Filing the income tax returns within the due date will not make your journey as a taxpayer easy. Presently, the department is verifying the refunds claimed by the taxpayers towards the TDS deductions in their returns.
The deadline to file Income Tax Return (ITR) for individual taxpayers for the Assessment Year AY 2022-2023 was July 31. The Income Tax Department is processing the Income Tax Returns and many taxpayers may end up getting notices for multiple reasons including calculation errors, not reporting income correctly or evening claiming excessive losses. From this year, the department has started using an Artificial Intelligence (AI) enabled software to scrutiny such claims and send out notices for discrepancies.
During these process, the taxpayers may receive a notice from the department for claiming multiple refunds under different sections of the Income Tax Act. The taxpayer may get a mail from the I-T department asking to verify and revise the ITR if the proof of investment is missing or a wrong exemption is claimed. The notice is being sent out to the individual taxpayers with an aim to reduce the amount of refund or to revise it, the Business League website reported.
The taxpayers and small traders who have claimed exemptions under Section 80G of the Income Tax Act are already started receiving such notices. Section 80G is a facility available in the Income Tax Act which allows taxpayers to claim deductions for various contributions made as donations. The deduction under the Act is available for contributions made to the specified relief funds and charitable institutions.
There are a few instances where the taxpayers of salaried class starting getting notices for higher refunds claimed or mismatch in amounts as mentioned in their Form 16. The businessmen are getting notices for showing excess losses or wrong claims. Notices are also being sent out to taxpayers for claiming exemptions under various heads like investments under Section 80C, interest on home loans and rent paid.
So if you are a salaried employee verify the refund claimed and match it with the deductions as mentioned in Form 16. Also, match your deductions with Form 26AS. The TDS amounts should be the same in both Form 26AS and Form 16 or 16A. If you find any missing information for TDS deductions in these Forms, ask the respective deductor to update their reports. After receiving such notices you should first collect proof of all investments and revise the ITR filing within 15 days.
In case of mismatch with Annual Information Statement and Form 26AS, the income reflected in AIS and 26AS is based on information received from different sources and tax compliance made by different stakeholders. These are made available to the Taxpayer for reference purposes. A taxpayer should check his book of records and provide information in the return as per the information available to him. If there is variation between the TDS/TCS or tax payments as provided in Form26AS and the TDS/TCS or tax payments provided in AIS, the Taxpayer may rely on the TDS/Tax payment information provided in 26AS for the purpose of filing tax return and for computing Pre-paid Taxes.
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