Income Tax Emails Flag Deduction Mismatches Between Form 16 and ITR: Should Salaried Taxpayers Worry?

A post on social media platform X (formerly Twitter) has criticized the IncomeTax Department for sending emails that many taxpayers say are causing unnecessary fear among honest, salaried individuals.

The post was shared by chartered accountant Himank Singla, who uploaded screenshots of an email sent by the department to taxpayers. The email highlights a “significant mismatch” between deductions claimed in the Income Tax Return (ITR) for Assessment Year 2025-26 and the details reported by employers in Form 16.

According to the email, the mismatch has resulted in a high refund claim. Taxpayers are asked to review their ITR and correct any errors by filing a revised return before December 31, 2025. It warns that failure to take action could be viewed as a “deliberate choice” and may lead to detailed scrutiny by the department. The email also clarifies that it is an alert and not a formal notice, and thanks taxpayers for contributing to nation-building.

https://x.com/CAHimankSingla/status/2003303234224664717?s=20

Reacting to the message, Singla questioned

Now, if an employee hasn't reported any deduction claims to employer but has claimed those in ITR, does that mean he is a tax evader ?

Assessees claiming genuine deductions are receiving this email treating them as tax evaders and creating panic!

Also, when will @IncomeTaxIndia serve Notice on the MLA who lit up Rs. 70 lakhs worth firecrackers on a wedding ? Probably never!!

One user said he received the email despite claiming only the standard deduction. Another said the alerts arrive too close to deadlines, leaving little time to correct returns without facing penalties.

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A chartered accountant said that compliant taxpayers are being repeatedly threatened, while another noted that claiming deductions in the ITR with proper proof is legally permitted and should be treated as a mismatch, not tax evasion.

The Income Tax Department has been sending such emails and SMS alerts to thousands of taxpayers this month as part of a drive to identify errors and encourage voluntary corrections before the year-end. Officials maintain that the exercise is intended to help taxpayers avoid penalties.

Many taxpayers say the language used in the emails makes them feel like offenders, even when they have followed the law. Critics argue that while compliance is important, communication should be fair, clear, and non-alarmist.

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