Received ITR Mismatch notice? Using CBDTs ‘On-screen functionality’ to reconcile and reply

The Income Tax Department discovered several discrepancies between the information obtained from third parties regarding interest and dividend income and the Income Tax Return (ITR) filed by taxpayers. In many situations, taxpayers did not even file their ITR.

To resolve the mismatch, an on-screen functionality has been added to the e-filing website’s Compliance interface, allowing taxpayers to respond.

Information is sent through SMS & emails:

The Compliance portal currently displays information mismatches for Financial Years 2021-22 and 2022-23. According to information provided by the Department, taxpayers are also being notified of the mismatch via SMS and email.

Taxpayers who have previously enrolled on the e-filing website can use the Compliance portal straight after logging into their account. The ‘e-Verification‘ tab will contain information about the identified mismatches.

To view the mismatch, taxpayers who have not yet registered on the e-filing system must first register. To register, click the “Register” button on the e-filing page and enter the required information.

After successful registration, the e-filing account can be logged into and the Compliance portal can be navigated to view the mismatches.

No document is required to be furnished

The on-screen feature is self-contained and allows taxpayers to reconcile the disparity on the portal by providing their response. No documents are required to be furnished. This is a proactive measure done by the Department to contact taxpayers and give them the chance to reply to the communication in a structured manner. It is clarified that the aforementioned message is not a notice.

In case the taxpayer has disclosed the interest income in the ITR under the line item ‘Others’ in the Schedule OS, s/he need not respond to the mismatch pertaining to the interest income. The said mismatch shall be resolved on its own and will be reflected in the portal as ‘Completed’.

Taxpayers who are unable to explain the mismatch may consider filing an Updated Income Tax Return, if eligible, to correct any underreporting of income.