IT department identifies ITR-related ‘mismatches’, announces this step for taxpayers

The tax body has released an on-screen functionality on the e-filing portal for taxpayers to furnish their response.

The Income Tax department has released an on-screen functionality on its e-filing portal for taxpayer's response, after identifying what it said were ‘mismatches’ between income tax returns (ITRs) filed by taxpayers and the information received from third parties on interest and dividend income.

"The taxpayers are also being made aware of the mismatch through SMS and emails as per details available," the IT department said (Representational Image)

“At present, the information mismatches relating to Financial Years 2021-22 and 2022-23 have been displayed on the Compliance portal. The taxpayers are also being made aware of the mismatch through SMS and emails as per details available with the Department,” it said in press release.

Also, in several cases, the ITRs have not even been filed, the statement noted.

As per the IT department, the on-screen functionality is ‘self-contained’ and people can reconcile the mismatch on the portal itself by furnishing their response.

“No document is required to be furnished. This is a pro-active step taken by the Department to reach out to the taxpayers and provide them an opportunity to respond to the communication in a structured manner. The said communication, however, is not a notice,” it added.

How to view the mismatch?

Those who are already registered on the e-filing website, can navigate to the Compliance portal directly after logging into their account.

On the other hand, people who are not registered on the website, must do so first. For this, they must click on the ‘Registration’ button the platform, provide relevant details, and set up their account. After this, the account can be logged into, and the mismatch viewed on the Compliance portal.

Who must not respond to the mismatch?

This is for individuals who have disclosed their interest income in the ITR under the line item ‘Others.' In this case, the mismatch shall be resolved on its own, and reflect as ‘Completed.’

Additionally, taxpayers who fail to explain the mismatch, must consider submitting an updated ITR if eligible, the IT department stated.