Resolving Income Discrepancies: IT Department’s Initiative

Introduction:

In an effort to address disparities between reported interest and dividend income by taxpayers and the data received from third-party sources, the Income Tax Department has taken proactive steps. The department has introduced a user-friendly on-screen functionality on the Compliance portal of the e-filing website to facilitate this reconciliation process.

Key Details of the Initiative:

Accessible Compliance Portal: Taxpayers are now able to access the Compliance portal on the e-filing website to provide their responses to identified income mismatches for the Financial Years 2021-22 and 2022-23.

User Navigation:

Registered users can conveniently navigate to the Compliance portal directly after logging into their e-filing account. Non-registered users, on the other hand, need to complete a simple registration process on the website to view the identified income discrepancies.

On-Screen Functionality:

The newly introduced on-screen functionality empowers taxpayers to reconcile the identified income mismatches without the hassle of furnishing any additional documents.

Proactive Engagement:

This initiative underscores the department’s commitment to proactively engage taxpayers and offer them a structured platform to address communication from the Income Tax Department.

Clarification on Notices:

It’s important to emphasize that the communication regarding income discrepancies is not to be construed as a formal notice from the Income Tax Department.

Automated Resolution:

Taxpayers who have accurately disclosed their interest income in the appropriate category of their Income Tax Return need not take action regarding the interest income mismatch, as it will be automatically resolved.

Option for Rectification:

Taxpayers facing challenges in explaining the identified income mismatches may explore the option of furnishing an Updated Income Tax Return, if eligible, to rectify any underreporting of income.

Conclusion:

The Income Tax Department’s initiative to address income discrepancies through the user-friendly Compliance portal reflects a proactive approach to engage taxpayers and streamline the reconciliation process. By providing taxpayers with a simplified platform to respond to discrepancies, the department aims to ensure compliance with tax regulations while facilitating a seamless experience for taxpayers.