Errors and Discrepancies in Income Tax Returns: FPIs and AIFs receive Notices

Income Tax Returns - FPIs - AIFs - Notices - taxscan

Due to several errors and discrepancies in the income tax returns, the foreign portfolio investors (FPIs) and alternative investment funds (AIFs) have received notices from the income tax department.

These include errors in capital gains tax computations, erroneous declarations, suppression of income and wrong exemption claims, sources said. These notices were sent in October and November and relate to the tax returns filed for fiscal 2022.

A senior tax official estimated the tax discrepancies aggregated to about 13,000 crore, adding that digital data integration is helping spot errors and evasion. “We are in the process of sending more notices,” the official said, adding that while some notices have questioned capital gains tax computations, others relate to lapses in filing.

FPIs and AIFs that have filed capital gains tax at the lower 15 percent surcharge have been getting these notices, said people aware of the matter.

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