The On-screen Functionality is Designed for Allowing the Taxpayers to Reconcile the Discrepancies Directly on the Income Tax Portal
The Income Tax Department has recently identified discrepancies between the interest and dividend income reported by taxpayers in their Income Tax Returns (ITRs) and the information received from third parties. This mismatch has led to concerns, especially as some taxpayers have not even filed their ITRs.
To address this issue promptly, the Ministry of Finance, in a Press Release dated February 26, 2024, has announced a crucial step. An on-screen functionality is now available on the Compliance portal of the e-filing website “https://eportal.incometax.gov.in”. This allows taxpayers to provide their responses and reconcile the discrepancies. At present, the identified mismatches pertain to the Financial Years 2021-22 and 2022-23.
The taxpayers are also being made aware of the mismatch through SMS and emails as per details available with the Department. In case of non-response, Taxpayers are supposed to be receiving notices of these mismatches based on the details available with the Department. For those who are already registered on the e-filing website, simply log into your account and navigate to the Compliance portal under the ‘e-Verification’ tab to view the discrepancies.
If you are not yet registered, the process is straightforward. Click on the “Register” button on the e-filing website, provide the required details, and create your account. After successful registration, you can log in to your e-filing account and access the Compliance portal to view the identified mismatches and can proceed further to reconcile and report accordingly.
The on-screen functionality is designed to be user-friendly, allowing taxpayers to reconcile the discrepancies directly on the portal itself. No additional documents need to be submitted. This proactive approach by the Income Tax Department aims to provide taxpayers with an opportunity to respond to the communication in a structured manner. It is important to note that this communication is not a notice.
For taxpayers who have already disclosed their interest income under the ‘Others’ line item in Schedule OS of the ITR, there is no need to respond to the interest/dividend income mismatch. This will be resolved automatically and reflected as ‘Completed’ in the portal.
However, for those who are unable to explain the mismatch, there is an option to consider. Eligible taxpayers may choose to furnish an Updated Income Tax Return (ITR-U) to rectify any underreporting of income.
In conclusion, it is crucial for all taxpayers to take action promptly upon noticing any such mismatch by logging in their account in the e-filing portal. By utilizing the on-screen functionality on the e-filing website, you can easily reconcile the mismatches and ensure compliance with tax regulations. In case of any difficulty, It is advisable to take help of tax consultants to avoid any kind of further mistake and unnecessary litigation with the department.
To Know the way to Verify your ITR after 30 days deadline CLICK HERE
To Download the official Press Release of Ministry of Finance CLICK HERE
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