The Income Tax Department has issued a crucial clarification, stating that the recent SMS and email communications sent to numerous taxpayers are advisory in nature and not punitive notices. The messages aim to assist individuals in voluntarily reviewing and correcting their income tax filings where discrepancies have been identified.
Advisory, Not Notice: The Core Message
In a detailed post on social media platform X, the tax authority sought to allay concerns, explaining that the communications are being sent only in cases where a significant gap exists between the disclosures in a taxpayer's Income Tax Return (ITR) and the financial information received from reporting entities like banks and financial institutions. The department emphasized that the objective is to make taxpayers aware of transaction-related data already available with the authorities, providing them a chance to proactively address any inconsistencies.
An Opportunity to Correct Your Filing
The department has framed this initiative as a taxpayer-friendly measure. The communication directs individuals to review their Annual Information Statement (AIS) on the compliance portal. Taxpayers can then submit their feedback online. If discrepancies are found, they have the option to revise a previously filed return or submit a belated return if they haven't filed one for the relevant assessment year yet.
This move follows a recent crackdown on intermediaries who were involved in filing fraudulent claims, often linked to donations to unrecognised political parties or charitable organisations, to illegally reduce tax liability.
Key Dates and Action for Taxpayers
While the original deadline for filing ITR for FY 2023-24 ended on September 16, 2024, the department has highlighted an important provision. Taxpayers can still file a belated income tax return until December 31, 2025. This facility is critical as it helps avoid penalties for unpaid tax liability.
The Income Tax Department's instruction is clear: Taxpayers should respond promptly via the Compliance Portal if discrepancies exist, or simply ignore the message if their filing is correct. This approach underscores the voluntary and corrective spirit of the entire exercise, shifting the focus from enforcement to collaborative compliance.
