• Notification Date: 02-03-2024
• Notification No: N/A

Income Tax Dept introduces On-Screen Functionality for Taxpayer Response on Mismatched Information

The Income Tax Department has unveiled a new on-screen functionality on its e-filing portal to facilitate taxpayer responses concerning identified discrepancies between income tax returns (ITRs) and information received from third parties on interest and dividend income.  

This move aims to enhance compliance and streamline the resolution process for taxpayers. 

In a recent press release, the Income Tax Department announced the rollout of an on-screen functionality on its e-filing portal specifically targeting mismatched information related to Financial Years 2021-22 and 2022-23.  

Taxpayers are being promptly notified of these discrepancies through SMS and emails, utilising details available with the Department. 

Furthermore, the statement highlighted instances where ITRs have not been filed, emphasising the importance of compliance with tax filing obligations. 

The newly introduced on-screen functionality is described as 'self-contained,' allowing taxpayers to reconcile mismatches directly on the portal without the need for additional documentation.  

The Department clarified that while this communication serves as a proactive outreach effort, it does not constitute a formal notice. 

For individuals already registered on the e-filing website, accessing the Compliance portal can be done directly upon logging into their accounts. Alternatively, those who are not yet registered must complete the registration process on the platform, after which they can log in to view and respond to the mismatched information. 

Taxpayers who have disclosed interest income in the ITR under the line item 'Others' need not respond separately, as the system will automatically resolve the mismatch, marking it as 'Completed.' 

However, taxpayers unable to explain the discrepancy are advised to consider submitting an updated ITR if eligible, according to the Income Tax Department. 

The introduction of the on-screen functionality represents a proactive measure by the Income Tax Department to engage with taxpayers and streamline the resolution process for discrepancies in income tax filings. By leveraging digital platforms, the Department aims to enhance transparency, compliance, and taxpayer experience in alignment with evolving regulatory requirements.