Advisory on Mismatched Disclosures
The Income Tax (I-T) department has issued an advisory to certain taxpayers regarding discrepancies between the disclosures in the income tax returns (ITR) filed and the information received from reporting entities. Reporting entities encompass a range of agencies, including banks, financial institutions, stock market players, mutual funds, and property registrars.
Identification of Discrepancies
According to Aarti Raote, Partner at Deloitte India, after taxpayers file their returns, the central processing centre (CPC) processes them. If there are apparent mistakes or mismatches, such as missed interest, house property income, or differences in TDS credit claimed, the CPC highlights these and sends advisories to taxpayers.
Targeted Communication, Not a General Notice
The communication is not a notice sent to all taxpayers but is specifically targeted at cases where there is an apparent mismatch between ITR disclosures and information received from reporting entities. The objective is to provide an opportunity for taxpayers to provide feedback online through the Compliance Portal of the I-T department. If necessary, they can revise their already filed returns or file the return if not done so far.
Prompt Response Encouraged
The I-T department emphasizes the importance of taxpayers responding promptly to the communication. The advisory aims to facilitate taxpayers in providing feedback and taking corrective actions, if needed, to ensure alignment between ITR disclosures and information from reporting entities.
Guidance for Taxpayers
- When a taxpayer receives the advisory, it is crucial to review it promptly.
- Taxpayers are urged to provide feedback through the Compliance Portal and, if required, file revised returns or belated returns.
- The window for revising or filing belated returns for Assessment Year 2023-24 closes on December 31, 2023.
Expert Insights and Recommendations
According to Abhishek Soni, CEO of Tax2win, taxpayers should act promptly by providing feedback through the Compliance Portal and filing revised or belated returns as necessary.
Aarti Raote suggests that taxpayers can refute differences on the portal by providing reasons for disagreement.
Agam Gupta, Executive Director at Share India FinCap, emphasizes the importance of aligning ITR, TDS, and TCS deductions to ensure a smooth tax filing process. He encourages taxpayers to carefully review the advisory, cross-verify information, and promptly correct any differences.
Year-End Reminder: December 31 Deadline
Taxpayers are reminded that the deadline to file final belated and revised income tax returns (ITRs) for FY 2022-23 (AY 2023-24) is December 31, 2023. It is crucial to meet this deadline for compliance with tax regulations.
