IT-Department clarification on bulk ITR and 3rd-party information mismatch intimation received by Taxpayers
There are some ITR Mis-matches between the information the Income Tax Department received from third parties regarding interest and dividend income and the information that taxpayers reported on their Income Tax Returns (ITRs). Taxpayers have frequently neglected to file their ITRs altogether.
Income Tax Department issues Mass notices for ITR mismatch for FY 2022-23 and FY 2021-22
How to Reconcile Income Tax Return (ITR) Mis-Matches?
Taxpayers can now offer their response using an on-screen feature in the Compliance portal of the e-filing website, https://eportal.incometax.gov.in, to reconcile the mismatch. The Compliance portal now shows the information mismatches for the Financial Years 2021–22 and 2022–23. According to information provided by the Department, the taxpayers are also being notified of the discrepancy by emails and SMS.
Using E-Verification Tab on Income Tax Portal
After enrolling onto their account, taxpayers who have already enrolled on the e-filing website can go straight to the Compliance portal. Information about the found discrepancies can be found on the “e-Verification” tab.
In order to observe the mismatch, taxpayers who are not registered on the e-filing website must register there. To register, go to the e-filing website, click the “Register” option, and fill out the necessary information. Upon successful registration, one can access the e-filing account and examine the mismatches by navigating the Compliance site.
By providing their response, taxpayers can use the self-contained on-screen functionality to reconcile the mismatch on the portal itself. There is no paperwork that needs to be provided. The Department is reaching out to the taxpayers proactively and giving them a chance to reply to the correspondence in an organized way. It is made clear that the communication in question is not a notification.
What if there is no mis-match?
The taxpayer is not need to reply to the mismatch on the interest income if they have declared the interest income in the ITR under the line item “Others” in the Schedule OS. The aforementioned discrepancy will be fixed on its own and appear as “Completed” on the portal.
If the taxpayers are unable to provide an explanation for the discrepancy, they may want to think about filing an updated income tax return, if they are qualified, in order to correct any income underreporting.
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