The Income-Tax (I-T) Department has unveiled an on-screen functionality on the compliance portal of the e-filing website. The objective is to address mismatches identified between third-party information on interest and dividend income and the filed Income-Tax Return (ITR), states the I-T department. It further points out that taxpayers have not even filed their ITR in several cases.
On-screen functionality process
For taxpayers who have already registered on the e-filing official website, a direct path to the compliance portal is available after logging into their respective accounts.
The details of mismatches are highlighted under the ‘e-Verification’ tab. Individuals who are not registered on the e-filing website can initiate the process by clicking the ‘Register’ button on the website and entering the necessary information.
After completing the registration process, users can log in to their e-filing accounts and access the compliance portal to see and try to reconcile the identified mismatches.
Documentation not needed
Considering the on-screen functionality within the compliance portal is self-contained and user-friendly, so there is no need for additional documents. Taxpayers can reconcile the mismatches on the portal itself by submitting their responses.
The overall idea behind the initiative is to offer taxpayers a structured opportunity to address the discrepancies on a prompt basis, as per the I-T department.
Proactive communication and not I-T notice
To ensure that taxpayers are well-versed in the mismatches, the I-T department is despatching SMS and email notifications based on the details available with the department.
It is to be noted that the communication despatched is not an I-T notice but a proactive step to engage taxpayers in resolving the identified discrepancies at the earliest.
Currently, the information mismatches relating to financial years (FY) 2021-22 and 2022-23 have been displayed on the compliance portal.
Special consideration for interest income
Taxpayers who have already disclosed interest income under the ‘Others’ category in Schedule OS of the ITR are not required to respond to the interest income mismatch.
In such cases, the system will resolve this mismatch automatically, and the portal will highlight it as ‘Completed.’
Options for unexplained mismatches
For taxpayers who may not be able to explain the identified mismatches, the option to furnish an updated ITR is also available in case eligible. This way, a taxpayer gets an opportunity to rectify any underreporting of income.
Rajiv is an independent editorial consultant for the last decade. Prior to this, he worked as a full-time journalist associated with various prominent print media houses. In his spare time, he loves to paint on canvas.
