In a bid to enhance transparency and accuracy in income reporting, the Income Tax Department has identified discrepancies between the information received from third parties on interest and dividend income and the corresponding details provided in taxpayers’ Income Tax Returns (ITR). Notably, some taxpayers have not even filed their ITR.
Taxpayers are informed of these discrepancies through SMS and emails, utilizing the details available with the Department. This multi-channel approach ensures that taxpayers are promptly notified and can take necessary actions to address the mismatches.
Responding to Mismatches
For Registered Users
– If you have already registered on the e-filing website, simply log in to your account.
– Navigate to the Compliance portal directly after logging in.
– Under the ‘e-Verification’ tab, find details of the identified mismatches and provide your response.
For New Users
– If you are not registered on the e-filing website, click the “Register” button on [https://eportal.incometax.gov.in](https://eportal.incometax.gov.in).
– Complete the registration details.
– After successful registration, log in to your e-filing account and navigate to the Compliance portal to view and respond to the mismatches.
Reconciliation Process
To enhance the efficiency of the reconciliation process, the Compliance portal on the e-filing website [https://eportal.incometax.gov.in](https://eportal.incometax.gov.in) has introduced an on-screen functionality. This feature allows taxpayers to directly address identified mismatches for the Financial Years 2021-22 and 2022-23 on the portal itself, eliminating the need for additional documentation.
The self-contained design of this on-screen functionality ensures a user-friendly and streamlined approach, allowing taxpayers to respond and reconcile discrepancies in a structured manner.
It is important to note that the Department emphasizes that this on-screen communication is not a notice but a proactive initiative.
Important Points
– If a taxpayer has disclosed interest income under the ‘Others’ category in Schedule OS of their ITR, no additional response is required. The portal will automatically resolve the interest income mismatch, reflecting it as ‘Completed.’
– Taxpayers facing challenges in explaining the mismatch may consider the option of furnishing an Updated Income Tax Return if eligible. This step allows them to rectify any underreporting of income.
