A disparity between disclosures in submitted income tax returns (ITRs) and information obtained from the reporting company has prompted the Income Tax (I-T) department to send advisories to certain individuals. Banks, financial institutions, stock market participants, mutual funds, and property registrars are just a few of the numerous organizations that are listed as reporting entities.
First, the central processing center (CPC) processes the filed tax forms. Here, any obvious errors or inconsistencies—such as missing interest or house property income or a discrepancy in the TDS credit claimed—are noted and communicated to the taxpayers.
The IT department stated in a post on X that “it is not a notice sent to all taxpayers, but rather an advisory sent in those cases where there is an apparent mismatch between disclosures in the ITR & information as received from the Reporting Entity.”
The communication’s goal is to provide taxpayers a chance to submit their input online via the I-T department’s Compliance Portal and, if needed, to amend previously filed returns or file the return if it hasn’t been filed yet.
Taxpayers are asked to reply to the correspondence as soon as possible.
Taxpayers should review this notification as soon as they receive it.
If this tax advisory has also been sent to you, take immediate action by using the Compliance Portal to provide input. If necessary, you should also file the amended return, if it has already been filed, or file it later, if it hasn’t been filed yet. Recall that the deadline for amending or filing an amended return for the 2023–24 tax year is December 31, 2023.
On the portal, taxpayers can also dispute disagreements with him and justify.
Making sure that your TDS, TCS, and ITR deductions are all in line is essential for a seamless tax filing process. In order to reduce potential problems throughout the assessment process, taxpayers should thoroughly review the advice provided by the Income Tax department, cross-reference data, and promptly correct any discrepancies.
It is imperative to ensure that tax filings are accurate. The Income Tax department’s warning regarding an inconsistency in TDS/TCS deductions and ITR disclosures highlights the need of synchronizing ITR disclosures with reporting entity data.
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