CBDT Launches Electronic Campaign to Resolve Income and Transaction Mismatches for FY 2023-24 and FY 2021-22

Income and Transaction Mismatches for FY 2023-24 and FY 2021-22

Income and Transaction Mismatches for FY 2023-24 and FY 2021-22 The Central Board of Direct Taxes (CBDT), under the Ministry of Finance, has launched a new electronic campaign aimed at assisting taxpayers in resolving discrepancies between the income and transactions reported in their Annual Information Statement (AIS) and the Income Tax Returns (ITRs) filed for the financial years 2023-24 and 2021-22. Income and Transaction Mismatches for FY 2023-24 and FY 2021-22 This initiative also targets individuals with taxable income or significant high-value transactions reported in AIS who have not filed their ITRs for these years. The campaign is part of the e-Verification Scheme, 2021, and seeks to enhance transparency, simplify compliance, and promote voluntary tax compliance.

Purpose of the Campaign

The campaign aims to address mismatches identified between the transactions reported in the AIS and the income disclosed in the ITRs. This initiative reflects the Income Tax Department’s proactive approach to leveraging technology and third-party data to simplify tax compliance and ensure accurate reporting.

Key Features of the Campaign

1. Identification of Mismatches:
   • The campaign identifies discrepancies between the income and transactions reported in AIS and the details disclosed in ITRs.
   • It also highlights instances where taxpayers have taxable income or significant high-value transactions in AIS but have not filed their ITRs.
2. Communication to Taxpayers:
   • Informational messages have been sent via SMS and email to taxpayers and non-filers with identified mismatches.
   • These messages serve as reminders and provide guidance to taxpayers on addressing these discrepancies.
3. Filing Options:
   • Taxpayers can file revised or belated ITRs for FY 2023-24 by December 31, 2024.
   • For cases related to FY 2021-22, updated ITRs can be filed by the limitation date of March 31, 2025.
4. Feedback Mechanism:
   • Taxpayers can access the AIS portal through the e-filing website (Income Tax Portal) to review the information reported.
   • Feedback options include agreeing with or disputing the information provided in the AIS.

Steps to Resolve Discrepancies

1. Access Your AIS:
   • Log in to the e-filing portal at Income Tax Portal.
   • Navigate to the AIS section to view the details of income and transactions reported.
2. Verify Information:
   • Cross-check the transactions reported in AIS with your financial records and filed ITRs.
3. Provide Feedback:
   • If discrepancies are found, provide appropriate feedback through the AIS portal. Options include agreeing, partially agreeing, or disputing the reported information.
4. File Revised/Updated ITRs:
   • File a revised ITR for FY 2023-24 by December 31, 2024, if necessary. Income and Transaction Mismatches for FY 2023-24 and FY 2021-22
   • For FY 2021-22, file an updated ITR by March 31, 2025, if applicable.

Importance of the Initiative

This campaign underscores the Income Tax Department’s commitment to:

• Enhancing Transparency: By using third-party data and advanced analytics, the department ensures accurate reporting and compliance.
• Simplifying Compliance: The electronic approach reduces manual interventions, making compliance easier for taxpayers.
• Encouraging Voluntary Compliance: Taxpayers are reminded to fulfill their obligations proactively, reducing the risk of penalties.
• Promoting a Taxpayer-Friendly System: The initiative aligns with the government’s vision of creating a simplified and efficient tax ecosystem.

Why Taxpayers Should Act Now

1. Avoid Penalties: Filing revised or belated ITRs within the stipulated deadlines can help taxpayers avoid penalties and legal complications.
2. Resolve Discrepancies Proactively: Addressing mismatches early demonstrates a commitment to compliance and transparency.
3. Support Economic Growth: Paying taxes on time contributes to the nation’s development and aligns with the government’s vision of “Viksit Bharat” (Developed India).

Deadlines to Remember

• FY 2023-24: File revised or belated ITRs by December 31, 2024.
• FY 2021-22: File updated ITRs by March 31, 2025.

https://www.incometax.gov.in/iec/foportal/

Conclusion

The CBDT’s electronic campaign is a significant step toward fostering a culture of transparency, accountability, and voluntary compliance among taxpayers. By resolving mismatches and filing accurate ITRs, individuals can not only fulfill their tax responsibilities but also contribute to the nation’s economic development. Income and Transaction Mismatches for FY 2023-24 and FY 2021-22 Taxpayers are encouraged to take full advantage of this initiative and ensure compliance within the stipulated timelines.

For More Information : https://taxgyany.com/