The Income Tax (I-T) department reminded taxpayers on March 4, 2024, that they had been notified via SMS and emails about discrepancies in their interest and dividend incomes.
The deadline for filing updated returns for Assessment Year (A.Y.) 2021-22, ending on March 31, 2024, it reminded. The updated return should be accompanied by proof of tax payment, which means additional tax, interest and fee if necessary.
E-Verification Scheme and Updated Returns
Under the e-Verification Scheme-2021, taxpayers are receiving notifications regarding mismatched information for A.Y. 2021-22.
In some cases of Income Tax Returns (ITRs) filed for A.Y. 2021-22 (F.Y. 2020-21), a ‘mismatch’ has been identified, between ITR and information of specified financial transactions, as available with the Department, CBDT said.
Taxpayers should review their Annual Information Statement (AIS) through the e-filing portal and file updated ITRs (ITR-U) if necessary, it said.
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All About E-Verification Scheme; What Should You Do?
To address discrepancies, taxpayers must visit the Income Tax e-filing website at https://www.incometax.gov.in/., login, Go to the “Pending Actions” tab and navigate to the 'Compliance Portal.' On the Compliance Portal, navigate to the ‘e-Verification’ tab. Click on a row displayed under the e-Verification list, where the response is to be provided.
Now click on the ‘Pending’ button and the user will be navigated to the ‘Response to Notice’ screen. Provide the response against each displayed question, and add supporting documents through the Add Attachment option and click on the Submit button.
Details of your transactions where disputes may have been raised can be seen in the AIS portal of your income tax account for FY 2020-21 onwards.
Updated Returns
If the department was right in pointing out the mismatch, and you are not able to explain the mismatch, the taxpayer should file an updated return under Section 139(8A) of the Income-tax Act, 1961.
This can be done within two years from the end of the relevant Assessment Year, so for financial Year 2021-22, March 31, 2024 is the last date.
This should be done by paying tax on the missed income along with additional tax to avoid further proceedings in the form of assessment/reassessment which could lead to tax demand and penalty.
As of now, you have to pay an additional tax of 25 per cent in the first year and 50 per cent in the second year while updating your return.
Taxpayers who have disclosed interest income under the 'others' category in Schedule OS of the ITR need not respond to mismatches pertaining to interest income.
Their discrepancy shall be resolved automatically and will be reflected in the portal as 'completed', CBDT had clarified earlier.
