Inconsistency in filed ITR? What You Should Do Next

Earlier this month, the Income Tax Department announced that it is currently notifying taxpayers of a “mismatch” between the data included in their Income Tax Return (ITR) and the data on specific financial transactions that the department has on file for the assessment year 2021–2022 (FY 2020–21).

By Sunday, March 31, 2024, taxpayers need to submit updated income tax returns (ITRs) for the 2021–22 assessment year, according to the tax department’s advice. This pertains to individuals whose cases the e-verification procedure has found because of inconsistencies or omissions of data.

According to the tax department, taxpayers must also review and submit the amended returns if they haven’t finished their ITRs for the assessment year 2021-2022 and the government has information on certain high-value financial transactions.

The income tax department said in a press statement dated March 4 that “where ITRs for A.Y. 2021–22 have not been filed and, the Department is in possession of information about specified high-value financial transactions, the same also needs to be examined.”

According to the announcement, the tax agency is corresponding with taxpayers using their email accounts that are linked to the I-T agency as part of the e-verification program 2021.

The Income Tax Department also encouraged taxpayers to use the e-filing facility to examine their Annual Information Statement (AIS). They are able to spot any discrepancies in the AIS and submit updated ITRs (ITR-U) if needed. The tax agency claims that in order to increase openness and encourage voluntary tax compliance, taxpayers may examine this information, which is shown in the AIS module.

For the 2020–21 fiscal year, the government offered taxpayers the option to choose a new tax system under Section 115 BAC of the I-T Act. The new I-T slabs were intended for individuals who, in calculating their total income for tax purposes, did not use or forgo certain deductions or exclusions.

In the Event of an Income Tax Mismatch, Follow These steps:

There are two methods to access the compliance portal: by entering into the income tax return (ITR) portal and via a special internet URL (https://eportal.incometax.gov.in), where the e-verification tab contains information on the discrepancy.

Visit the websites mentioned above and seek out the “Compliance Portal” option under the “Pending Actions” page.

Clicking on the “Verification” part will take you to a new website, https://ais.insight.gov.in/complianceportal/everification.

After that, the income-tax department will provide you with a report of all the discrepancies they found.