I-T Dept detects mismatches in ITRs, urges taxpayers to e-verify status

The Income Tax Department has identified mismatches between third-party information on interest and dividend income and taxpayers’ filed Income Tax Returns (ITRs). To reconcile this, an on-screen functionality is available on the compliance portal for taxpayers to respond to the discrepancies for financial years 2021-22 and 2022-23.

Taxpayers who have not filed their ITR yet are being informed about the mismatches through SMS and emails. Those registered on the e-filing website can directly access the compliance portal to view identified mismatches under the “e-Verification” tab. For those not registered, they can do so by clicking the “Register” button on the website.

The on-screen functionality allows taxpayers to reconcile mismatches by providing their response on the portal without the need for any additional documents. This proactive step by the Department aims to engage taxpayers and give them an opportunity to address the discrepancies in a structured manner. The Department clarified that the communication is not a notice.

If taxpayers have disclosed interest income under the line item ‘Others’ in Schedule OS of their ITR, they do not need to respond to the interest income mismatch. It will automatically be resolved and reflected as ‘Completed’ on the portal. Taxpayers unable to explain the discrepancies may consider filing an Updated Income Tax Return if eligible to correct any underreported income.