The Ministry of Finance announced that the Income Tax Department had found certain discrepancies between taxpayers’ submitted Income Tax Returns (ITRs) and information from third parties on interest and dividend income.
According to information provided by the Income Tax Department, taxpayers are receiving notifications of discrepancies via emails and SMS, the ministry stated in a news release issued by PIB. It is also stated that this particular message is not a notice.
The Income Tax Return (ITR) filed by taxpayers and the information collected from third parties regarding interest and dividend income have certain discrepancies that the IT department has found. Taxpayers have frequently failed to file their ITRs altogether.
How Can You Respond?
To correct the discrepancy, taxpayers can use the on-screen facilities on the Compliance portal of the e-filing website. According to the government, taxpayers can now respond on-screen on the Compliance portal of the e-filing website https://eportal.incometax.gov.in to reconcile the mismatch.
The information discrepancies for the fiscal years 2021–2022 and 2022–2023 are currently visible on the Compliance site. After registering their accounts, taxpayers who have already enrolled on the e-filing website can go straight to the Compliance portal. Information about the found discrepancies may be found on the “e-Verification” tab.
To see the mismatch, taxpayers who are not enrolled on the e-filing website must register there. To register, go to the e-filing website, click the “Register” option, and fill out the necessary information. Upon successful registration, one may access the e-filing account and examine the mismatches by navigating the Compliance site.
By providing their response, taxpayers can use the self-contained on-screen capabilities to reconcile the differences on the portal itself. No paperwork has to be provided. According to the ministry, the IT department is taking proactive measures to engage with taxpayers and give them a chance to react to the information methodically.
The taxpayer does not need to reply to the mismatch in the interest income if they have declared the interest income in the ITR under the line item “Others” in the Schedule OS. The previously mentioned discrepancy will be fixed on its own and appear as “Completed” on the portal.
Taxpayers who are unable to explain the mismatch may consider filing an Updated Income Tax Return, if qualified, to correct any underreporting of income.
