Source of Discrepancy: The Income Tax Department has admits ‘certain inconsistencies’ in the Statement of Financial Transactions (SFT-17) data related to the securities market, as reported by one of the Reporting Entities. This information comes from a recent tweet by the department.
Content of Tweet:
Based on feedback from taxpayers on the e-campaign for Advance Tax, the Department has identified certain inconsistencies in the data of the securities market (SFT-17) provided by one of the Reporting Entities. The reporting entity has been asked to submit a revised statement based on updated information. Hence, the data on AIS will be updated. Taxpayers are advised to wait for further updates on AIS based on the revised statement.
Details of Inconsistencies: While the specific nature of the discrepancies remains undisclosed in the tweet, news articles published in the last 24 hours suggest that these inconsistencies might have involved inflated transaction values for some taxpayers. This resulted in their Annual Information Statement (AIS) displaying inaccurate income figures.
Example: According to Economic Times: , some taxpayers reported a sale consideration of Rs. 4 lakh being inflated to Rs. 17 crore in their AIS.
Actions Taken:
- The Income Tax Department has requested the concerned Reporting Entity to submit a revised SFT-17 with accurate information.
- The AIS data will be updated based on the revised statement.
Impact on Taxpayers: Taxpayers are advised to wait for further updates on the AIS before relying on the current information. The Income Tax Department is expected to issue a subsequent notification once the revised data is incorporated.
Recommendation: Taxpayers are encouraged to monitor the official communication channels of the Income Tax Department for further updates regarding the rectification of these inconsistencies and the timeline for the AIS data refresh.
Additional Information: The identity of the reporting entity responsible for the inaccurate data remains undisclosed.
