LI Network
Published on: December 27, 2023 at 06:33 IST
The Income Tax department, in response to apparent mismatches between disclosures in Income Tax Returns (ITR) and information received from reporting entities, has issued advisories to specific taxpayers.
Amid circulating social media posts discussing communication from the Income Tax department related to discrepancies in TDS/TCS deductions and ITR filing data, the department clarified that these communications aim to assist taxpayers by making them aware of information available with the department concerning transactions reported by reporting entities throughout the year.
The department emphasized that these communications are not notices sent to all taxpayers but are advisories specifically sent in cases where there is an observable mismatch between ITR disclosures and information received from the reporting entity.
In a recent post on X, the department stated, “The objective of the communication is to provide an opportunity to taxpayers & facilitate them to provide their feedback online on the Compliance Portal of the I-T department and, if necessary, revise their returns already filed or to file the return if not filed, so far.”
Furthermore, taxpayers have been urged to respond to these communications promptly. The Income Tax department clarified that the advisory serves as an opportunity for taxpayers to offer feedback online on the Compliance Portal, and if required, revise their previously filed returns or file returns if they haven’t done so yet.
The deadline for revising or filing a belated return for Assessment Year 2023-24, related to income earned in 2022-23, is December 31, 2023.
Under the Income Tax Act, reporting entities, including forex dealers, banks, sub-registrars, NBFCs, post offices, issuers of bonds/debentures, mutual fund trustees, and companies paying dividends or buying back shares, are mandated to file statements of financial transactions (SFT) with the tax department. These statements contain details of specific financial transactions or reportable accounts maintained during the year.
In light of these developments, the Income Tax department encourages taxpayers to utilize the opportunity provided by the advisory to ensure accurate reporting and compliance, thereby facilitating a smoother tax filing process.