IT Deptt advises taxpayers to reconcile mismatches in interest, dividend income

Srinagar, Feb 26: With several mismatches detected between the Income Tax Returns (ITRs) filed by taxpayers and third-party information received regarding their interest and dividend incomes, the Income Tax Department has asked taxpayers to respond to such aberrations using a new functionality added to the tax filing portal.

“In many cases, taxpayers [about whom third-party information has been received for interest and dividend income] have not even filed their ITR,” the Department said in a statement, adding that information mismatches for financial years 2021-22 and 2022-23 have now been displayed on its compliance portal.

The taxpayers are also being made aware of the mismatch through SMS and emails from the Department, which stressed that this communication is not “a notice”. Taxpayers, it said, are being given a chance to help reconcile such mismatches without furnishing any document.

“The taxpayers who are unable to explain the mismatch may consider the option of furnishing an Updated Income Tax Return if eligible, to make good any underreporting of income,” the IT department advised.

Those taxpayers who have already registered on the e-filing website can navigate to the Compliance portal directly after logging into their account. Details of mismatches identified will be available under the ‘e-Verification’ tab.

Taxpayers who are not registered on the e-filing website have to register themselves on the e-filing website to view the mismatch. For registration, the “Register” button on the e-filing website can be clicked and the relevant details can be provided therein. After successful registration, the e-filing account can be logged into and the Compliance portal can be navigated to view the mismatches.

The on-screen functionality is self-contained and will allow the taxpayers to reconcile the mismatch on the portal itself by furnishing their response. No document is required to be furnished. This is a pro-active step taken by the Department to reach out to the taxpayers and provide them an opportunity to respond to the communication in a structured manner. It is clarified that the said communication is not a notice.