What exactly is Tax Credit, and how can you update it online? Many taxpayers have found themselves in a situation where their Income Tax Returns (ITRs) didn’t quite match up with the information on dividend and interest income from third parties. To address this issue, the Income Tax Department has introduced a new solution. Let’s delve into the details.
It appears that some taxpayers may have overlooked filing their taxes, leading to discrepancies between their ITRs and the information on dividend and interest income reported by third parties. Many taxpayers have received notifications regarding these mismatches from the Income Tax Department.
To address this, the Income Tax Department has launched an on-screen functionality on the Compliance portal of the e-filing website https://eportal.incometax.gov.in. Taxpayers who aren’t already registered on the e-filing website must register themselves to access this functionality and view the discrepancies.
What is Tax Credit Mismatch?
Tax credit mismatch occurs when there are disparities between the information provided in your ITR and the details of dividend and interest income received from third parties.
How to Update Online:
- Log in to the e-filing portal:
- Visit the e-filing website: https://eportal.incometax.gov.in
- Enter your user ID and password to log in.
- Navigate to the Tax Credit Mismatch page:
- Once logged in, go to the dashboard.
- Click on “Services” and select “Tax Credit Mismatch.”
- Select Assessment Year:
- On the Tax Credit Mismatch page, choose the Assessment Year for which you want to view the mismatch details.
- View Mismatch Details:
- After selecting the Assessment Year, click “Submit.”
- The portal will display the mismatch between Tax Deducted at Source (TDS) and/or Tax Collected at Source (TCS) and/or Income Tax paid details provided by you in the ITR, as compared to the information reflected in Form 26AS.
Additional Information:
- Registration on the e-filing website:
- Taxpayers not registered on the e-filing portal must register themselves to access the Compliance portal and view mismatches.
- On-Screen Functionality:
- The Compliance portal offers self-contained on-screen functionality, allowing taxpayers to rectify mismatches directly on the portal.
- Update Income Tax Return (ITR):
- If unable to explain a mismatch, taxpayers may choose to submit an updated ITR if eligible to rectify any income underreporting.
- Automatic Resolution:
- If interest income was already declared in the ITR under the line item “Others” in Schedule OS, no further action is required; the discrepancy will be automatically resolved and marked as “Completed” on the portal.
By following these steps, taxpayers can effectively address tax credit mismatches and ensure accurate income tax filings.
