Major Error in data of the securities market (SFT-17): Income Tax Compliance Portal shows inflated Income, shows Rs. 450 as 45000

SFT errors cause panic among taxpayers, by showing inflated figures, due to inadvertent errors by Reporting Entities
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SFT-17 Error in data populated from reporting entities caused a shock to taxpayers with transactions in the securities market, where income of Rs. 450 was shown as Rs. 45000.

Notably, the Income Tax Department has responded through a tweet that the same has been caused by an error in the reported data and the AIS will be updated accordingly.

The gravity of the situation is evident in the reactions of individuals, such as CA Vivek Shah, who expressed discontent with the department’s response. Shah emphasized the need for stringent verification processes and urged the department to take responsibility for the errors, stating, “Dear Department, how can you give such lame excuses and get away with it? If you are not capable of verifying information before sending, take Voluntary Retirement from Service and sit at home.”

CA Vivek Shah stated, “Dear Department,

How can you give such lame exists and get away with it?

If you are not capable to verify information before sending take Voluntary Retirement from Service and sit at home.”

Addressing the need for further clarity in this matter, another individual asked:

Amid the clamor for clarity, concerned individuals took to social media to seek further explanations from the authorities. The discontent is visible, as taxpayers grapple with the implications of erroneous reporting on their financial records.

As the situation unfolds, it becomes evident that there is a pressing need for transparency and accountability in handling such sensitive financial data.

The affected individuals, including those who raised questions on social media platforms, await a comprehensive resolution from the Income Tax Department.

The Goods and Services Tax – GST Regime is also relevant to be noted here: 

Read More Here: Ease or Cease of Doing Business : Are GST Registration Queries a Growing Concern, Need Govt Intervention?

In the absence of specific guidelines concerning queries, the GST department is requesting documents that may not be readily available to the applicant. Additionally, applicants are required to respond to these queries within seven days, placing them in a challenging situation.

In the ‘X’ platform, an individual has shared the queries raised by the GST department. Most of them were related to the proof of place of business.

The applicant who received the query were directed to upload: the photos of the business premises with owner of firm where adjoining premises also visible road map from GST office to business premises

Geo coded picture of proprietor along with business premises with legible sign board

Nature of Possession – Ownership of owner of the business premises

Identity proof of witnesses mentioned in transfer deed

The need for reliability and accountability, on the rise, are to be addressed by the government/respective authorities immediately to alleviate the pain of the stakeholders, professionals and assessees.

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