Update from Income Tax Dept
References have come to the notice of the Income Tax Department (ITD) regarding apprehensions about a recent communication sent to taxpayers pertaining to mismatch of transaction amount shown in Income Tax Return (ITR) filed and information available with the ITD.
The Department has taken note of the same & has issued a press release clarifying the issue. (Attached)
• Taxpayers may please note that this is a structured query run by the ITD, under the category of Interest income reported in the ITRs.
• Where 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 mismatch shall be resolved on its own and will be reflected on the portal as ‘Completed’.
• Taxpayer can check the status of mismatch on the Compliance Portal to verify the same.
• The objective of the communication is to provide an opportunity to taxpayers & facilitate them to provide their feedback online on the Compliance Portal of ITD &, if necessary, file an Updated Return. more
The Department has taken note of the same & has issued a press release clarifying the issue. (Attached)
• Taxpayers may please note that this is a structured query run by the ITD, under the category of Interest income reported in the ITRs.
• Where 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 mismatch shall be resolved on its own and will be reflected on the portal as ‘Completed’.
• Taxpayer can check the status of mismatch on the Compliance Portal to verify the same.
• The objective of the communication is to provide an opportunity to taxpayers & facilitate them to provide their feedback online on the Compliance Portal of ITD &, if necessary, file an Updated Return. more
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It is heartening to note that the Income Tax department is strengthening its processes through use of technology. However, the department should do such things keeping in mind sensitivities of people. Not everyone understands tax sections and most people dont file their returns by themselves. A preparatory message by way of a public announcement should have preceded these notices. A very big letter replete with legal jargon and disclaimers does no good. While this notice doesnt go to everyone, it has gone to a significant number of people though automated mode. In most cases, there is no error but more of classification issues. Hopefully, the department will use this as a learning experience in its future actions. Tax department should not be a terror. People will comply voluntarily if tax returns and forms are simple and consisent across years, tax policies are stable and avoid confusion. Even today, tax return forms keep getting changed every year. Moreover, the tax returns are too lengthly and call for too much information. they have to keep it as simple and less time consuming as possible to avoid dispute, litigation and illwill. more
Feb 27
I wish such messages could also be sent to Mallaya/Choksi's / Nirav Modi/ Adani/Bhandari's /Ambani's etc and all the crony capitalists and all great people who have 'had sucked the blood money out of Indian economy more
Feb 27
