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Income Tax Department Launches E-Verification Scheme 2021

New Delhi: The Income Tax Department has found disparities between interest and dividend income reported by third parties and the Income Tax Returns (ITRs) filed by taxpayers, with some taxpayers not filing their ITRs at all. 

To address this, a new on-screen feature has been added to the Compliance portal of the e-filing website, allowing taxpayers to respond directly. Mismatches for the Financial Years 2021-22 and 2022-23 are currently displayed on the portal, with taxpayers also notified via SMS and email. Registered users can access the Compliance portal directly, while non-registered users must sign up on the e-filing website to view mismatches. Once registered, users can log in, navigate to the Compliance portal, and address the mismatches without needing to submit documents. 

This initiative aims to facilitate structured communication with taxpayers, stressing that it’s not a formal notice. Taxpayers who have already reported interest income under ‘Others’ in their ITRs need not respond, as these mismatches will be resolved automatically. For those unable to explain the discrepancies, updating their ITRs is advised if eligible to rectify any income underreporting.

Tags: BFSI