The Income Tax department recently issued advisories to specific taxpayers regarding disparities found between the information disclosed in their filed income tax returns (ITR) and the data received from various reporting entities such as banks, financial institutions, property registrars, etc.
Aarti Raote, Partner at Deloitte India, clarified, “After filing tax returns, they undergo initial processing at the central processing centre (CPC), where discrepancies like overlooked interest or property income, or differences in claimed TDS credit, are flagged and communicated to taxpayers.”
The IT department emphasized that these advisories are not universal notices but targeted communications sent solely to cases displaying apparent inconsistencies between ITR disclosures and data obtained from Reporting Entities.
This communication aims to enable taxpayers to offer their input via the Compliance Portal of the I-T department, allowing them the chance to revise their already filed returns or submit returns if they haven’t done so yet if needed.
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The I-T department emphasized the importance of taxpayers responding promptly to this communication.
Received the Advisory? Here’s What Taxpayers Should Do
When an assessee obtains such intimation then he or she must validate that.
If you obtain the same tax advisory then act promptly by furnishing the feedback via the compliance portal and when needed you must file an amended return (if already filed) or file a belated return if not filed yet. Just know that the window for revising or filing a late return for AY 2023-24 closes on December 31, 2023.
Taxpayers have the option to challenge disparities on the portal if they disagree and provide their reasons.
Tax experts stressed the importance of aligning ITR, TDS, and TCS deductions for a seamless tax filing process. To avoid complications during assessment, it’s vital for taxpayers to thoroughly review the Income Tax department’s advisory, cross-check information, and promptly rectify any discrepancies.
It’s imperative to ensure precise tax filings, and the advisory from the Income Tax department regarding the ITR and TDS/TCS deductions mismatch highlights the significance of harmonizing disclosures in the ITR with data from reporting entities.
Missed ITR Filing? The Deadline is December 31
The assessee must note that the last date to file the final belated and revised income tax returns (ITRs) for FY 2022-23 (AY 2023-24) will end on December 31, 2023.
