for AY 2023-24 is December 31, 2023. Taxpayers are requested to respond to the communication on priority."

To break it down, these cautionary messages are being sent to taxpayers whose Income Tax Returns (ITRs) show discrepancies compared to the data submitted by reporting entities, also known as the Statement of Financial Transactions (SFT). Reporting entities, which include banks, NBFCs, brokers, mutual funds, etc, submit data on high-value transactions, which is then cross-referenced with the information available in taxpayers' ITRs.

In the event of discrepancies or if a taxpayer has failed to file their ITR on time, the looming deadline of December 31, 2023, is the final opportunity to either file or amend their ITRs. Experts are advising recipients of these advisories to promptly provide necessary feedback through the compliance portal. For those who have not yet filed their returns, filing a belated return by the end of December is crucial to avoid any potential repercussions.

Many taxpayers took to social media to share their experiences and seek advice from fellow taxpayers and financial experts. The tight deadline has added to the pressure, leading to a surge in online queries and discussions regarding the best course of action.

Taxpayers are urged to carefully review the advisory messages and take swift action to address any discrepancies in their ITRs. Ignoring or neglecting these communications may lead to further complications, including potential penalties or legal consequences. The income tax department's emphasis on using the compliance portal for providing feedback underscores the importance of a transparent and responsive approach from taxpayers.

As the clock ticks down to December 31, the income tax department's advisory messages serve as a wake-up call for taxpayers to ensure their financial records align with the information provided by reporting entities. Proactive steps taken now can help individuals avoid unnecessary hassles and ensure compliance with tax regulations.