Income Tax Department Issues Notices For ITR Discrepancies

The Income Tax Department is urging individuals who have received notices of irregularities in their Income Tax Returns (ITRs) to take corrective action. The Department has initiated issuing formal notices to taxpayers regarding potential discrepancies between the information reported in their ITRs and the Department’s records of specific financial transactions for the assessment year 2021-22 (Fiscal Year 2020-21).

Taxpayers who have received notices of irregularities in their income tax returns for the financial year 2021-22 (FY2020-21) are advised to submit updated returns by 31 March 2024. This specifically applies to persons identified through the system electronic authentication. due to discrepancies or missing information.

The tax department also clarified that individuals who have not filed their 2021-22 income tax returns, but the department has information about specific high-value financial transactions involving them, are required to submit updated returns after careful scrutiny.

“In cases where ITRs for A.Y. 2021-22 have not been filed and the department has information about specific high value financial transactions, the same needs to be scrutinized,” the tax department said.

To increase transparency and facilitate compliance, the Income Tax Department is communicating with taxpayers through their registered email addresses under the e-verification system-2021. Taxpayers are advised to access their Annual Information Statement (AIS) through the Department’s e-filing portal. AIS provides a comprehensive overview of their financial information, enabling them to identify any discrepancies with their ITRs and submit updated returns (ITR-U) if required.

In the spirit of transparency and support of voluntariness, the tax department has integrated this information into the AIS module of the e-registry portal. This allows taxpayers to conveniently access and review their financial records, supporting accurate ITR filing.