Income Tax Department Alerts Taxpayers on Mismatch in Specified Financial Transactions

New Delhi: In a bid to enhance transparency and encourage voluntary tax compliance, the Income Tax Department is notifying taxpayers about identified mismatches between information filed in the Income Tax Returns (ITRs) for Assessment Year (A.Y.) 2021-22 (Financial Year 2020-21) and the information on specified financial transactions available with the Department.

The Department receives information on specified financial transactions from various sources, and this information is reflected in the Annual Information Statement (AIS) module, accessible to taxpayers for viewing. Cases of mismatch have been identified in some ITRs filed for A.Y. 2021-22, prompting the Department to send communications to taxpayers via their registered e-mail accounts.

As part of the e-Verification Scheme-2021, taxpayers are urged to check their AIS through the e-filing portal and file updated ITRs (ITR-U) where necessary. For eligible non-filers, the option to submit updated returns (ITR-U) under section 139(8A) of the Income-tax Act, 1961, is also available. This initiative aims to promote tax compliance and address any discrepancies for the mentioned assessment year.