Income tax notice
Income tax return notice

The Income-Tax Department has sent out intimation notices to 22,000 taxpayers, including salaried and high networth individuals and trusts whose deductions do not match the information furnished in their Form 16 or Annual Information Statement (AIS) or the data available with the Income Tax Department.

All these intimation notices were sent for the tax returns filed for assessment year 2023-24, and all the notices are sent in the last 15 days, ET has learnt.

It has also sent out intimation notices to about 8,000 taxpayers who have filed returns under Hindu Undivided Family (HUF) where income disparity between the return filed and data with the department was over ₹50 lakh, 900 high networth individuals (HNIs) where disparity was ₹5 crore and above and 1,200 trusts and partnership firms where disparity was over ₹10 crore and above.

Overall the primary data analytics has flagged irregularities and anomalies in the return filed in case of about 2 lakh taxpayers where either income declarations or expenditure or bank account details do not match the data collected by the department based on the transaction linked to their bank or UPI account.

This is the first intimation notice. Only if taxpayers do not respond to it or fail to provide any clarification, a demand notice would be processed,” an income-tax department official said.

Taxpayers can pay the due tax with an updated return with interest or provide a detailed explanation about it, the official said, adding that in some cases taxpayers had not included capital gains, dividend income and completely excluded the information about their other bank accounts.

A more detailed sector wise data analysis was being conducted in case of corporates, trusts and partnership firms and small businesses, another official said.

Digitisation of the economy has made it easier for them to track any wilful evasion and going forward better syncing of account aggregators will make evasion more difficult,” the second official said, adding that work is already on to make AIS more comprehensive and detailed.

AIS is a comprehensive view of information for a taxpayer.