In a recent announcement, the Income Tax Department has flagged discrepancies between filed Income Tax Returns (ITRs) and financial transaction data for the assessment year 2021-22 (FY 2020-21). Taxpayers are urged to take action promptly.
According to the department, taxpayers identified with mismatches or missing information during the e-verification process must amend their ITRs for the 2021-22 assessment year by March 31, 2024.
‘If taxpayers haven’t completed their ITRs for A.Y. 2021-22 and the government possesses information on significant financial transactions, they need to review and file revised returns,’ emphasised the Income Tax Department in a press release dated March 4.
Communicating through registered email accounts, the tax department is reaching out to taxpayers as part of the 2021 e-verification scheme. It’s essential for taxpayers to access their Annual Information Statement (AIS) via the Income Tax Department’s e-filing portal to detect any discrepancies and file revised ITRs (ITR-U) if necessary. This move, the department stresses, enhances transparency and encourages voluntary tax compliance.
Under Section 115 BAC of the I-T Act, taxpayers were offered the choice of a new tax regime for the fiscal year 2020-21, aimed at those who opted out of certain deductions or exclusions while calculating their taxable income.
In the event of an income tax mismatch, taxpayers can take action through the compliance portal, accessible via a specific online address or the ITR portal. By navigating to the e-verification tab, taxpayers can locate information on discrepancies and proceed to the verification section on the AIS portal to view the full list of identified mismatches provided by the Income-tax department.
For those caught in the mismatch net, prompt action is advised to ensure compliance and avoid any potential penalties. Stay informed and act swiftly to rectify any inconsistencies in your tax filings before the deadline.
