The Income Tax Department has initiated a process of issuing formal notice to taxpayers regarding potential discrepancies identified between the information reported in their Income Tax Returns (ITRs) and the Department's records of specific financial transactions for the assessment year 2021-22 (financial year 2020-21).
The Income Tax Department encourages those who received notices regarding discrepancies in their Income Tax Returns for the assessment year 2021-22 (financial year 2020-21) to file updated returns by March 31, 2024. This applies specifically to individuals identified through the e-verification scheme due to either mismatched or missing information.
The tax department additionally stated that individuals who haven't filed Income Tax Returns for the assessment year 2021-22, but the department possesses information on specific high-value financial transactions related to them, are also required to file updated returns after careful examination.
"In cases where ITRs for A.Y. 2021-22 have not been filed and, the Department has information of specified high-value financial transactions, the same also needs to be examined," the tax department statement read.
To ensure transparency and facilitate compliance, the Income Tax Department, under the e-verification scheme-2021, is contacting taxpayers via their registered email addresses. Additionally, they encourage taxpayers to access their Annual Information Statement (AIS) through the department's e-filing portal. This AIS provides a comprehensive overview of their financial information, allowing them to identify any inconsistencies with their ITRs and file updated returns (ITR-U) if needed.
In the spirit of transparency and fostering voluntary compliance, the tax department has incorporated this information into the AIS module of the e-filing portal. This allows taxpayers to easily access and review their financial records, promoting accurate ITR filing.
