Got Income Tax Notice for Mismatch in ITR? Here’s How to Deal With it

The Income Tax Department has sent notices to 22,000 taxpayers, which include high-net-worth individuals, salaried workers, and trusts. These notices are regarding differences in their deductions compared to the information on their Form 16 or Annual Information Statement (AIS) for the assessment year 2023-24.

Got Income Tax Notice for Mismatch in ITR

IT Department Sends Notices for Mismatch in ITR

The department took action because they found differences of over Rs 50,000 between claimed tax deductions and their own records. Notably, around 12,000 notices went to salaried taxpayers, and about 8,000 taxpayers under the Hindu Undivided Family (HUF) category, with income differences of over Rs 50 lakh, received notifications, as reported by the Economic Times.

Furthermore, the department sent income tax notices to 900 high-net-worth individuals (HNIs) who had discrepancies of Rs 5 crore or more, and also contacted 1,200 trusts and partnership firms with disparities exceeding Rs 10 crore.

Why Such Action?

These discrepancies typically happen when salaried taxpayers don’t provide proof of their investments for claiming deductions under section 80C to their employers on time. As a result, employers deduct extra tax, which can later be refunded during the income tax return (ITR) filing. However, because these deductions aren’t shown in Form-16, the Income Tax department’s checks pick up on these differences.

Also read:

Get Ready To Pay The Heavy Amounts If You Have Missed This Important Deadline!!

What You Should Do About the Income Tax Intimation/Notice for Mismatch in ITR?

Experts recommend the following steps to perform if you have received any intimation/notice from IT Department:

  • Find out why you got the income tax notice and check your filed return details.
  • Look closely at the math in the letter they sent you.
  • Respond quickly through the e-filing portal, and explain any mistakes in the differences they mention.
  • Make sure your tax return info is correct and matches your situation.
  • Remember, you have 30 days from when you got the letter to respond. If you don’t, the tax department will adjust your return under section 143(1)(a) without giving you another chance to fix it.

Rishabh Sharma

Rishabh is an experienced content writer and editor, he is working for Viralbake to cover a diversified range of categories. His articles mainly focus on providing information, being a travel guide, educating others, and also making people aware of technology, after all, he is a technophile. When not writing he can be found gaming, watching movies, and travelling.

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