Income Tax Department sends notices to 22,000 individuals over mismatch in filings

The Income Tax Department of India has issued intimation notices to approximately 22,000 taxpayers over mismatch in filings. These taxpayers include encompassing salaried individuals, high net worth individuals (HNIs), trusts, and Hindu Undivided Families (HUFs). The notice has been issued regarding disparities found between the deductions claimed in their tax returns and the information available in their Form 16 or Annual Information Statement (AIS), or data maintained by the Income Tax Department.

These intimation notices pertain to tax returns filed for the assessment year (AY) 2023-24 and were dispatched within the past 15 days.

Among the recipients, around 12,000 notices were directed to salaried taxpayers where the variance between claimed tax deductions and department records exceeded Rs 50,000, as reported by the Economic Times.

Additionally, notices were sent to nearly 8,000 taxpayers who filed returns under the Hindu Undivided Family (HUF) status, with a significant income disparity of over Rs 50 lakh between their returns and the data held by the IT department. For 900 HNIs, the disparity exceeded Rs 5 crore, and for 1,200 trusts and partnership firms, it exceeded Rs 10 crore. These notices aim to rectify discrepancies in the tax declarations of these taxpayers.

In a broader context, data analytics identified irregularities and discrepancies in the tax returns of about 2 lakh taxpayers. These discrepancies primarily involve inconsistencies between income declarations, expenditures, or bank account details provided in their tax returns and the data collected by the IT department, based on transactions linked to their bank or UPI accounts. This data analysis aligns with the department’s efforts to ensure tax compliance and accuracy in financial reporting.

An official from the income tax department emphasized, “This is the first intimation notice. Only if taxpayers do not respond to it or fail to provide any clarification, a demand notice would be processed.”

Taxpayers who have received notices pertaining to discrepancies in their tax returns have several options for resolution. They can choose to pay the outstanding tax along with any applicable interest by filing an updated and corrected tax return. Alternatively, they can provide a detailed explanation for the discrepancies, ensuring transparency and compliance with tax regulations.