CBDT identifies mismatches in ITRs, dividend income info from third party

The Income Tax department on Monday said it has identified mismatches in ITRs filed by some taxpayers and information on dividend and interest income received from third parties.

In a statement, the Central Board of Direct Taxes (CBDT) said an on-screen functionality has been made available in the compliance portal of the e-filing website https://eportal.incometax.gov.in for taxpayers to provide their response.

The Income Tax Department has identified certain mismatches between the information received from third parties on interest and dividend income, and the Income Tax Return (ITR) filed by taxpayers.

In many cases, taxpayers have not even filed their ITRs, it said.

At present, the information mismatches relating to 2021-22 and 2022-23 have been displayed on the e-filing compliance portal.

In order to rectify the mismatch, an on-screen functionality has been made available in the compliance portal of the e-filing website https://eportal.incometax.gov.in for taxpayers to provide their response.

"The taxpayers are also being made aware of the mismatch through SMS and emails as per details available with the department," the CBDT said.

The taxpayers who are unable to explain the mismatch may consider the option of furnishing an Updated Income Tax Return, if eligible, to address under-reporting of income, it added.

The CBDT said details of mismatches identified will be available under the "e-verification" tab on the portal.

The on-screen functionality is self-contained and will allow taxpayers to reconcile the mismatch on the portal itself by furnishing their response, the CBDT said, adding that no document will be required to be furnished.

"This is a proactive step taken by the department to reach out to the taxpayers and provide them an opportunity to respond to the communication in a structured manner," the CBDT said.

In case the taxpayer has disclosed the interest income in the ITR under the line item 'others' in the Schedule OS, he/she need not respond to the mismatch pertaining to the interest income.

The said mismatch shall be resolved on its own and will be reflected in the portal as 'completed', it added.