Income Tax: For the last few days, the Income Tax Department has been sending advisory notices to taxpayers. A situation of concern has arisen among taxpayers regarding this.
In fact, the Income Tax Department has sent these advisory messages to many taxpayers regarding the discrepancy between the disclosures in their income tax returns and the information received from the reporting institutions. According to CNBC TV18, the Tax Department has made it clear that this advisory is not a notice but has been sent only for communication purposes.
Taxpayers should reply as soon as possible: Income Tax Department
The tax department said through social media platform Taxpayers can change their billed ITR based on these advisories. The last date to amend or file billed returns for assessment year 2023-24 is December 31, 2023. The department further said that taxpayers should respond to these advisory messages as soon as possible.
This clearly means that the tax department is sending warning messages to those taxpayers whose ITR data provided by the reporting entities is mismatched. This data is also called SFT (Statement of Financial Transactions). Reporting institutions include banks, NBFCs, brokers, mutual funds and many other institutions, which provide data of any taxpayer to the Income Tax Department. After this this data is matched with the data available in ITR.
Advice from tax experts
Tax experts say that if you have also received this tax advisory, then you should give necessary feedback through the compliance portal. If you have not filed your return, you should file your belated return by December 31, 2023. Tax expert and CA Kamal Murarka said that high value transactions which are not commensurate with your income will come under the radar of the IT department.
These may include income like credit card bills of Rs 10-15 lakh and above, big land deals and returns on FDs of more than Rs 5 lakh. If you have also received such a message, then change your return before the 31st or give your reply to the department.
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