Income Tax India makes clarification on ITR-AIS mismatch notices sent to Taxpayers

The Income Tax Department has received some references to recent communications issued to taxpayers regarding the transaction(s) made by them.

Taxpayers should be informed that the purpose of such communication is to assist taxpayers and make them aware of the information available with the Income Tax Department on the transactions reported by the reporting entities during the financial year.

It is not a notice that is delivered to all taxpayers, but rather an advisory that is sent only when there is a clear mismatch between disclosures in the ITR and information received from the reporting Entity.

The purpose of the notice is to give taxpayers the chance and facilitate them in providing feedback online on the Income Tax Department Compliance Portal and, if necessary, revising their already filed returns or filing the return if it has not yet been filed.

The deadline for revising or filing a late return for the assessment year 2023-24 is December 31, 2023. Taxpayers are asked to respond to the communication on a priority basis.