The Central Board of Direct Taxes (CBDT) has issued a press release clarifying the implementation of the e-verification scheme for mismatches in interest income, dividend income, and income disclosed in Income Tax Returns (ITRs).
The Income Tax Department has identified mismatches between the information received from third parties on interest and dividend income and the ITRs filed by taxpayers. In some cases, taxpayers have not even filed their ITRs.
To reconcile the mismatches, the department has made an on-screen functionality available on the Compliance portal of the e-filing website Income Tax E filing. Taxpayers can access the details of the mismatches under the “e-Verification” tab.
The department is also informing taxpayers about the mismatches through SMS and emails.
Taxpayers who have already registered on the e-filing website can directly access the Compliance portal.
Taxpayers who are not registered on the e-filing website need to register to view the mismatches. The on-screen functionality allows taxpayers to reconcile the mismatches directly on the portal without any need to submit documents.
This is a proactive step by the department to help taxpayers rectify any errors in their ITRs. Notably, the Department has clarified that the communication from the department is not a tax notice.
Taxpayers who have disclosed the interest income under the “Others” line item in Schedule OS of their ITRs do not need to respond to the mismatch for interest income. Taxpayers who are unable to explain the mismatch can consider filing an updated ITR to rectify any underreporting of income.
Taxpayers are encouraged to visit the e-filing website and access the Compliance portal to review any mismatches and take necessary action.
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