The Income Tax Department has issued a clarification regarding misgivings amongst some people regarding notices sent by it pertaining to transactions made by taxpayers.
In a post on X (formerly Twitter), the IT department said that the notices are not for all taxpayers, adding that these are, in fact, advisories only for those case in which there has been an ‘apparent mismatch’ between disclosures made in the income tax returns (ITRs) and information received from the ‘reporting entities.’
“Please note that such communication is to facilitate the taxpayers and make them aware of the information available with the ITD regarding the transactions reported by the Reporting Entities during the year,” it wrote on X.
The IT Department further stated: “The objective is to provide an opportunity to & facilitate the taxpayers to provide their feedback online on the Compliance Portal of ITD &, if necessary, revise their Returns already filed OR to file the Return if not filed, so far.”
What are these ‘reporting entities’?
As per Mint, these are agencies such as banks, financial institutions, stock market players, mutual funds, and property registrars.
Received the notice? What to do now?
According to Abhishek Soni, CEO, Tax2Win, one must be prompt in providing their feedback through the Compliance Portal, and, if required, file the revised ITR or the belated one (For both, the deadline is December 31 for FY 2022-23/AY 2023-24).
Agam Gupta, Executive Director, Share India FinCap, said that taxpayers must ‘carefully rеviеw thе Incomе Tax dеpartmеnt’s advisory, cross-vеrify information, and swiftly corrеct any diffеrеncеs.’