The Income Tax Department of India (@IncomeTaxIndia) recently issued a tweet addressing taxpayers regarding certain communications sent to them concerning transactions made during the year. The tweet aims to clarify the nature of these communications and emphasizes the importance of responding promptly. In this article, we will delve deeper into the key points mentioned in the tweet and provide a comprehensive understanding of the situation.
Extract Of tweet and Screenshot:
“Some references have come to the notice of the Income Tax Department regarding recent communication sent to taxpayers pertaining to transaction(s) made by them.
Taxpayers may pl note that such communication is to facilitate the taxpayers & make them aware of the information available with the ITD regarding the transactions reported by the Reporting Entities during the year.
It is not a notice sent to all taxpayers, but is an advisory sent in only those cases where there is an apparent mismatch between disclosures in the ITR & information as received from the Reporting Entity.
The objective of the communication is to provide an opportunity to taxpayers & facilitate them to provide their feedback online on the Compliance Portal of ITD &, if necessary, revise their Returns already filed OR to file the Return if not filed, so far.
The last date for revising or filing belated return for AY 2023-24 is 31st December, 2023. Taxpayers are requested to respond to the communication on priority.”
Communication for Awareness and Facilitation:
The tweet from Income Tax India begins by acknowledging that the department has noticed references to recent communications sent to taxpayers regarding their transactions. Importantly, it emphasizes that these communications are not notices sent to all taxpayers but are advisories targeted specifically at cases where there is an apparent mismatch between the information disclosed in the Income Tax Return (ITR) and the data received from Reporting Entities.
The primary objective of these communications is to facilitate and make taxpayers aware of the information available with the Income Tax Department (ITD) regarding transactions reported by Reporting Entities during the year. This proactive approach is aimed at ensuring transparency and compliance in the tax filing process.
Opportunity for Feedback and Correction:
One crucial aspect highlighted in the tweet is that these communications provide an opportunity for taxpayers to provide feedback online on the Compliance Portal of ITD. This feedback is essential in cases where there is a mismatch between the disclosures in the ITR and the information received from Reporting Entities.
Taxpayers are encouraged to utilize this opportunity to review their filings and, if necessary, revise their returns already filed. Additionally, for those who have not filed their returns, this serves as a reminder to do so. This process is designed to streamline the tax compliance process, allowing taxpayers to rectify any discrepancies and ensure accurate reporting of their financial transactions.
Deadline for Action:
The tweet underscores the urgency of the situation by specifying that the last date for revising or filing belated returns for Assessment Year (AY) 2023-24 is December 31, 2023. Taxpayers are urged to respond to the communication on a priority basis to avoid any potential consequences of non-compliance.
Conclusion:
In conclusion, the recent communication from Income Tax India serves as a proactive measure to enhance transparency and compliance in the tax filing process. Taxpayers are encouraged to view these communications as opportunities to provide feedback, rectify any discrepancies, and ensure accurate reporting of their financial transactions. With the deadline for action approaching, it is crucial for taxpayers to respond promptly and utilize the available resources on the Compliance Portal of ITD to streamline their tax compliance. By doing so, taxpayers can contribute to a smoother and more efficient tax filing process.
