IT Return Mismatches: Income Tax Dept to Issue Notices for FY 2020-2021

Potential ITR-AIS mismatches for FY 2020-2021 Returns can lead to Income Tax Notices
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Regarding potential inconsistencies identified between the information provided in taxpayers’ Income Tax Returns ( ITRs ) and the Department’s records of specific financial transactions for the assessment year 2021–22 ( financial year 2020–21 ), the Income Tax Department has initiated the process of formally informing taxpayers.

For the assessment year 2021–22 ( financial year 2020–21 ), the Income Tax Department encourages individuals who have received alerts regarding anomalies in their income tax filings to submit amended forms by March 31, 2024. This is especially applicable to those identified through the e-verification process, as their information is either missing or inaccurate.

The tax department has also declared that, following a comprehensive review, individuals who have not submitted Income Tax reports for the assessment year 2021–22 but for whom the agency has information on specific high-value financial transactions must file revised reports.

“In cases where ITRs for A.Y. 2021-22 have not been filed, and the Department has information on specified high-value financial transactions, the same also needs to be examined,” stated the tax department’s announcement.

Under the e-verification scheme-2021, the Income Tax Department is reaching out to taxpayers through their registered email addresses, aiming to promote compliance and ensure transparency. Taxpayers are also advised to utilize the department’s e-filing system to access their Annual Information Statement (AIS).

Read More: Income Tax Dept releases Updated User Guide for Submitting Response to Notices under e-Verification Scheme – Feb 2024 Edition

This AIS provides a comprehensive overview of their financial data, enabling them to identify any disparities with their ITRs and, if necessary, submit amended returns ( ITR-U ).

The tax department has incorporated this information into the AIS section of the e-filing portal to encourage voluntary compliance and transparency. This initiative facilitates accurate ITR reporting by simplifying the process for taxpayers to obtain and review their financial records.

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