In an explanation that it has sent “communication” and “not a notice” to specific taxpayers regarding transactions they have made, the Income Tax Department tweeted on Tuesday. Furthermore, they stated that when there appears to be a discrepancy between the information obtained from the reporting entity and the disclosures made in the Income Tax Return (ITR), an advisory of this type is sent.
This is in response to some social media posts that brought attention to correspondence from the Income Tax department concerning discrepancies between data from ITR filings and TDS/TCS deductions. According to the income tax department, the purpose of these communications is to help taxpayers and raise awareness of the data that the I-T department has about the transactions that the reporting entities reported throughout the year.
It said, “Some references have come to the notice of the Income Tax Department regarding recent communication sent to taxpayers pertaining to transaction(s) made by them,” in a post on X (formerly known as Twitter). Please take note that the purpose of this communication is to assist taxpayers and inform them of the data that the ITD has about the transactions that the Reporting Entities reported during the year.
“This is an advisory sent in only those cases where there is an apparent mismatch between disclosures in the ITR & information as received from the Reporting Entity,” the statement continued, not a notice given to every taxpayer.
The advisory went on to say, “The communication’s goal is to give taxpayers a chance to offer their input online via ITD’s Compliance Portal and, if needed, amend their previously filed returns OR to file the return if it hasn’t been filed yet.
December 31, 2023 is the deadline for making changes to or filing a late return for AY 2023–24 (which pertains to income received in 2022-23).