I-T dept sends advisory to taxpayers over mismatch in ITR, TDS/TCS deductions

New Delhi: The Income Tax department on Tuesday said it has sent communication in the form of advisory to certain taxpayers where there is an apparent mismatch between disclosures in the ITR and information as received from the reporting entity.

Amid social media posts regarding communication from the I-T department regarding mismatch in TDS/TCS deductions and ITR filing data, the department said such communication is to facilitate the taxpayers and make them aware of the information available with the I-T department regarding the transactions reported by the Reporting Entities during the year.

"It is not a notice sent to all taxpayers, but 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," it said in a post on X.

The objective of the communication is to provide an opportunity to taxpayers & facilitate them to provide their feedback online on the Compliance Portal of the I-T department and, if necessary, revise their returns already filed or to file the return if not filed, so far.

The last date for revising or filing a belated return for AY 2023-24 (relating to income earned in 2022-23) is December 31, 2023.

"Taxpayers are requested to respond to the communication on priority," the I-T department said.

Under the I-T Act, reporting entities are required to file statements of financial transactions (SFT)with the tax department containing details of certain financial transactions or any reportable account maintained by them during the year.

Reporting entities include forex dealers, banks, sub-registrar, NBFC, post offices, issuer of bonds/debentures, mutual fund trustees, company paying dividend or buying back shares.