The Income Tax (I-T) Department has issued advisories to several taxpayers concerning discrepancies between the information furnished in their Income Tax Returns (ITRs) and the data received from reporting entities.
However, it’s important to understand that these advisories are not official notices but communications from the I-T department.
The I-T department has stated that the objective is to allow taxpayers to revise their already filed ITRs or file the return in case they have not done so far. The deadline for revising or filing belated returns for the Assessment Year (AY) 2023-24 is December 31, 2023, and taxpayers are required to respond to the communication promptly.
The initial date for filing ITR was July 31, 2023. As per Section 234F of the Income-Tax Act (ITA), 1961, individuals failing to file ITRs before the due date will have to pay a late filing fee.
Here’s how to address the issue related to ITR mismatch advisory:
The I-T department has sent these messages to taxpayers whose ITRs exhibit mismatches with the data submitted by Reporting Entities (REs), also referred to as the Statement of Financial Transactions (SFTs).
These REs, including banks, Non-Banking Financial Companies (NBFCs), brokers, and mutual funds, file data related to high-value transactions, which is cross-referenced with the data disclosed in ITRs.
In cases of discrepancies or if a taxpayer has missed the deadline for filing their ITR, December 31, 2023, is the final date to file or amend the ITRs.
As per tax experts, in case taxpayers receive such advisories, they are required to furnish necessary feedback through the compliance portal. In case such individuals haven’t filed their ITRs, they are advised to file a belated return by the December 31, 2023 deadline.
This way, any inadvertent errors or omissions are taken care of through timely rectification, preventing potential complications at a later stage. In addition, taxpayers could report differences on the portal and state any issues to seek further clarification.
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.
