Income Tax Dept Addresses Concerns Over Recent AIS Mismatch Advisory
The Income Tax Department addressed taxpayer concerns over its recent AIS mismatch advisory, clarifying that the messages are only meant to facilitate voluntary compliance.
On December 18, the Income Tax Department issued a clarification regarding emails and messages sent to taxpayers about differences between their Income Tax Returns (ITR) and information available in the AIS. The department said the communication was only advisory and was meant to inform taxpayers about transaction details reported by third-party entities such as banks, financial institutions, and property registrars.
The department explained that such messages are sent only in cases where there is an apparent and significant gap between the information disclosed in the ITR and the data received from reporting entities. Taxpayers were asked to review their AIS and, if required, correct the details by revising their return, filing a belated return, or submitting feedback through the Compliance Portal.
Those whose filings are correct were told they could ignore the message. The last date to revise or file a belated return for Assessment Year 2025-26 is December 31, 2025.
Soon after the advisory posted on X, a widespread frustration ignited on social media, with many users accusing the department of harassing honest taxpayers while overlooking major evaders including politicians and non-filers. In a country where only about 7% of adults file income tax returns, critics argue the focus remains disproportionately on the compliant minority rather than expanding the tax base.
One highly engaged reply questioned the department's priorities: "Did you send a notice to the politician who recently went viral for spending 70 Lakhs on fireworks? Only 3% are paying tax and you are trying to milk them as much as you can. Instead why not put these efforts to widen the tax base?"
Frustrations also centered on the department's efficiency and processes. "This is so cute, Income Tax Department. If you're really so efficient and have been tracking everything, how come the world's 4th largest economy has only 2% direct taxpayers? How come so many ITRs are still pending processing even as your last date for revision is about to end soon?" asked a software professional, reflecting delays in refund processing that have plagued many filers.
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