Income Tax Department sending emails for mismatches in ITR, AIS, high-value transactions, not filing ITR for these years

The tax department has sent information messages via email and SMS as part of this campaign to taxpayers and non-filers under the campaign, pointing out discrepancies between the ITRs filed and the transactions registered in AIS.

The purpose of these communications is to remind and direct individuals who may not have disclosed all of their income in their ITRs to file updated or late ITRs for FY 2023–2024. The deadline for submitting these late or revised ITRs is December 31, 2024.

The Central Board of Direct Taxes (CBDT) has launched an electronic campaign to assist taxpayers in resolving mismatches between the income and transactions reported in the Annual Information Statement (AIS) and those disclosed in Income Tax Returns (ITRs) for the financial years 2023-24 and 2021-22. This campaign also targets individuals having taxable income or significant high-value transactions reported in their AIS but have not filed ITRs for the respective years. The initiative is part of the implementation of the e-Verification Scheme, 2021.

As part of this campaign, informational messages have been sent via SMS and email to taxpayers and non-filers where mismatches have been identified between transactions reported in AIS and the ITRs filed. The purpose of these messages is to remind and guide individuals who may not have fully disclosed their income in their ITRs to take this opportunity to file revised or belated ITRs for FY 2023-24. The last date to file these revised or belated ITRs is December 31, 2024.

For cases pertaining to FY 2021-22, taxpayers can file updated ITRs by the limitation date of March 31, 2025.

Taxpayers can also provide their feedback, including disagreeing with the information reported in the AIS, through the AIS portal accessible via the e-filing website (https://www.incometax.gov.in/iec/foportal/).

This initiative reflects the Income Tax Department’s commitment to leveraging technology to simplify compliance and ensure transparency. By utilising third-party data, the department aims to create a more efficient, taxpayer-friendly system that aligns with the vision of Viksit Bharat.

The CBDT encourages all eligible taxpayers to take advantage of this opportunity to fulfil their tax responsibilities and contribute to the nation’s economic development. This effort not only supports the government’s vision for a developed India but also promotes a culture of transparency, accountability, and voluntary compliance.

Income-Tax Department implements e-verification to address ITR ‘mismatches’

The Income Tax (I-T) Department has introduced on-screen functionality on the compliance portal of its e-filing website to address “mismatch” in information from third parties compared to taxpayers’ I-T Returns (ITR), it said on February 26.

The I-T Department said it has identified discrepancies in the information received from third parties regarding interest and dividend income when compared to taxpayers’ ITR. Notably, some taxpayers have not filed their ITR, it added.

Accessing the Compliance Portal

The on-screen functionality can be found on the Compliance portal of the e-filing website here where details for mismatches for FY2021-22 and FY2022-23 have been made available.

Taxpayers will be informed about the mismatches through SMS and emails based on the details available with the Department. The release added that this is a communication to taxpayers and not a notice.

Registered users on the e-filing website can directly access the Compliance portal by logging into their accounts. Mismatch details are found under the “e-Verification” tab.

For those not registered, the “Register” button on the e-filing website allows them to sign up. After successful registration, users can log in and navigate to the Compliance portal to view mismatches.

The on-screen functionality is user-friendly and allows taxpayers to reconcile mismatches directly on the portal without the need for additional documents.

Exception for Interest Income Disclosure

Taxpayers who have disclosed interest income under the ‘Others’ category in Schedule OS of the ITR need not respond to interest income mismatches. These discrepancies will be automatically resolved and reflected as ‘Completed’ on the portal.

Taxpayers unable to explain mismatches may choose to submit an Updated Income Tax Return if eligible.